Chip stocks have sold off sharply this week, but the indiscriminate selling may be creating opportunities in Nvidia, ON Semiconductor, and Intel. Nvidia shares have fallen about 18% from their 52-week high, yet the company just reported fiscal first-quarter revenue of $81.6 billion, up 85% year over year, and guided for $91 billion in the second quarter. ON Semiconductor tumbled more than 23% on Friday after announcing a $7 billion all-stock deal to acquire Synaptics, but its underlying business is showing a cyclical recovery with first-quarter revenue rising 5% and its AI data center business more than doubling. Intel has surged from a 52-week low near $19 to around $128 as new CEO Lip-Bu Tan's turnaround gains traction, though its foundry business still lost $2.4 billion in the quarter. Among the three, Nvidia appears the most compelling on valuation, trading at about 29 times earnings with a gross margin near 75%.
Intel Corporation
ON Semiconductor Corporation
NVIDIA Corporation
Synaptics Incorporated