3 AI Chip Stocks to Buy as the Sell-Off Continues
The chip sector sell-off has created some nice buying opportunities.
Overview
While temperatures have been scorching across much of the U.S., AI chip stocks have cooled off, with the sector facing increased selling pressure this summer. The dip appears largely centered on concerns that AI infrastructure spending could slow. However, hyperscalers have largely indicated that their capital expenditures will only increase next year, and Bank of America recently projected that worldwide, cloud and AI data center capex will jump by 40% to 50% year over year to around $1.5 trillion in 2027.
With data center infrastructure spending still booming, this pullback could be a great chance to scoop up these three AI semiconductor stocks.
Details
Nvidia (NASDAQ: NVDA) remains the king of AI infrastructure, and following the pullback, it trades at just 15 times analysts' estimated earnings for its fiscal 2028 (which ends in January 2028). That's a bargain for a company that is still delivering rapid revenue growth, including 85% growth last quarter.
Source
Originally published at www.fool.com.