#Top Chip Stocks Are Crushing It This Year
Semiconductor stocks have posted strong gains in 2025, and some names are far outpacing the broader tech sector. The standout is ACM Research, which is up 110% year-to-date, followed by AMD at 47% and KLA at 45%. These gains are driven by booming demand for AI infrastructure, next-gen chip design, and data center expansion.
The top 10 performing chip stocks include a mix of manufacturers, equipment suppliers, and specialty designers, showing strength across the entire semiconductor supply chain. For retail investors, these trends are creating real opportunities—but also raising questions about sustainability and valuation.
| Company | Ticker | YTD Return* |
| ACM Research Inc | NASDAQ: ACMR | 110% |
| Advanced Micro Devices Inc | NASDAQ: AMD | 47% |
| KLA Corp | NASDAQ: KLAC | 45% |
| Lam Research Corp | NASDAQ: LRCX | 37% |
| Micron Technology Inc | NASDAQ: MU | 33% |
| NVIDIA Corp | NASDAQ: NVDA | 31% |
| Broadcom Inc | NASDAQ: AVGO | 28% |
| Microchip Technology Inc | NASDAQ: MCHP | 23% |
| Monolithic Power Systems Inc | NASDAQ: MPWR | 22% |
| Taiwan Semiconductor Manufacturing Co Ltd | NYSE: TSM | 22% |
Source: Bloomberg *Approximate YTD Returns are accurate as of July 29, 2025.
#Why Semiconductor Stocks Matter for Retail Investors
High Growth Potential: Chipmakers are integral to AI, cloud computing, and 5G, which are fueling multi-year tech investment cycles. Semiconductor Design and Manufacturing companies sit at the heart of this transformation, building the foundational technologies that power AI models, smartphones, data centers, and more.
Broad Market Influence: Semiconductors influence broader tech performance. Strong returns in this sector often lift indices like the Nasdaq.
Cyclical Nature: These stocks follow clear boom-bust cycles. Getting in early on a recovery phase can deliver outsized returns.
Innovation-Driven Gains: Companies with exposure to high-margin technologies like advanced packaging and memory chips often outperform.
Diverse Playbook: From high-beta names like ACM Research to dividend payers like Broadcom, the sector offers varied opportunities.
#ACM Research Steals the Spotlight
ACM Research is far outpacing the rest of the field. It specializes in cleaning and packaging equipment used in chip production, two areas seeing heavy reinvestment as manufacturers push into smaller nodes and 3D stacking. While it's a smaller-cap stock, its focus on advanced technologies makes it a high-beta play on the broader semiconductor cycle.
For retail investors, ACMR's volatility comes with risk, but also the potential for continued upside if capital expenditures across the chip industry remain strong.
#AMD and KLA Show Broad-Based Strength
AMD is up 47%, building on its AI and server processor gains. It’s been expanding its footprint in high-performance computing and continues to challenge NVIDIA in GPU and data center markets. AMD’s performance underscores the opportunity in second-tier AI infrastructure plays.
KLA, up 45%, is a supplier of process control and yield management tools. It benefits from rising chip complexity and tight fab tolerances. Investors often overlook this type of “behind-the-scenes” tech, but its role is critical—and profitable—as fabs chase perfection.
Lam Research (LRCX), up 37%, is benefiting from rising demand for advanced etch and deposition tools, key to enabling smaller process nodes and 3D chip architectures. Its strong YTD return reflects renewed investment in leading-edge fabrication.
#The AI and Memory Boom
Micron Technology (MU) is up 33% on the back of stronger memory pricing. After a long downcycle, DRAM and NAND prices are recovering as AI models require massive data storage. Micron, with its scale and R&D edge, is positioned to benefit.
NVIDIA (NVDA) is up 31%, a relatively modest move compared to past years but still a strong showing for a company with a trillion-dollar market cap. It remains the go-to name in AI GPUs, and while its growth rate is stabilizing, it’s doing so from a high base.
Broadcom (AVGO), which recently closed its VMware acquisition, is up 28%. Its performance is helped by strength in networking and custom silicon, plus a steady dividend that attracts income-focused investors.
#Foundries and Fabrication Play Steady
TSMC, up 22%, remains the world's top pure-play chip foundry. It’s less flashy than NVIDIA or AMD, but is essential to nearly every other name on this list. Its stability and scale make it a strategic anchor in any chip portfolio.
Microchip Technology (MCHP) and Monolithic Power Systems (MPWR), up 23% and 22% respectively, serve a variety of embedded and power-efficient chip markets. These names typically fly under the radar but provide stable growth, especially as electronics become more power-sensitive.
#FAQs
Is it too late to invest in chip stocks in 2025?
Not necessarily. While some names have already run up, the semiconductor cycle is long and driven by multi-year trends. Look for opportunities in laggards or those with growing margins.
What risks should retail investors watch for?
Watch for any slowdown in AI infrastructure spending, overcapacity in memory, and rising input costs. Geopolitical tensions, especially around Taiwan, also remain a key risk.
Which chip stocks are best for conservative investors?
Broadcom and TSMC offer more stable earnings and dividends. They’re less volatile than smaller-cap names like ACM Research.
How do I gain exposure without picking individual stocks?
Consider ETFs like SOXX or SMH, which provide broad exposure to the semiconductor space.
What makes a chip stock worth buying?
Focus on gross margin trends, R&D spending, and end-market exposure. Companies investing in AI, automotive, and high-performance computing are especially well-positioned.