4 Under-the-Radar Semiconductor Stocks to Buy in 2025

TL;DR

Instead of chasing Nvidia and AMD, this stock pick list favors four smaller semiconductor names with more room to run: Qorvo (QRVO), Rambus (RMBS), Texas Instruments (TXN), plus a display-driver and imaging chipmaker. Each is chosen because its chart just closed above a breakout trend line, signaling early entry before the rest of Wall Street piles in.

Transcript

There is one sector that is breaking out more than any other and is of course the semiconductor, the chip industry. And before you run out and put all your hard-earned money into Nvidia and AMD, which everybody seems to be doing for some reason, I want to give you four stocks that are under the radar that I believe have a much much greater potentia... Read More

Key Insights

• Nvidia is a $3 trillion company, which makes a 10x gain unrealistic because it would have to become a $30 trillion company, so smaller under-the-radar chip stocks are presented as having far greater upside potential over the next six to 12 months.
• Stock price action is treated as more important than fundamentals, with the reasoning that fundamentals only need to be non-horrific to avoid a rug pull, while Wall Street sentiment, expressed through money flows, drives the actual move.
• The breakout method connects recent chart highs with a trend line, waits for the 50-day moving average to poke up, and confirms a close above that trend line, though the setups so far lack the confirming volume because the entry is early.
• The first pick is a semiconductor company specializing in display driver integrated circuits, advanced imaging, and 3D sensors, with strong automotive display share and aggressive expansion into AR/VR display technology.
• That first company brings in roughly $200 million in cash with about half from the automotive sector, has a thermal sensing collaboration with Kumino tapping smart devices and security, and makes ultra low power AI chips that could lift margins.
• Qorvo (QRVO) makes high performance radio frequency solutions essential for mobile communications, 5G networks, and defense systems, holds a multi-year defense contract for RF sensors in radar, and trades in an RF industry that fell 29% versus a positive S&P over the past year.
• Rambus (RMBS) develops and licenses high-speed chip interface, memory, and security IP, reported revenue up 52% year-over-year with licensing billings up 16% and margins near 30%, and its recurring licensing model requires minimal expenditure.
• Texas Instruments (TXN) is a global leader in analog and embedded processing and one of the ten largest semiconductor companies by sales, spends $3.8 billion a year on R&D, and grew revenue everywhere except seasonally weak personal electronics.

Questions & Answers

Q: Why avoid buying Nvidia and AMD for big gains?

Nvidia is already a $3 trillion company, so a 10x gain would require it to become a $30 trillion company, which the presenter says is not going to happen in the next six to 12 months. Nvidia is not considered a bad stock, but because everyone seems to be buying Nvidia and AMD, the search instead is for smaller, under-the-radar semiconductor stocks that have much greater potential to move up.

Q: What four stocks are recommended in this video?

The four semiconductor picks are: a display driver and imaging chip company specializing in display driver integrated circuits, advanced imaging, and 3D sensors; Qorvo, ticker QRVO, which makes radio frequency solutions; Rambus, ticker RMBS, which licenses high-speed chip interface and memory technology; and Texas Instruments, ticker TXN, a leader in analog and embedded processing. All four are in the semiconductor sector, which the presenter says is breaking out more than any other.

Q: What is the breakout chart pattern used to pick these stocks?

The method connects recent chart highs with a trend line, then waits for the 50-day moving average line to start poking up and for the price to close above that trend line. All four stocks recently closed above their breakout lines. The presenter notes the only missing element is more trading volume, which he interprets as a sign of being early to the party rather than late, since heavy volume has not yet arrived.

Q: What does the first semiconductor stock do?

The first pick specializes in display driver integrated circuits and advanced imaging components, including 3D sensors. It has strong market share in automotive displays and is aggressively moving into AR/VR display technology. It is profitable with good cash flow, bringing in around $200 million, with about half coming from the automotive sector. It also has a thermal sensing collaboration with Kumino for smart devices and security, plus ultra low power AI chips that could significantly boost margins.

Q: Why is Qorvo (QRVO) considered an opportunity?

Qorvo is an American semiconductor company specializing in high performance radio frequency solutions essential for mobile communications, 5G networks, and defense systems. It co-develops front-end solutions with major smartphone OEMs and holds a multi-year contract with a key defense agency supplying RF sensors for radar systems, giving recurring revenue. The opportunity is that the radio frequency industry underperformed the S&P 500, falling 29% over the past year while the S&P had positive returns, and the stock has closed above its breakout line.

Q: What makes Rambus (RMBS) attractive to the presenter?

Rambus develops and licenses advanced high-speed chip interface technology, memory solutions, and security IP for data centers, consumer electronics, and automotive. Its high-speed memory interfaces are patent protected and critical for next-generation computing. Revenue was up 52% year-over-year, licensing billings up 16%, and margins ticked up around 30%. The presenter especially likes the licensing model because it produces recurring revenue with minimal expenditure, and he calls its scorecard the best on the list, insanely profitable with insane cash flow.

Q: Why include Texas Instruments (TXN) in the list?

Texas Instruments is a global leader in analog and embedded processing technology and one of the ten largest semiconductor companies in the world by sales volume. Beyond calculators, its chips power switches and critical applications in automotive, industrial, communications, and consumer electronics. It grew revenue across everything except seasonally weak personal electronics, spends $3.8 billion a year on R&D, and has expanded partnerships with major carmakers to supply semiconductors for EVs and autonomous vehicles. Its chart has broken above a modest sideways move, rising 4.9%.

Q: Is this video financial advice, and what free resources are offered?

No, the presenter repeatedly states that none of these are financial advice and that viewers must do their own research. The description reinforces that the content is for informational and educational purposes only and not personalized investment advice. He offers free resources including a masterclass he runs with Winston, a free 15-minute masterclass on Wall Street's rules, a market indicator free for seven days, and downloadable research notes linked in the description with no email required.

Summary & Key Takeaways

• Rather than buying crowded megacaps like Nvidia, a $3 trillion company that cannot realistically 10x, the pitch is for four smaller semiconductor stocks with greater upside. The presenter posts a buy list every Monday for students before purchasing, and offers free research notes and a masterclass linked in the description.

• The first stock makes display driver ICs, imaging, and 3D sensors with strong automotive and AR/VR exposure, roughly $200 million cash, a Kumino thermal sensing collaboration, and ultra low power AI chips. Qorvo (QRVO) supplies RF chips for 5G and defense radar, with its RF industry down 29% against the S&P.

• Rambus (RMBS) licenses high-speed interface, memory, and security IP, posting 52% revenue growth, 16% licensing billing growth, and roughly 30% margins from a recurring model. Texas Instruments (TXN) leads analog and embedded processing, ranks among the top ten chipmakers, spends $3.8 billion on R&D, and each stock recently closed above a breakout trend line.