{"id":556561,"date":"2026-06-27T06:59:10","date_gmt":"2026-06-27T06:59:10","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/556561\/"},"modified":"2026-06-27T06:59:10","modified_gmt":"2026-06-27T06:59:10","slug":"3-beaten-down-ai-chip-stocks-to-consider-buying-in-the-sell-off","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/556561\/","title":{"rendered":"3 Beaten-Down AI Chip Stocks to Consider Buying in the Sell-Off"},"content":{"rendered":"\n

Chip stocks have taken a beating this week. A rotation out of high-flying technology names — driven by mounting doubt about whether the industry’s enormous spending on artificial intelligence (AI)<\/a> will ever pay off — has dragged the whole chip sector lower, and Friday brought more selling. <\/p>\n

Sell-offs like this rarely bother to separate strong businesses from weak ones, which is exactly why they can create opportunities. <\/p>\n

Missed Nvidia in 2009? This Rare Signal Is Flashing Again.<\/strong>\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/strong><\/a> <\/p>\n

Three beaten-down chip stocks stand out as worth a look right now: Nvidia<\/strong> (NASDAQ: NVDA), ON Semiconductor<\/strong> (NASDAQ: ON), and Intel<\/strong> (NASDAQ: INTC). Each is down for its own reasons, and each comes with meaningful risk. But for investors who can stomach the volatility, the weakness may be a chance to buy quality at a discount. <\/p>\n

\"Rows<\/a> Image source: Getty Images. 1. Nvidia <\/p>\n

Start with the most obvious name. Nvidia<\/a> stock has fallen about 18% from its 52-week high as of this writing, slipping back toward $190. Yet the business behind it has rarely looked better. In its fiscal first quarter of 2027 (the period ended April 26, 2026), revenue jumped 85% year over year to $81.6 billion, and data center revenue — the heart of its AI business — climbed 92% to $75.2 billion. And management guided for second-quarter revenue of $91 billion, a sign the growth isn’t slowing yet. <\/p>\n

What makes the pullback interesting is the valuation. After the slide, Nvidia trades at about 29 times earnings — well below the premium multiple it carried for most of the AI boom. For a company still growing this fast, with a gross margin near 75%, that isn’t a demanding price. <\/p>\n

Of course, the stock’s risk is the one weighing on the whole sector: if AI spending cools, Nvidia’s blistering growth could normalize quickly. <\/p>\n

2. ON Semiconductor <\/p>\n

ON Semiconductor didn’t just get caught in the downdraft — it got hammered, falling more than 23% on Friday, to around $91, as of this writing. The trigger was its own news: a $7 billion all-stock deal to buy Synaptics<\/strong> (NASDAQ: SYNA), its largest acquisition ever, meant to push deeper into edge AI and so-called physical AI (intelligence built into everyday devices). <\/p>\n

Because it’s an all-stock deal, it dilutes current shareholders, and investors seemed to balk at the price and the integration risk. <\/p>\n

Look past the one-day drop, though, and the underlying business is turning a corner. After a long slump in demand from automakers and industrial customers, onsemi’s first-quarter revenue (for the period ended April 3, 2026) rose 5% year over year — its first growth in several quarters — while its AI data center business more than doubled. <\/p>\n

Story Continues <\/p>\n

“We exceeded expectations as demand strengthened through the quarter and we have moved beyond the cyclical trough on a path to recovery,” CEO Hassane El-Khoury said in the company’s first-quarter earnings release. <\/p>\n

The stock trades at a price-to-earnings ratio in the 60s. But that figure says more about how depressed profits are at the bottom of the cycle than about a stretched valuation. If the recovery holds, today’s price could look cheap. <\/p>\n

3. Intel <\/p>\n

Intel has been the sector’s great turnaround story. <\/p>\n

The stock has rocketed from a 52-week low near $19 to a high above $141 over the past year as new CEO Lip-Bu Tan’s overhaul gained traction — and this sell-off has only nicked it, with shares easing to around $128. <\/p>\n

And the business behind the run-up is improving: first-quarter revenue rose 7% to $13.6 billion, non-GAAP (adjusted) earnings per share came in at $0.29, and Intel reportedly landed Tesla<\/strong> as the first major customer for its most advanced 14A manufacturing process — a marquee win for its struggling foundry business. <\/p>\n

The catch is that Intel is still profitable only on a non-GAAP basis, and its foundry operation lost $2.4 billion in the quarter — even as its revenue grew. Additionally, after a run this big, the stock already prices in a turnaround that is only partway done. <\/p>\n

Of the three, it may be the most speculative — a bet that Tan can keep the comeback going, not a cheap stock backed by proven profits. <\/p>\n

The bottom line <\/p>\n

Ultimately, none of these three stocks is low-risk, and the sell-off that dragged them down could have further to run if the market’s doubts about AI spending deepen. But some carry more risk than others. Intel asks investors to trust a turnaround that is still unproven and still losing money where it matters most. And ON Semiconductor pairs a genuine cyclical recovery with a big, dilutive acquisition that has yet to prove its worth. <\/p>\n

Nvidia, by contrast, looks like a fast-growing, dominant business whose shares have fallen below the intrinsic value of the underlying business. Sure, it’s still a high-risk stock tied to the same AI cycle as the others. But of these three, it’s the one I like most. <\/p>\n

Should you buy stock in Nvidia right now? <\/p>\n

Before you buy stock in\u00a0Nvidia, consider this: <\/p>\n

The Motley Fool\u00a0Stock Advisor\u00a0analyst team just identified what they believe are the\u00a010 best stocks<\/strong><\/a>\u00a0for investors to buy now\u2026 and\u00a0Nvidia\u00a0wasn’t one of them.\u00a0The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. <\/p>\n

Consider when\u00a0Netflix<\/strong>\u00a0made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $382,359<\/strong>!*\u00a0Or\u00a0when\u00a0Nvidia<\/strong>\u00a0made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $1,201,390<\/strong>!* <\/p>\n

That performance is why people listen. With a track record of\u00a0beating the S&P 500 by 4x<\/strong>,\u00a0Stock Advisor\u00a0offers a distinct advantage. Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built for the long haul. <\/p>\n

See the 10 stocks \u00bb<\/strong><\/a> <\/p>\n

*Stock Advisor returns as of June 26, 2026. <\/p>\n

Daniel Sparks<\/a> has clients with positions in Tesla. The Motley Fool has positions in and recommends Intel, Nvidia, and Tesla. The Motley Fool recommends ON Semiconductor and Synaptics. The Motley Fool has a disclosure policy<\/a>. <\/p>\n

3 Beaten-Down AI Chip Stocks to Consider Buying in the Sell-Off<\/a> was originally published by The Motley Fool <\/p>\n","protected":false},"excerpt":{"rendered":"Chip stocks have taken a beating this week. A rotation out of high-flying technology names — driven by…\n","protected":false},"author":2,"featured_media":556562,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[261],"tags":[291,289,290,100394,18,19,3572,17,292,234082,82],"class_list":["post-556561","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-chip-stocks","tag-eire","tag-ie","tag-intel","tag-ireland","tag-nvidia","tag-on-semiconductor","tag-technology"],"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/556561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=556561"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/556561\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/556562"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=556561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=556561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=556561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}