4 Undervalued Semiconductor Stocks You Can Buy Now

Parkev Tatevosian, CFA•Jun 19, 2026

Summary

Parkev states that while the rapid rise in semiconductor and AI stocks in 2026 has led to concerns about a market bubble, he believes some undervalued opportunities persist. He highlights four specific semiconductor companies that he sees as excellent investments at their current prices, expecting them to benefit from robust industry demand, particularly from the booming data center market.

**Nvidia:** Parkev finds Nvidia surprisingly undervalued, with a current market price of $209 per share well below his calculated fair value of $309. Despite its massive market capitalization exceeding $5 trillion, which might deter some investors, Nvidia exhibits booming sales, profits, and cash flow. He forecasts its free cash flow to soar from $65 billion in 2025 to an impressive $350 billion by 2030, with most sales already secured. Parkev believes the stock has considerable room for growth, further supported by management's significant share buybacks due to the company's asset-light business model and substantial cash generation.

**Taiwan Semiconductor Manufacturing Company (TSMC):** Parkev considers TSMC an attractive buy at prices below $450 per share, noting its current price of $425 is significantly lower than his $587 fair value. As the leading manufacturing partner for major chip companies like Nvidia, AMD, Intel, and Apple, TSMC's asset-light business model is crucial for the industry. The company is experiencing booming sales and a backlog of demand, indicating it doesn't have enough capacity to meet all orders. Its conservative capacity expansion strategy allows it to command premium prices and operate near full capacity, leading to excellent margins, which Parkev claims are unmatched by any other manufacturing company globally.

**Broadcom:** Parkev recommends Broadcom as another undervalued semiconductor stock, particularly at prices below $400, citing its current trading price of $377 against his fair value of $493. Broadcom is instrumental in creating accelerated computing chips for major clients, including Alphabet's Tensor Processing Units (TPU). It serves as a go-to partner for companies like Alphabet, OpenAI, and Meta Platforms looking to design their proprietary chips to diversify away from Nvidia, thereby offering a valuable risk reduction component when held alongside Nvidia in a portfolio.

**Qualcomm:** Trading at $216 per share, below Parkev's intrinsic value calculation of $274, Qualcomm is identified as undervalued. While its core market is smartphones, which faces headwinds from higher component prices, Qualcomm has successfully diversified into the automotive industry and is showing early success in personal computers. Parkev sees strong potential for Qualcomm's expansion into the data center market, which is the fastest-growing and largest-scale market globally, with hyperscalers projected to spend over $750 billion on data centers in 2026, with further growth anticipated in subsequent years.

Mentioned Stocks

AVGO

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev recommends Broadcom as another undervalued semiconductor stock to buy anywhere below $400; currently priced at $377, well below his fair value of $493. Broadcom helps major customers like Alphabet create accelerated computing chips and proprietary designs, and offers a risk reduction factor when diversifying away from Nvidia.

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NVDA

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev finds Nvidia surprisingly undervalued at $209 per share, significantly below his fair value of $309. Despite its massive market cap, he expects its free cash flow to jump from $65 billion in 2025 to $350 billion by 2030, with sales largely locked in. He believes the stock price has room to move higher, supported by management's significant share buybacks.

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QCOM

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev views Qualcomm as undervalued at $216 per share, below his intrinsic value of $274. Although its smartphone market faces headwinds, Qualcomm is successfully expanding into the high-growth data center market, as well as automotive and personal computers, positioning it to benefit from the massive spending by hyperscalers on data centers.

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TSM

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev recommends TSMC as a very attractive semiconductor stock to buy at market prices below $450 a share; currently trading at $425, which is below his calculated fair value of $587. It is the best manufacturing company in the world, partnering with major chip companies, experiencing booming sales, and has a backlog of demand, allowing it to capture premium prices and achieve great margins due to operating at near full capacity.

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