3 Semiconductor Stocks to Buy Before August Ends
3 Semiconductor Stocks to Buy Before August Ends
Joel South Sat, August 22, 2026 at 11:00 AM UTC
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24/7 Wall St.Quick Read -
NVDA guided Q2 revenue to $91 billion; AVGO projects Q3 AI semiconductor revenue of $16 billion, up 200% year over year.
Lisa Su projects AMD data center revenue to more than double in 2027, with shares down 14% despite a 120% year-to-date gain.
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August is closing with the AI infrastructure trade wobbling but intact. All three of the dominant AI silicon names have pulled back over the past week even as their most recent earnings reports and forward guides pointed to demand that keeps expanding. For investors who missed the summer entries, the final stretch of the month offers a cleaner setup ahead of NVIDIA's fiscal Q2 earnings report and Broadcom's fiscal Q3 report. Here are three semiconductor stocks worth putting on the short list before August ends.
NVIDIA: The AI Factory Buildout Still Has Room to Run
NVIDIA (NASDAQ:NVDA) closed Thursday at $214.72, down 4.64% on the week but still up 15.27% year to date and 22.87% over the past year. The pullback lands just ahead of what is arguably the most important report of the season.
The bull case has not softened. In Q1 fiscal 2027, NVIDIA delivered non-GAAP EPS of $1.87 against a $1.7738 consensus, with revenue of $81.615 billion growing 85.23% year over year. Data Center revenue reached $75.246 billion (up 92%) and Data Center networking nearly tripled to $14.8 billion. Management guided Q2 revenue to $91.0 billion, plus or minus 2% with 75.0% non-GAAP gross margin, and authorized an additional $80.0 billion in buybacks.
CEO Jensen Huang framed the setup on the last call: "Demand has gone parabolic. The reason is simple. Agentic AI has arrived." He also said NVIDIA has "full confidence in the $1 trillion in Blackwell and Rubin revenue we foresee from 2025 through calendar 2027."
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
The 247 model targets $269.52 on a base case (upside of 25.52%) with 0.9 confidence, and the analyst target sits at $304.12. Risk: the Q2 outlook excludes Data Center compute revenue from China, and valuation remains rich at a P/E of 43.
NVDA Price Target — 24/7 Wall St.Broadcom: A Q3 Earnings Report Set Up as an August Catalyst
Broadcom (NASDAQ:AVGO) is the trickier setup: shares at $368.45 are down 7.15% over the past month even though the fiscal Q3 report is the near-term catalyst. Over one year, the stock is still up 28.16%.
Q2 fiscal 2026 saw non-GAAP EPS of $2.44 against a $2.3972 estimate, extending the beat streak to eight consecutive quarters. Revenue was $22.187 billion, up 47.87%, and AI semiconductor revenue was $10.80 billion, up 143%. Free cash flow was $10.262 billion, or 46% of revenue.
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What matters now is the Q3 setup. Broadcom guided consolidated revenue to $29.4 billion, up 84% year on year and AI semiconductor revenue to $16 billion, up over 200%. AI bookings in Q2 were over $30 billion, and CEO Hock Tan told the Street: "Demand for XPUs and networking is simply insatiable." Broadcom also reiterated fiscal 2027 AI semiconductor revenue in excess of $100 billion, with visibility Tan said "runs all the way to 2028 right now."
Base-case model output points to $398.25 over the next year with 8.09% upside, while the analyst target sits at $527.88. Risk: hyperscaler customer concentration and VMware-related debt remain the two structural overhangs, and the coming earnings report carries elevated expectations after a run-in that pulled forward gains.
AMD: Data Center Momentum Meets a Reset Entry
Advanced Micro Devices (NASDAQ:AMD) has the most dramatic year-to-date chart of the three: shares at $473.25 are up 120.98% for the year and 189.08% over 12 months, yet down 14.32% in the past month. That combination is the buyable version of a leader taking a breather.
Q2 fiscal 2026 delivered non-GAAP EPS of $1.66 versus a $1.6107 estimate. Revenue of $11.536 billion rose 50.11%, and Data Center revenue of $6.718 billion more than doubled, growing 107% and now representing 58% of the company. Non-GAAP gross margin expanded to 56% from 43% a year earlier. Management guided Q3 revenue to approximately $13 billion, plus or minus $300 million, or about 41% year-over-year growth.
The forward story is Helios and MI450. CEO Lisa Su said "Customer pull for Helios is very strong and tracking ahead of our initial forecasts" and that Anthropic will deploy up to two gigawatts of MI450 series GPUs in Helios, with deployment of the first gigawatt beginning in the first half of 2027. She raised the 2027 bar: "We now expect data center segment revenue to more than double year-over-year in 2027."
The 247 model shows a base case of $623.35, or 31.72% upside, with an analyst target of $614.43. Risk: the trailing P/E of 178 only works if the 2027 acceleration lands as guided, and Gaming revenue fell 31% year over year, leaving the AI ramp doing all the heavy lifting.
How These Three Fit Together
The three names cover the AI silicon stack from different angles: NVIDIA on merchant GPUs and the CUDA moat, Broadcom on custom XPUs and the networking layer, and AMD as the credible number-two GPU platform layering in Helios rackscale systems. Each has beaten recent estimates, each has guided strong Q3 growth, and each has taken a summer dip that resets sentiment ahead of the next set of catalysts. The silicon is only half the trade, of course. The power, cooling, and networking suppliers behind the data centers are the other half, and we pulled seven of them into a free AI infrastructure report here. The next two earnings reports, NVIDIA's fiscal Q2 earnings report and Broadcom's fiscal Q3 update, will set the tone into the fall.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Contact editorial@247wallst.com for any questions or corrections.
Source: “AOL Money”
