Image Source: Pexels
 

An Introduction

Fabless semiconductor companies design and sell hardware devices and semiconductor chips themselves while outsourcing their fabrication (i.e. are fabless) to a specialized manufacturer and there are only 6 such pure-play fabless semiconductor companies trading on U.S. stock exchanges. said stocks were UP 13.1% in May, UP 13.8% in June and are now UP 14.9% YTD.   
 

The MunAiMarkets Pure-Play Fabless Semiconductor Companies Portfolio: UP 13.8% in June

The 6 stocks are outlined below as to their stock performances in June (month ending June 27th), in descending order along with any recent news, analyses and/or commentary on them where available:

1. Advanced Micro Devices (AMD): UP 29.9% In June
   • The rally was powered by a potent mix of:
     • product breakthroughs: unveiled its Instinct MI350 series which boasts up to 4x performance gains in AI inference workloads and announced the upcoming MI400 series, which promises rack-scale AI solutions which would be a direct challenge to Nvidia’s dominance;
     • bullish analyst upgrades: a couple of brokerages increased their price targets and upgraded their ratings to “Strong Buy” based on AMD’s growing traction with hyperscalers and its expanding AI software stack as key competitive advantages;
     •  new collaborations: expanded its collaborations with HCLTech and DigitalOcean which will expand its reach in AI PCs and cloud GPU services going forward; and
     • strong financials: in Q1 reported gross margins of 50% GAAP, and net income of $709 million both of which reinforced the company’s financial strength.
2. Marvell (MRVL): UP 28.2% In June
   • The rally was powered by:
     • strong Q1 earnings and guidance: posted Q1 revenue that beat expectations and management issued bullish Q2 guidance, citing strength in AI, cloud, and electro-optics segments;
     • analyst upgrades and price target hikes: several analysts raised their price targets citing Marvell’s expanding AI pipeline and improving fundamentals and have a consensus rating of "Strong Buy"; and
     • strategic design wins: secured multi-billion-dollar custom silicon design wins, especially in the data center space which validated its strategy of building tailored AI infrastructure for hyperscalers like Amazon and Google.
3. Nvidia (NVDA): UP 16.7% In June
   • Here's what powered the rally:
     • record-breaking earnings: Q1 2025 revenue surged 69% YoY and its current 36x forward earnings was seen as reasonable compared to other AI leaders, attracting institutional flows;
     • innovation pipeline: unveiled an aggressive roadmap of annual chip architecture releases, including Blackwell Ultra (2025) and Vera Rubin (2026); and 
     • competitive moat: Nvidia's proprietary CUDA software platform continues to lock in developers and customers, reinforcing its competitive moat.
4. Broadcom (AVGO): UP 11.3% In June
   • Here’s what drove the surge:
     • excellent earnings: Q2 revenue was up 20% year-over-year, beating expectations;
     • positive guidance: AI growth expected to be sustained into FY 2026 which has been a huge confidence booster for investors;
     • software growth: the acquisition of VMware showed strong traction in software revenue helping the Company diversify beyond semiconductors; and
     • increased stock price targets and rating: analysts at Bernstein and SocGen raised their price targets  and maintained an “Outperform” rating implying more upside ahead.
5. Monolithic Power (MPWR): UP 11.2% In June
   • Here's what powered the move:
     • strong earnings: MPWR reported robust earnings growth and expanding margins, reinforcing its reputation for consistent execution and its forward P/E of ~40 is seen as reasonable given its growth profile and 90%+ gross margins;
     • dividend increase: the company declared a $1.56 per-share dividend for Q2 2025, payable July 15, signaling confidence in its cash flow and long-term outlook; and
     • AI momentum: As demand for AI infrastructure surged, investors rotated into high-margin, capital-light chipmakers like MPWR that benefit from the AI boom without the heavy capex (capital expense) of foundries.
6. Qualcomm (QCOM): UP 9.2% In June
   • Here's what fueled the increase:
     • solid Q2 earnings: revenue was up 17% YoY, and, given its 55%+ profit margin and low valuation (current P/E is 13.5), is seen as a potentially undervalued opportunity in the semiconductor space by many analysts;
     • positive analyst price target and rating: The 26 analysts that cover QUALCOMM stock have a consensus rating of "Buy" and an average price target which represents a forecasts a 15.6% increase in the stock price over the next year;
     • increased quarterly dividend: going forward the increased dividend and strong free cash flow, QCOM has, and should continue to attract income-focused investors looking for stability in this volatile tech market; and
     • sector rotation: benefited from investors rotating into capital-light, high-margin fabless firms such as QCOM.

Summary

The MunAiMarkets Pure-Play Fabless Semiconductor Companies Portfolio was UP 13.8% In June and is now UP 14.9% YTD.

More By This Author:

Update; Pure-Play Semiconductor Foundries Portfolio Continued To Soar In June
Update: Pure-Play Quantum Computing Stocks Portfolio Only Up 7% In June
Update: AI Hardware (Semiconductor) Segment Up 13%, On Average, In June