Got $1,500? 3 No-Brainer Artificial Intelligence (AI) Semiconductor Stocks to Buy Before They Soar Once Again
The semiconductor sector has taken a beating of late, but that is good news for investors looking to buy top chip stocks at attractive valuations.
Got $1,500? 3 No-Brainer Artificial Intelligence (AI) Semiconductor Stocks to Buy Before They Soar Once Again
Overview
Semiconductor stocks were routed last Friday, June 5, with the sector losing a whopping $1.4 trillion in market cap in a single day. The PHLX Semiconductor Sector index shed more than 10% of its value in a single session, driven by a stronger-than-expected jobs report that has led to an increase in the odds of the Federal Reserve raising interest rates this year.
Not surprisingly, major semiconductor names took a big beating. Nvidia (NASDAQ: NVDA) was down by more than 6%, while foundry giant Taiwan Semiconductor Manufacturing (NYSE: TSM) slipped nearly 7%. Even Broadcom (NASDAQ: AVGO), which released a strong set of results on June 3, wasn't immune from the sell-off, falling nearly 8% on Friday.
Details
It won't be surprising to see semiconductor stocks recovering from this pullback. The sector has played a key role in driving the stock market rally in recent weeks, and investors may have decided to book profits after pricing in the potential impact of a strong jobs report on the Fed's policy. However, investors will do well to note that the semiconductor sector's rally has been powered by strong revenue and earnings growth, driven primarily by artificial intelligence (AI)-fueled demand.
Source
Originally published at www.fool.com.
