3 Beaten-Down AI Chip Stocks to Consider Buying in the Sell-Off
Yahoo Finance ·
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) will ever pay off -- has dragged the whole chip sector lower, and Friday brought more selling. Sell-offs like this rarely bother to separate strong businesses from weak ones, which is exactly why they can create opportunities. Three beaten-down chip stocks stand out as worth a look right now: Nvidia ( NVDA 1.42% ) , ON Semiconductor ( ON 23.66% ) , and Intel ( INTC 3.20% ) . 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. Start with the most obvious name. Nvidia 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.
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