Chip Stocks to Buy After Their Worst Day Since June

The semiconductor index plunged 6.7% on Oct. 22, its worst session since June, dragging major chip names sharply lower. The Motley Fool argues the damage creates an entry point, because supply constraints, not weak demand, triggered the selling.

The strongest evidence comes from Lam Research (LRCX), which reported record revenue and expects industry equipment spending to top $200 billion by 2027. Equipment demand sits upstream of chip production, so a long-range spending forecast that large reads as a vote of confidence in the cycle, not a warning sign.

Micron (MU), AMD (AMD), and Marvell (MRVL) all saw their shares fall, yet none cut guidance. That divergence matters: price action turned sharply negative while company-issued outlooks stayed positive. Interpretation: when a sell-off outruns fundamentals and no management team lowers its forecast, the move looks more like repricing around supply worries than a change in the demand picture. That is an analytical read of the evidence, not a confirmed trend.

The thesis rests on one distinction. If the constraint is on the supply side, it can limit near-term output without erasing the order books that LRCX, MU, AMD, and MRVL are building against.