5 Undervalued Semiconductor Stocks You Can Buy Now in July (2026)

Parkev Tatevosian, CFA•Jul 10, 2026

Summary

Parkev believes that while some semiconductor stocks may be in bubble territory, many industry leaders are currently undervalued because their valuations are based on fundamental improvements rather than speculative hype. Parkev notes that the demand for components in AI data centers is creating a massive growth trajectory for companies that can deliver essential hardware. Parkev points out that the current forward price-to-earnings ratios for many of these stocks are at or near historical lows, suggesting that investors have not yet fully priced in their long-term potential.

Parkev highlights five specific companies as prime opportunities:

Micron Technology: Parkev calculates a fair value of $1,503 for Micron, compared to its market price of $925. Parkev argues that the memory market is in a supply-demand imbalance that favors Micron, especially as data center needs increase. Parkev also notes that the company's move toward long-term customer agreements reduces risk and improves visibility for future R&D and capital expenditures.

Taiwan Semiconductor Manufacturing Company: Parkev values TSMC at $611 per share while it trades at $434, representing significant upside. Parkev explains that as the manufacturing partner for Apple and Nvidia, TSMC is seeing record demand and high profit margins. Parkev acknowledges the risks of geographic diversification in Japan and the U.S. but believes high utilization rates will sustain profitability.

Broadcom: Parkev sets a fair value of $507 for Broadcom, which is currently selling for $391. Parkev emphasizes Broadcom's $30 billion partnership with Apple and its role in helping companies like Alphabet and OpenAI create custom proprietary chips (ASICs). Parkev believes this strategy allows tech giants to reduce their reliance on more expensive branded providers.

Nvidia: Parkev identifies a fair value of $313 for Nvidia against a current price of $199. Parkev claims Nvidia is the best growth stock in the Magnificent Seven due to its dominant GPU technology and soaring cash flows. Parkev also points out that Nvidia's forward P/E of 22 is surprisingly low, and Parkev sees future catalysts in robotics and autonomous driving.

Qualcomm: Parkev calculates a fair value of $284 for Qualcomm while it trades at $184. Parkev commends the management's successful expansion into the automotive and premium laptop markets. Parkev is particularly optimistic about Qualcomm's new entry into the data center market through a partnership with Meta Platforms.