- Savvy investors are turning to AI supply chain specialists amid the ongoing tech rally.
- With strong YTD gains and analyst targets well above current levels, these under-the-radar chip stocks are set for strong growth.
- Below is a closer look at why these three companies represent solid buying opportunities amid the current market backdrop.
While Nvidia (NASDAQ:), and other GPU giants dominate headlines in the AI boom, savvy investors are quietly turning to specialized analog and mixed-signal semiconductor plays that power the everyday devices and infrastructure enabling AI at the edge.
These companies fly below the radar but stand to benefit significantly from the proliferation of AI-powered PCs, smartphones, voice assistants, connectivity solutions, and even next-gen hearing aids.
Here are three compelling under-the-radar chip stocks, each with strong ties to the AI ecosystem, attractive positioning in the current environment, and solid year-to-date momentum.
1. Cirrus Logic
- YTD Performance: +44.5%
- Market Cap: $8.7 Billion
Cirrus Logic (NASDAQ:) stands out as a vital player in the AI hardware ecosystem, supplying advanced mixed-signal processing solutions and premium audio chips for smartphones, AR/VR devices, and automotive entertainment. Its deep partnership with Apple underscores its strategic importance.
Source: Investing.com
Shares are up a robust 44.5% year-to-date (from a 2025 year-end close of $122.52 to $171.22 as of Tuesday evening), reflecting strong product mix improvements and AI momentum.
With a rock-solid balance sheet featuring over $1 billion in cash and no debt, consistent share repurchases, and upgraded estimates tied to AI PC adoption, Cirrus Logic stands as a strong buy. Notably, the InvestingPro AI models forecast a +5.2% potential upside, which would take shares closer to $180.
Source: InvestingPro
With a forward P/E of 17.5x and a PEG ratio of just 0.39, the stock’s valuation is extremely attractive given an EPS forecast CAGR of 16.3% and a net income margin of 17.5%. The company’s solid free cash flow yield of 8.6% and return on equity of 17.6% further cement its case as a cash-generating growth engine.
2. Qorvo
- YTD Performance: +14%
- Market Cap: $8.9 Billion
Qorvo (NASDAQ:) is a key provider of RF solutions and connectivity chips that are fundamental to everything from 5G smartphones to IoT infrastructure. The company is diversifying into AI data centers with power management and precision timing solutions, alongside defense and automotive applications.
Source: Investing.com
Shares have gained a more modest 14% year-to-date (from a 2025 year-end close of $88.07 to $96.35 as of last night). This lag creates a compelling entry point for investors betting on AI’s expanding need for RF infrastructure.
Despite recent headwinds in the smartphone market, Qorvo beat Q4 expectations with a $1.69 EPS (vs. $1.21 forecast) and is set to benefit from an ongoing merger with Skyworks Solutions, promising $500 million in annual cost synergies and deeper customer ties.
Source: InvestingPro
Analysts see a path for significant multiple expansion as earnings accelerate through 2026 on the back of 5G and AI-driven demand. The current Wall Street price target sits at $88.93 (with a high of $128.00), and the fair value upside is a compelling +20.1% as per the quantitative models in InvestingPro.
3. Knowles
- YTD Performance: +55.3%
- Market Cap: $2.85 Billion
Knowles Corporation (NYSE:) may not be a household name, but its specialty audio components, medtech microphones, and high-performance capacitors are vital for AI-driven devices in healthcare, industrial, and communications sectors. The company’s focus on precision devices and medtech gives it a differentiated edge compared to more smartphone-centric chipmakers.
Source: Investing.com
Knowles boasts the strongest YTD performance of the trio, up an impressive 55.3%, a sign that the market prizes KN’s exposure to non-consumer, high-reliability AI applications. The company boasts a perfect Piotroski Score of 9, indicating financial strength, and analysts forecast 8.3% revenue growth for 2026.
Not surprisingly, analyst sentiment remains bullish, with a consensus “Strong Buy” rating and price targets as high as $39.00, which is about +17% above recent trading levels.
Source: InvestingPro
With strong cash flow, a renewed strategic focus, and robust demand from AI-driven end markets, Knowles is positioned as a high-beta, high-reward bet for those who believe the AI hardware cycle has room to run.
Bottom Line
These three companies are crucial nodes in the AI supply chain. While each faces unique risks, their strong fundamentals, analyst support, and direct role in enabling AI-powered hardware make them compelling, if underappreciated, growth stories in the current rally.
As always, be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading.
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Disclosure: This is not financial advice. Always conduct your own research.
At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF, and the Invesco QQQ Trust ETF. I am also long on the Technology Select Sector SPDR ETF. I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
