2 Stocks to Buy in the Chip Stock Sell-Off
2026-07-17 15:30
•Prosper Junior Bakiny •The Motley Fool
•••••••• ••••••• Axe Capital view
Two Chip Stocks Worth a Look Amid Sell-Off
Geopolitical jitters dragged chip stocks lower, but Nvidia and Marvell stand out for long-term gain.
The recent sell-off in semiconductors on July 13, largely driven by geopolitical issues, has created buying opportunities. Nvidia shines as the GPU kingpin with an expanding footprint in AI infrastructure and a commitment to shareholder returns—trading at a reasonable 24x forward earnings given its growth potential. Marvell Technology, an ASIC specialist, taps into surging demand from giants like Amazon and Google for custom AI chips. Its strong quarterly numbers back this up, signaling momentum ahead. For South Africans, direct exposure via the JSE is limited, but these stories weigh on USD/ZAR sentiment since the semiconductor sector influences global risk appetite and emerging market flows. A stronger dollar or increased risk aversion could hit the rand hard, but continued chip innovation should underpin risk-taking. Watch this space if you’re comfortable with some currency volatility. This view could be wrong if geopolitical tensions escalate further, spooking markets more than expected. this is just my opinion and not financial advice
Buy Nvidia and Marvell for long-term growth but brace for volatility. Use USD/ZAR as a risk barometer and consider hedging if you’re sensitive to rand swings.
- NVDA
- MRVL
- USD/ZAR
- Geopolitical tensions escalating
- A sharp USD rally hurting emerging markets
6/10
Following a chip stock sell-off on July 13 due to geopolitical tensions, the article recommends two semiconductor stocks for long-term investors: Nvidia, trading at attractive valuations relative to its GPU market dominance and AI infrastructure growth potential, and Marvell Technology, a leading ASIC maker positioned to benefit from increasing demand for custom AI chips from hyperscalers like Amazon and Alphabet.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Prosper Junior Bakiny
Categories: Equities, Earnings, Capital Returns, Geopolitics, Technology, AI, Semiconductors, Financials
Tickers: NVDA, MRVL, AMZN, GOOG, GOOGL, GOOGM, GOOGN
Sentiment: Positive - Trading at attractive valuations (24.1x forward earnings) relative to growth potential; undisputed GPU market leader with high switching costs; expanding beyond GPUs into CPUs and broader AI infrastructure; recently increased dividend and committed to returning 50% of free cash flow to shareholders. Leading ASIC maker well-positioned for AI chip demand; strong financial results with record Q1 FY2027 revenue of $2.4B (up 28% YoY) and EPS of $0.80 (up 29% YoY); benefiting from hyperscalers like Amazon and Alphabet developing custom AI chips; expected revenue acceleration in coming quarters.
Keywords: semiconductor stocks, chip sell-off, GPU market, AI infrastructure, ASIC chips, geopolitical tensions, long-term investing
Insights:
- NVDA: Positive: Trading at attractive valuations (24.1x forward earnings) relative to growth potential; undisputed GPU market leader with high switching costs; expanding beyond GPUs into CPUs and broader AI infrastructure; recently increased dividend and committed to returning 50% of free cash flow to shareholders.
- MRVL: Positive: Leading ASIC maker well-positioned for AI chip demand; strong financial results with record Q1 FY2027 revenue of $2.4B (up 28% YoY) and EPS of $0.80 (up 29% YoY); benefiting from hyperscalers like Amazon and Alphabet developing custom AI chips; expected revenue acceleration in coming quarters.
- AMZN: Neutral: Mentioned as a hyperscaler considering selling custom Trainium chips designed by Marvell, indicating strong demand for custom AI chips; serves as a positive indicator for Marvell's prospects rather than direct investment recommendation.