3 Semiconductor Stocks to Buy on the Dip

Semiconductor stocks have helped fuel the market rally, led by Nvidia (NVDA), since specialized chips are an essential piece of architecture needed to support the artificial intelligence (AI) boom. However, after Nvidia's forecast for slower - but still robust - revenue growth in its late August earnings report, semiconductor stocks faltered as a group amid growth concerns.

But, just as Fed Chairman Jerome Powell characterized the central bank's 50-basis point rate cut as a “recalibration” of policy, rather than a reaction to a softening economy, the recent pullback in chips could simply present an opportunity to buy stocks at a more reasonable price - rather than signaling the start of a serious fundamental weakening in the market.