Buy the Dip in These 'Strong Buy' Semiconductor Stocks

Semiconductor stocks have been on fire since the start of 2023, primarily due to the artificial intelligence (AI) megatrend. However, the demand for chips across devices such as smartphones, laptops, tablets, and much more has helped the VanEck Semiconductor ETF (SMH) to surge roughly 1,000% in the past 10 years - easily outpacing broader equity indices, such as the S&P 500 Index ($SPX) and Nasdaq Composite ($NASX). 

While market bellwether Nvidia (NVDA) continues to dominate the headlines, the AI megatrend has just begun and should benefit other chip stocks in the upcoming decade. As leaders in the industry pull back ahead of the start of Q2 earnings, pressured by trade concerns with China and a broader rotation into small-caps, now could be an opportune time to scoop up shares of analysts' favorite semiconductor stocks.