3 AI Chip Stocks Down 15% or More to Buy Right Now

AI chip stocks have been volatile this year as investors weigh the enormous amount of spending going toward AI infrastructure and how sustainable it is. However, with cloud computing companies seeing strong returns on their AI chip and networking investments with quick payback periods and locked-in contracts, it appears that this robust spending will continue.

Let's look at three AI semiconductor stocks that are off 15% or more from their highs to buy right now.

1. Broadcom

Down 23% from its highs set this spring, Broadcom (NASDAQ: AVGO) looks like one of the most attractive chip stocks to buy on the dip. The company is a leader in data center networking and custom AI ASICs (application-specific integrated circuits) and has a significant growth opportunity ahead.

Broadcom helped Alphabet develop its powerful Tensor Processing Units (TPUs), which are set to be a major growth driver for the company. Alphabet is spending aggressively on growth capital expenditures (capex) this year and has indicated it plans to spend significantly more next year. This should feed directly into Broadcom's TPU and networking business. Meanwhile, Alphabet has even let Anthropic place TPUs directly with Broadcom, adding another growth driver.

Given the success of TPUs, other hyperscalers have also turned to Broadcom to help them create their own custom AI chips. Broadcom has projected it will see more than $100 billion in ASIC revenue in fiscal 2027, while Citigroup estimates that will rise to $180 billion in fiscal 2028.

With the stock trading at below 20 times fiscal 2007 analyst earnings estimates, the stock is a buy on this pullback.

2. AMD

Advanced Micro Devices (NASDAQ: AMD) has been a hot stock in 2026, but the recent chip pullback has left it about 18% off its highs. That makes it a great time to jump into a stock that is riding two of the biggest trends in AI: inference and agentic AI.

After losing to Nvidia in AI model training, AMD is making sure it will grab a piece of the larger and faster-growing inference segment. It formed two large partnerships with OpenAI and Meta Platforms centered around inference, which helped give AMD a strong foothold in this market. At the same time, through its chiplet design, which can package more memory, and deals to acquire memory optimization company MEXT and inference chip company Taalas, AMD is aggressively looking to position itself as a leader in this market. It also smartly teamed up with Cerebras for a disaggregated system where its graphics powered unit (GPU)-powered Helios solution will handle the pre-fill phase more cheaply, with Cerebras' more expensive technology reducing latency.

On top of that, as a leader in server central processing units (CPUs), AMD is also set to ride the wave in agentic AI. AI agents are creating a huge need for advanced CPUs, and AMD sees this becoming a $220 billion market in the next few years. With the company riding both these trends, it's time to buy the dip.

Image source: Getty Images.

3. SK Hynix

Down around 20% from its high following its initial public offering (IPO) this year, SK Hynix (NASDAQ: SKHY) is a top memory stock to grab on the pullback. The Korean company is one of the big three DRAM makers and the market share leader in high bandwidth memory (HBM).

HBM is currently the driving force in the memory market, as GPUs and other AI chips require this specialized form of DRAM (dynamic random-access memory) to reduce latency and optimize performance. However, a combination of factors, including HBM requiring upwards of three times the wafer capacity and ordinary DRAM, is keeping capacity tight, while demand continues to grow.

With long-term deals in place and as the main supplier of HBM to Nvidia, SK Hynix looks like the best-positioned memory maker over the long term. It sees the market being imbalanced until at least 2030, although there is a good chance this supercycle lasts much longer. With a forward price-to-earnings (P/E) around 6 times, the stock looks like a buy on this dip.

Citigroup is an advertising partner of Motley Fool Money. Geoffrey Seiler has positions in Advanced Micro Devices, Alphabet, and Broadcom. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Broadcom, and Nvidia. The Motley Fool has a disclosure policy.