3 Struggling Semiconductor Stocks with Breakout Potential, According to Wall Street

Artificial intelligence (AI) stocks were a key driver behind the historic rally in tech stocks during the first half of this year, led by semiconductor names like Nvidia (NVDA), Broadcom (AVGO), and Advanced Micro Devices (AMD). With the industry-based VanEck Semiconductor ETF (SMH) boasting an outsized YTD return of 58.7%, it's easy to overlook just how lopsided the performance has been among individual chip stocks.

However, as we head into 2024, a more favorable macro environment for growth-fueled names could help to level the playing field for smaller companies and improve market breadth - especially if the U.S. economy can continue to sidestep a recession as the Fed fights inflation.