3 Semiconductor Stocks to Buy While They Are Down in June

Key Points:

• Semiconductor stocks faced a sharp decline in early June 2026 after Broadcom's Q3 AI revenue guidance of $16 billion missed analyst expectations of $17.2 billion, triggering a 10% drop in the PHLX chip index and wiping out $1.3 trillion in sector market value.
• NVIDIA shares fell 26% below their 52-week high but remain up 39% year-over-year, supported by strong Q1 FY27 results with 85% revenue growth and bullish analyst sentiment, though risks include zero China data center revenue guidance and potential export control impacts.
• AMD's stock dropped 17% in a week, trading 12% below its 52-week high despite a 111% year-to-date gain; strong Q1 2026 revenue growth and a significant Meta GPU deployment deal underpin optimism, while high valuation multiples and export controls pose risks.
• Broadcom experienced the steepest pullback, down 22% in a week and 5% below its 52-week high, despite robust Q2 FY26 revenue growth and AI semiconductor sales; the selloff was driven by cautious AI revenue guidance and margin concerns, with analyst sentiment remaining strongly bullish.
• The sector's near-term outlook hinges on hyperscaler capital expenditure trends and potential changes in export policies related to China, as companies maintain strong growth guidance despite recent valuation compression.