3 Beaten-Down AI Chip Stocks Worth a Closer Look After the Sell-Off
Written by Daniel Sparks for The Motley Fool -> Nvidia's revenue grew 85% year over year in its most recent quarter. Advanced Micro Devices expects its revenue growth to accelerate in the second quarter. Broadcom shares fell hard despite 143% growth in AI chip revenue. It's b
Nvidia's revenue grew 85% year over year in its most recent quarter.
Advanced Micro Devices expects its revenue growth to accelerate in the second quarter.
Broadcom shares fell hard despite 143% growth in AI chip revenue.
It's been a brutal stretch for semiconductor investors. Last week, a wave of selling swept through the artificial intelligence (AI) chip sector, erasing about $1.3 trillion of market value from chip stocks in Friday's session alone. Nvidia (NASDAQ: NVDA) fell about 6% that day, and Advanced Micro Devices (NASDAQ: AMD) dropped almost 11%. Broadcom (NASDAQ: AVGO) , whose earnings report earlier in the week helped set off the slide, has lost about a fifth of its value in a week.
And now these stocks are having another bad week so far, building on last week's losses.
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Sharp declines like these can be unnerving. But they can sometimes create opportunities for long-term investors -- especially when the underlying businesses are still posting accelerating growth. And that seems to be the case here.
Even after its pullback, Nvidia remains the most valuable company in the sector, with a market capitalization of about $4.9 trillion as of this writing. Shares of the AI chipmaker are down about 18% from their 52-week high.
