Chip Stocks Are Falling: Here Are 2 to Buy on the Dip
Focus on the long game.
Overview
The semiconductor sector is experiencing a modest sell-off. Many leading chipmakers have seen their shares plunge over the past week -- or in some cases, in the past month. What's going on? Some investors wonder whether artificial intelligence (AI) infrastructure spending will continue to rise. If it doesn't, now is as good a time as any to take some profits on those corporations that have already capitalized on it. Meanwhile, mounting competition from China-based companies is another factor behind the recent sell-off. Despite all that, several chip stocks are worth investing in right now and holding onto through the next five years. Let's discuss two examples: Advanced Micro Devices (NASDAQ: AMD) and Marvell Technology (NASDAQ: MRVL).
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Advanced Micro Devices is a leader in the server CPU (Central Processing Unit) space and has a presence in the GPU (Graphics Processing Unit) market as well. Although the tech leader hasn't posed much of a challenge to Nvidia in the GPU industry, it has still benefited from soaring GPU demand. It could continue doing so, especially as companies increasingly seek to diversify away from Nvidia's hardware. AMD recently signed a deal with Anthropic, a leading developer of large language models and the company behind the AI assistant Claude. Anthropic plans to deploy up to 2 gigawatts' worth of AMD's chips to train and run AI models.
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Originally published at www.fool.com.