Semiconductor stocks have been the primary beneficiaries of the AI boom. As the spending on AI infrastructure development and deployment from leading AI companies, hyperscalers, AI fabs and sovereigns is expected to increase manifold, the prospects for semiconductor companies remain hugely positive.
The semiconductor companies offering compute, scale-out networking, storage, scale-up interconnect, custom AI application-specific integrated circuit chips, optical communication and power delivery chips are benefiting from the huge spending opportunity.
A deeper dive into the physical layer of the AI domain reveals that companies providing high bandwidth memory and advanced packaging are likely to gain tremendously as they remain among the most supply-constrained segments amid the massive demand. Companies building retimers, Compute Express Link, Serializer/Deserializer, optical Digital Signal Processors and Transimpedance Amplifiers are also playing a crucial role.
Similarly, networking and optical connectivity chips represent some of the most structurally expanding opportunities, while power delivery semiconductors and signal-conditioning chips remain relatively overlooked. The global semiconductor sales reached a record $120.6 billion in May 2026, which rose 9.2% sequentially and 104.1% year over year, marking the 15th consecutive month. This is an ideal time to hunt for the most potent and silent winner of the semiconductor arena for July.
Investors looking to benefit from semiconductor companies gaining from the AI boom in July 2026 should consider these stocks: Microchip Technology MCHP, Semtech SMTC, Texas Instruments TXN, Amtech Systems ASYS and Vishay Intertechnology VSH. These stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Our Picks
Microchip Technology is expanding its presence in AI data center connectivity through PCIe Gen6 switches and retimers, which help move data efficiently among processors, accelerators and other components. The company secured six Gen6 switch design wins ahead of its planned production ramp in the fiscal fourth quarter.
In the fourth quarter of fiscal 2026, MCHP’s net sales surged 35.1% year over year, while non-GAAP earnings per share (EPS) increased 25.2%. The Zacks Consensus Estimate for fiscal 2027 revenues and EPS suggests a year-over-year increase of approximately 32% and 88%, respectively. The consensus mark for fiscal 2027 earnings has been revised upward over the past 30 days.
Currently, Microchip Technology sports a Zacks Rank #1 and has a Growth Score of B.
Microchip Technology Incorporated Price and Consensus
Microchip Technology Incorporated price-consensus-chart | Microchip Technology Incorporated Quote
Semtech is benefiting from AI-driven data center networking demand, with FiberEdge supporting 800G deployments and CopperEdge expanding its opportunity as 1.6T ramps begin. Data center sales rose 39% year over year in the first quarter of fiscal 2027, while LoRa and high-end consumer products provide additional growth drivers.
The Zacks Consensus Estimate for fiscal 2027 revenues and EPS suggests a year-over-year increase of approximately 29% and 55%, respectively. The consensus mark for fiscal 2027 earnings has remained unchanged for the past 30 days. Currently, Semtech sports a Zacks Rank #1 and has a Growth Score of B.
Semtech Corporation Price and Consensus
Semtech Corporation price-consensus-chart | Semtech Corporation Quote
Texas Instruments is benefiting from accelerating AI data center demand for analog and power management chips used in servers, networking equipment and power delivery systems. As AI workloads increase rack power density and energy-efficiency requirements, Texas Instruments’ broad power semiconductor portfolio, internal manufacturing scale and 300-millimeter wafer capacity position it to benefit from expanding AI infrastructure investment.
The Zacks Consensus Estimate for TXN’s 2026 revenues and EPS suggests a year-over-year increase of approximately 17% and 41%, respectively. The consensus mark for 2026 earnings has remained unchanged in the past 30 days. Currently, Texas Instruments carries a Zacks Rank #2 and has a Growth Score of B.
Texas Instruments Incorporated Price and Consensus
Texas Instruments Incorporated price-consensus-chart | Texas Instruments Incorporated Quote
Vishay Intertechnology is benefiting from rising AI infrastructure demand for power management components used in servers and data centers. Its portfolio includes high-voltage MOSFETs, capacitors, power inductors and current-sense resistors for AI power supplies and monitoring systems. Growing deployments of 800G and 1.6T networking platforms are also tailwinds for VSH.
The Zacks Consensus Estimate for Vishay Intertechnology’s 2026 revenues suggests a year-over-year increase of approximately 16.7%. The estimate for VSH is pegged at an earnings of 75 cents per share in 2026, indicating an improvement from a loss of 5 cents in 2025. The consensus mark for 2026 earnings has remained unchanged in the past 30 days. Currently, Vishay Intertechnology sports a Zacks Rank #1 and has a Growth Score of B.
Vishay Intertechnology, Inc. Price and Consensus
Vishay Intertechnology, Inc. price-consensus-chart | Vishay Intertechnology, Inc. Quote
Amtech Systems is benefiting from rising AI infrastructure demand for advanced packaging and AI server board assembly equipment. AI-related sales exceeded 30% of thermal processing solutions revenues in the second quarter. Strong bookings, panel-level packaging demand and next-generation equipment investments position Amtech to benefit as AI chips become larger and packaging requirements intensify.
The Zacks Consensus Estimate for Amtech Systems’ fiscal 2026 revenues and EPS suggests a year-over-year increase of approximately 5% and 540%, respectively. The consensus mark for 2026 earnings has remained unchanged in the past 30 days. Currently, Amtech Systems sports a Zacks Rank #1 and has a Growth Score of A.
Amtech Systems, Inc. Price and Consensus
Amtech Systems, Inc. price-consensus-chart | Amtech Systems, Inc. Quote
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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Texas Instruments Incorporated (TXN): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).