4 Surprisingly Cheap Semiconductor Stocks to Buy Now in October (2026)
2026-10-02 04:23
•Parkev Tatevosian, Cfa •The Motley Fool
•••• •••• Axe Cap view
Finding Value in Semiconductor Giants as AI Steams Ahead
A closer look at leading semiconductor stocks reveals selective opportunities amid a tech sector reset.
Semiconductor stocks have long been volatile, but with AI development charging ahead, they’re back in focus. Among the bigger names, Broadcom (AVGO) and Nvidia (NVDA) stand out. Both have solid earnings growth and deep AI exposure. While these names trade at still-high multiples globally, recent selloffs hint at some undervaluation. Qualcomm (QCOM) and Taiwan Semiconductor (TSM) are often compared, but they feel less compelling now. For South African investors, direct exposure is tricky since we lack local semiconductor counters, so the USD/ZAR exchange rate becomes a key barometer. A stronger rand could dull returns in dollar-priced tech shares, so currency moves matter. If the rand weakens on local political or economic stress, it might offset any margin gains from cheap semiconductor valuations. Still, Broadcom and Nvidia offer enough quality to watch closely. This view could be wrong if AI adoption slows more than expected or a global tech downturn deepens, pressuring valuations further. this is just our opinion and not financial advice
Hold a cautious position in Nvidia and Broadcom through USD/ZAR exposure, trimming if the rand shows signs of sustained weakness. Avoid Qualcomm and TSM until clearer growth signals emerge.
- NVDA
- AVGO
- USD/ZAR
- slowing global AI adoption impacting earnings
- rand weakness eroding USD tech returns
6/10
The article highlights four undervalued semiconductor stocks worth considering in October 2026, as AI remains a hot investing trend. While the full list isn't detailed in the provided excerpt, the article compares several major semiconductor players as potential investment opportunities.
Our take is based on reporting first published by The Motley Fool.