Before chip stocks soar again, foreign media named the "third gear" and now is the best time to buy.

Semiconductor stocks hit a selloff. (schematic diagram)

[Financial Channel/Comprehensive Report] Semiconductor stocks have encountered a wave of selling. Foreign media The Motley Fool reported that now is the best time to buy before chip stocks soar again, and recommended Huida, Broadcom and Micron Technology as the most promising.

The current sell-off in the chip industry, which plays a central role in applications ranging from artificial intelligence to smartphones, computers, cars and factories, is overdone. Bank of America estimates that U.S. semiconductor industry revenue alone could reach $3.2 trillion by 2030, up from about $1.7 trillion this year. So, after the recent pullback, now is a good time to buy some quality stocks in the sector.

Huida and Broadcom are two top semiconductor companies taking advantage of artificial intelligence-driven demand for chips. Both companies have experienced solid growth recently, and the good news is that they expect that growth to continue in the future.

Huida's management pointed out in its August earnings call that it expects revenue to grow 70% in fiscal 2028. Considering that Huida's revenue in fiscal year 2027 (ending January next year) is expected to grow by 90% to nearly US$412 billion, its performance guidance is quite eye-catching. The company expects earnings per share (EPS) to grow 95% in fiscal 2027 and 71% in fiscal 2028.

Broadcom expects revenue from its artificial intelligence business to double in the next few fiscal years. Strong market demand for Broadcom's customized artificial intelligence processors and network chips will drive its artificial intelligence semiconductor revenue to US$58 billion in the just-ended fiscal year 2026, an increase of 186% from the previous year. The company predicts that artificial intelligence semiconductor revenue will reach US$230 billion in fiscal 2028, almost four times this year's artificial intelligence revenue.

The memory market is expected to continue growing, so buying Micron stock is a smart move. Micron Technology's revenue and profits have grown exponentially due to huge demand for memory chips and the ensuing supply shortage.

Micron's rival SK Hynix recently pointed out that the memory shortage problem will not disappear until at least 2030, driven by strong demand for emerging artificial intelligence applications such as artificial intelligence data centers and humanoid robots. Therefore, SK Hynix expects memory demand to continue to exceed supply until the end of the decade.

This is undoubtedly good news for Micron Technology stock investors, especially considering that the current price-to-earnings ratio of 12 times is extremely attractive. Micron Technology has a 24% share of the dynamic random access memory (DRAM) market and a 15% share of the NAND flash memory market, which puts it in a very good position to maintain the steady growth it has experienced over the past few years.

Micron Technology's median 12-month price target is $1,575, which implies 89% upside from current levels. Savvy investors could consider taking advantage of Micron's recent pullback to buy this high-growth stock at an attractive valuation, as it could make them even richer amid the long-term growth of the memory market.