Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Laser Focus World is part of Endeavor Business Media, a division of EndeavorB2B.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

3 Semiconductor Stocks with Exciting Potential

KLAC Cover Image

Semiconductors are the silicon backbone of the digital revolution. Still, they’re subject to swings in the broader economy because customers often stockpile chips ahead of demand, and investors seem to believe that inventory levels are correcting - over the past six months, the industry has shed 13.6%. This drawdown was much worse than the S&P 500’s 2.4% loss.

Only some companies are subject to these dynamics, however, and a handful of high-quality businesses can deliver earnings growth in any environment. Keeping that in mind, here are three resilient semiconductor stocks at the top of our wish list.

KLA Corporation (KLAC)

Market Cap: $100.1 billion

Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ: KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.

Why Is KLAC a Good Business?

  1. Annual revenue growth of 15.6% over the last five years was superb and indicates its market share increased during this cycle
  2. Highly efficient business model is illustrated by its impressive 35.9% operating margin, and it turbocharged its profits by achieving some fixed cost leverage
  3. KLAC is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders

KLA Corporation is trading at $755.50 per share, or 24x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Nvidia (NVDA)

Market Cap: $3.30 trillion

Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ: NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.

Why Should You Buy NVDA?

  1. Annual revenue growth of 140% over the past two years was outstanding, reflecting market share gains this cycle
  2. Share repurchases over the last five years enabled its annual earnings per share growth of 80.2% to outpace its revenue gains
  3. Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its rising cash conversion increases its margin of safety

At $134.52 per share, Nvidia trades at 28.6x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it’s free.

Impinj (PI)

Market Cap: $3.31 billion

Founded by Caltech professor Carver Mead and one of his students Chris Diorio, Impinj (NASDAQ: PI) is a maker of radio-frequency identification (RFID) hardware and software.

Why Is PI Interesting?

  1. Annual revenue growth of 11.9% over the past two years was outstanding, reflecting market share gains this cycle
  2. Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 49.5% outpaced its revenue gains
  3. Free cash flow margin increased by 23.7 percentage points over the last five years, giving the company more capital to invest or return to shareholders

Impinj’s stock price of $110 implies a valuation ratio of 71.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as ServiceNow (+178% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free.

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