Semiconductor Market Shift: Top AI Chip Stock Picks for Buying, Holding, and Selling Post-Broadcom Results

Key Points

• Nvidia’s stock is considered undervalued despite a nearly 1,800% increase since October 2022.

• AMD’s revenue rose 44% year-over-year, but its P/E ratio remains high at 132.

• Qualcomm faces declining handset revenue and a shift in focus to new markets, with an overall revenue drop of 1% in fiscal 2026.

Nvidia’s stock is touted as a buy following its impressive growth, which saw quarterly revenues surge from $6.7 billion to $96.2 billion in just four years. The company, which is central to the AI revolution, has a P/E ratio of 28, suggesting its stock remains undervalued despite its significant price increase.

In contrast, Advanced Micro Devices (AMD) has also seen considerable growth, with a 790% rise in stock value since October 2022, driven by its competitive stance in the AI sector and strong revenue performance of nearly $22 billion during the first half of 2026. However, its high P/E ratio raises concerns about potential slowdowns in the AI market.

Qualcomm’s stock faces sell recommendations due to a 9% annual drop in handset revenue and challenges in its chipset business. As it pivots to data center chips and other sectors, the company’s overall revenue declined by 1% in the first three quarters of fiscal 2026, highlighting ongoing uncertainty in its market performance.