Got $1,000? 2 Magnificent Artificial Intelligence (AI) Stocks Down Over 15% to Buy Hand Over Fist
2026-07-14 10:15
•Keithen Drury •The Motley Fool
••••• •••• Axe Capital view
AI Chip Stocks: A Rare Chance on Micron and Broadcom
Two semiconductor giants powering AI innovation have dropped more than 15%—potential entry points worth watching.
Micron and Broadcom have both pulled back sharply after strong runs, with shares down over 15% from their highs. Micron benefits directly from the AI-driven surge in memory chip demand, particularly for data centers. With revenue expected to surge 81% by 2027, their growth is not hype-based but grounded in clear fundamentals. Broadcom, while less obvious from a South African lens, is ramping up AI chip production through custom deals with hyperscale cloud providers, aiming for $100 billion in AI semiconductor revenue in five years. For local investors, the link to the rand and our tech exposure is indirect, but meaningful. A stronger USD typically boosts these companies’ reported earnings when translated back into ZAR. That said, these stocks are US-listed and tech remains volatile, especially with chip supply chains still prone to disruptions and geopolitical complexities. If AI enthusiasm cools or rivals like Nvidia outpace innovations, these calls could backfire. Still, for patient investors, this dip in proven AI plays offers a compelling entry point. this is just my opinion and not financial advice
I would start building positions in Micron for direct exposure to AI memory demand and add Broadcom selectively, keeping an eye on USD/ZAR moves that could affect returns. Avoid chasing Nvidia or AMD here without better pricing.
- Micron Technology (MU)
- Broadcom (AVGO)
- USD/ZAR
- AI hype fading faster than growth materializes
- Supply chain interruptions or geopolitical issues impacting chip makers
6/10
The article recommends buying Micron Technology and Broadcom as both AI semiconductor stocks have declined over 15% from their all-time highs. Micron benefits from surging memory chip demand for AI data centers with expected 81% revenue growth in FY2027, while Broadcom is positioned to generate over $100 billion in AI semiconductor revenue by 2027 through custom chip partnerships with hyperscalers.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Keithen Drury
Categories: Equities, Earnings, Technology, AI, Semiconductors
Tickers: MU, AVGO, NVDA, AMD
Sentiment: Positive - Strong tailwinds from AI-driven memory chip demand expected to persist beyond 2027; FY2027 projections show 81% revenue growth and EPS near $150; management confirms market tightness will continue, supporting long-term growth potential. Positioned as a major player in custom AI chip design with partnerships from leading hyperscalers; expects $100 billion in AI semiconductor revenue by 2027 (up from $10.8 billion recently); Wall Street projects 67% revenue growth this year and 62% next year.
Keywords: artificial intelligence, semiconductor stocks, memory chips, AI data centers, custom AI chips, buying opportunity, revenue growth
Insights:
- MU: Positive: Strong tailwinds from AI-driven memory chip demand expected to persist beyond 2027; FY2027 projections show 81% revenue growth and EPS near $150; management confirms market tightness will continue, supporting long-term growth potential.
- AVGO: Positive: Positioned as a major player in custom AI chip design with partnerships from leading hyperscalers; expects $100 billion in AI semiconductor revenue by 2027 (up from $10.8 billion recently); Wall Street projects 67% revenue growth this year and 62% next year.
- NVDA: Neutral: Mentioned as a competitor to Broadcom in AI chip design space; no specific positive or negative commentary provided in the article.