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Barchart
Barchart
Aditya Raghunath

Wall Street Is Having a ‘Chips and Dip’ Moment. Here Are the Top 3 Semiconductor Stocks to Buy Here.

Semiconductor stocks are experiencing volatility this month, but investment firm Citi says there's likely more upside to come, and any dips should be bought. Despite recent selling pressure from tariff concerns and mixed earnings, the Philadelphia Semiconductor Index ($SOX) should recover, driven by artificial intelligence (AI) strength and data points showing the analog recovery remains in its infancy.

Citi's top pick is Microchip Technology (MCHP), alongside “Buy” ratings on Texas Instruments (TXN) and Analog Devices (ADI). These three stocks represent compelling opportunities as analog companies guided third-quarter sales up 6% quarter-over-quarter (QoQ) on average, with the analog upturn driven by low inventory, depressed margins, and improving demand.

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