2 Elite Semiconductor Chip Stocks to Own After the Tech Crash

AI stocks crashed last week.

Now is not the time to get negative.

In fact, lows could be in for the AI trade.

Here are 2 elite semiconductor chip stocks to own after the tech crash.

Headlines are rattling investor nerves.

Between the midterm blue wave and NVIDIA’s Jensen Huang scandal, the equity fits and starts are difficult to process on the surface.

Here’s where cold hard data comes in handy.

Last week we highlighted the undefeated midterm election signal. Our bullish stance flies in the face of overwhelming negative sentiment.

This against-the-crowd posture is getting reinforced today after another incredibly rare bullish signal fired last Thursday.

The NASDAQ 100 dropped 6.36%, it’s largest daily drop going back to 2020.

It looks nasty…until you study history.

I went back and isolated all daily NASDAQ falls of 6.35% or more.

When you plot all forward returns, you’ll notice the lackluster performance (light blue). This unappetizing return profile is heavily skewed by the dotcom crash where NASDAQ stocks fell for 2 years.

When you plot returns from 2002, the story has a very happy ending.

Since 2002 when the NASDAQ 100 (NDX) falls 6.35% or more in a session:

• 3-months later Tech stocks climb an average of 12.7%
• 6-months later Tech stocks jump an average of 30.2%
• 12-months later Tech stocks were never lower with average gains of 57.7%

This is an incredible backdrop to hunt for oversold opportunities.

Focus on high-quality stocks that have been institutional favorites for years.

The window of opportunity rarely lasts forever.

2 Elite Semiconductor Chip Stocks to Own After the Tech Crash

Data centers need thousands of chips communicating at massive speeds.

Our first elite semiconductor chip stock to own after the tech crash is Broadcom (AVGO). The $1.7 trillion market cap chip giant manufactures high-speed networking technology for hyperscalers.

What makes it interesting is 3-fold.

First, is the recent drawdown in the shares. The stock has fallen 30% from highs, causing an attractive valuation of 17.5 times forward earnings.

When markets wobble, focus on stability.

The second reason to consider Broadcom is the fact that the company gushes free cash.

Their latest quarterly earnings report highlighted how AVGO generated $13.66 billion in free cash flow (FCF).

Zoom out and estimates peg FY 2026 FCF to reach just over $48 billion and FY 2027 FCF estimates stand at just over $85 billion.

That’s the kind of fundamental backdrop that makes sense in a tough tape.

The final reason to consider AVGO shares is the sheer fact that money has been chasing this stock for years.

Institutional investors spend a lot of time accessing the earnings power of companies…when they find a winner, they pounce.

Below on the left reveals the near-term flows for AVGO. Like all AI semiconductor names, it’s been under pressure.

On the right reveals what’s more important. Broadcom has been a top-rated name in our research dozens of times due to powerful technical and fundamental qualities.

Those blue bars are times when AVGO was an Outlier 20 stock…that’s the stairway to heaven formation! 

Pullbacks in great companies are opportunities.

Let’s do another.

The 2^nd elite semiconductor chip stock to own after the tech crash is KLA Corp. (KLAC). The $211 billion wafer fab equipment player provides inspection and process control solutions.

Chips are becoming more advanced and expensive. KLA helps find mistakes early.

The stock has not been immune to the tech selloff with shares down nearly 50% from its recent peak.

At $161, the shares now trade at a forward PE of 25.7 times…a compelling valuation:

When you’re considering owning a stock, look under the hood.

KLA had revenues of $12.2 billion in 2025. Net income stood at $4.5 billion.

Estimates peg 2027 revenues to soar to $18.9 billion with net income surging to $7.5 billion.

That’s super high-quality…

It should come as no surprise that KLAC shares have enjoyed constant institutional support over the years.

It’s an outlier!

Below on the left you’ll note the red outflow signals pressing the stock lower. Off to the right note the longer-term blue Outlier signals showcasing how high-quality KLAC is.

Few stocks have charts like this…this is where the MoneyFlows process shines:

We think the worst is behind us as it relates to the AI trade.

Fear-driven markets eventually heal.

Prior leaders regain strength.

We see this pattern over and over in our data. Whether it was COVID, Tariffs, and other swoons…smart investors will eventually flock to top-quality companies.

Right now, is a huge opportunity that won’t last forever.

Don’t let fear drive your trading.

Plenty of stocks are under accumulation right now.

And the surefire way to make sure you’re on board when the AI infrastructure tide turns higher is to follow the money flows.

Our PRO subscription allows you to spot daily flows and access our weekly Outlier 20 report.

This is the report that has found EVERY SINGLE ONE of our Outlier stocks.

Our PRO (Annual) subscription now includes access to all 11 Frontiers, and their outlier baskets.

2027 is setting up to be a great year.

Upgrade your research today.

AND don’t miss my conversation with Jason Bodner where we dive into many studies signaling that NOW is the time to buy. We offer 3 all-star semiconductor stocks to consider this November.

Enjoy.

***Lastly, join co-founder Jason Bodner LIVE, Nov. 30 – Dec. 2, at the MoneyShow Masters Symposium Sarasota, FL. He’ll be presenting: Why the Midterm Election Historically Brings Epic Rallies – And What to Buy Now.

You don’t want to miss this! Click the image below to reserve your spot.