3 Beaten-down Ai Chip Stocks Worth A Closer Look After Th…

1. Nvidia

Even after its pullback, Nvidia remains the most valuable company in the sector, with a market capitalization of about $4.9 trillion as of this writing. s of the AI chipmaker are down about 18% from their 52-week high.

Nvidia’s latest results, reported last month, arguably gave investors little to worry about. In the company’s fiscal first quarter of 2027 (the period ended April 26, 2026), revenue rose 85% year over year to $81.6 billion, driven by 92% growth in data center revenue. And management guided fiscal second-quarter revenue of about $91 billion, implying year-over-year growth of about 95% — an outlook that assumes no data center compute revenue from China.

Nvidia Stock Quote

NASDAQ: NVDA

Nvidia

Today’s Change

(-3.39%) $-7.05

Current Price

$201.14

Key Data Points

Market Cap

$4.9T

Day’s Range

$199.92 – $207.22

52wk Range

$140.85 – $236.54

Volume

6.6M

Avg Vol

165.8M

Gross Margin

74.15%

Dividend Yield

0.14%

“The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed,” said Nvidia founder and CEO Jensen Huang in the company’s fiscal first-quarter earnings release.

Despite this momentum, the stock trades at a price-to-earnings ratio of about 31 as of this writing. For s to recover, AI infrastructure spending may simply need to keep growing at similarly rapid rates — and Nvidia’s own guidance suggests it is.

2. Advanced Micro Devices

AMD s closed at a record $542.52 on June 3 — hours before Broadcom’s report hit — and have since fallen to about $452 as of this writing, a decline of about 17%. Even so, the stock has more than doubled in 2026.

The chip designer’s momentum may help explain that enthusiasm. AMD’s first-quarter revenue rose 38% year over year to $10.3 billion, fueled by 57% growth in the data center segment — a business AMD chair and CEO Lisa Su called “the primary driver of our revenue and earnings growth” in the company’s first-quarter earnings release. Even better, management guided for second-quarter revenue of about $11.2 billion, representing year-over-year growth of about 46% — a meaningful acceleration.

Advanced Micro Devices Stock Quote

NASDAQ: AMD

Advanced Micro Devices

Today’s Change

(-4.63%) $-22.04

Current Price

$453.47

Key Data Points

Market Cap

$738B

Day’s Range

$448.40 – $477.25

52wk Range

$115.06 – $546.44

Volume

Avg Vol

37.3M

Gross Margin

47.09%

Later this year, AMD also plans to ship Helios, its first full rack-scale AI system, with OpenAI and Meta Platforms already lined up as customers.

However, even after the sell-off, the stock trades at more than 100 times its earnings over the past year. A valuation this leaves little room for execution missteps.

3. Broadcom

But Broadcom stock has fallen particularly hard. And the slide interestingly ed a great quarter.

In its fiscal second quarter of 2026 (the period ended May 3, 2026), the custom chip specialist grew revenue 48% year over year to $22.2 billion. AI chip revenue jumped 143% to $10.8 billion, exceeding management’s forecast. Management also guided to about $16 billion in AI chip revenue in the fiscal third quarter and $56 billion for the full fiscal year, and reiterated its more than $100 billion AI chip revenue target for fiscal 2027.

Broadcom Stock Quote

NASDAQ: AVGO

Broadcom

Today’s Change

(-4.86%) $-19.04

Current Price

$373.12

Key Data Points

Market Cap

$1.8T

Day’s Range

$371.13 – $385.66

52wk Range

$244.17 – $495.00

Volume

1.5M

Avg Vol

25.3M

Gross Margin

65.66%

Dividend Yield

0.67%

Part of the market’s concern seems to center on profitability, as the company’s fastest-growing business changes the makeup of its sales. CEO Hock Tan addressed the issue directly.

“Semiconductor margins remain very stable and very solid. It’s the mix, particularly the mix between software and non-AI to the very, very rapidly growing AI semiconductor that is just diluting gross margin,” Tan said during the company’s fiscal second-quarter earnings call.

But there may also have been disappointment that the company only reiterated its more than $100 billion AI chip revenue target for fiscal 2027, rather than raising it.

Are these stocks buys after the sell-off?

Overall, this looks a good entry point for these important AI chip companies.

But there are some significant risks to consider. Valuations across the group still assume years of strong growth, and AI infrastructure spending could decelerate. There’s also competition to consider.

Ultimately, the businesses themselves don’t seem to be the problem. Growth is accelerating at all three. So, I think investors with a long time horizon could find these beaten-down leaders worth a closer look. Given how quickly sentiment shifted this month, however, easing into a position rather than building it out all at once may make sense. After all, who’s to say that this is the bottom of these stocks’ pullbacks?