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5 Chip Stocks to Buy Now

When the Street runs red with the blood of innocent stocks, it's time to put your scuba gear on. Diving for deals in a total market panic is the best way to buy low and set you up for selling high when things go back to normal.

In the chip sector, the values run deeper than almost anywhere else. Capital IQ identifies 86 stocks with market caps over $500 million in the sector -- and a stunning 84 of them have lost value over the last 30 days. The two exceptions are LED lighting specialist Cree (Nasdaq: CREE  ) on a terrific earnings report and Volterra Semiconductor for much the same reason.

Every other chip-related stock fell victim to the credit downgrade, European risks, or some other perceived calamity. While some drops were richly deserved, there are plenty of deep discounts here with nothing to blame but this crazy market. Let's look at a few tremendous examples.


1-Month Return

CAPS Rating (out of 5)

Semtech (Nasdaq: SMTC  ) (21%) *****
TriQuint Semiconductor (Nasdaq: TQNT  ) (22%) *****
NXP Semiconductors (Nasdaq: NXPI  ) (20%) ****
Silicon Laboratories (Nasdaq: SLAB  ) (17%) ****
Atmel (Nasdaq: ATML  ) (23%) ***

Data from Google Finance and Motley Fool CAPS.

There's more to these drool-inducing discounts than mere price drops and respectable CAPS scores:

Given these ridiculous starting prices, it's hard to go wrong with any of these stocks. That being said, this is not a list of official recommendations but a starting point for further research. To help you along, we've created a tool that lets you mainline news and Foolish analysis on any stock you choose. Just add the tickers that interest you to your Foolish watchlist and enjoy the hands-free information flow:

Fool contributor Anders Bylund holds no position in any of the companies discussed here. The Motley Fool owns shares of TriQuint Semiconductor and Cisco and has created a bull call spread position on Cisco Systems. Motley Fool newsletter services have recommended buying shares of Silicon Laboratories, Cisco Systems, and NXP Semiconductors. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. You can check out Anders' holdings and a concise bio, follow him on Twitter or Google+, or peruse our Foolish disclosure policy.

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Related Tickers

12/31/1969 7:00 PM
ATML.DL $0.00 Down +0.00 +0.00%
Atmel CAPS Rating: ***
CREE $22.85 Up +0.73 +3.30%
Cree CAPS Rating: ***
FNSR $29.86 Up +0.70 +2.40%
Finisar CAPS Rating: ***
NXPI $101.84 Up +0.13 +0.13%
NXP Semiconductors… CAPS Rating: ****
SLAB $59.20 Up +0.40 +0.68%
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SMTC $25.20 Up +0.45 +1.82%
Semtech CAPS Rating: **
TQNT.DL $0.00 Down +0.00 +0.00%
TriQuint Semicondu… CAPS Rating: ***