From Yahoo Finance: 2025-04-30 14:33:00

The global semiconductor market is set to hit $697 billion in 2025, with sales expected to reach $1 trillion by 2030 and potentially double by 2040. Generative artificial intelligence processors have exceeded expectations, reaching over $125 billion in 2024 and driving significant growth in the industry.

While some segments like automotive and IoT-focused chips struggled in 2024, signs of recovery are emerging in 2025. Automotive chips benefit from electrification, while analog and smartphone chips show promise. The recent tech stock selloff has compressed valuations, making semiconductor stocks more attractively priced for investors.

Undervalued players in the memory and semiconductor equipment sectors are gaining attention as demand stabilizes. Automation and IoT technologies are also on the rise, setting the stage for potential re-rating. A list of 10 cheap semiconductor stocks is identified based on low P/E ratios and hedge fund investor activity.

STMicroelectronics N.V. (NYSE:STM) stands out as a leading semiconductor player with a P/E of 13.28 and 22 hedge fund holders. Despite revenue declines, the company is innovating with products like Stellar with xMemory for the EV market. Analyst sentiment is cautiously optimistic, projecting a 27.5% upside potential for STM stock.

STM ranks 7th on the list of cheap semiconductor stocks to buy now, offering market leadership and innovation. While semiconductor stocks hold promise, AI stocks like the cheapest AI stock may deliver higher returns in a shorter timeframe. Investors are advised to explore AI opportunities for potential growth.



Read more at Yahoo Finance: Is STMicroelectronics N.V. (STM) the Cheap Semiconductor Stock to Buy Now?