📉 TOP 3 semiconductor stocks after the drop: Intel, AMD and TSMC back on the buying radar?

The semiconductor sector has had a very strong period, but in recent weeks a more significant correction has come. And it is precisely such moments that, in my opinion, often start to become much more interesting for long-term investors. 👀

Today we will look at three companies that I currently have on my radar – Intel $INTC , AMD $AMD and TSMC $TSM .

What do I find interesting? All three companies have very strong recent quarterly results behind them and their long-term stories are definitely not over. Yet their shares, after recent volatility and declines, in my opinion again offer more interesting entry levels.

As of August 21, 2026, Intel traded at approximately $90, AMD around $473 and TSMC at roughly $419 per ADR. 📊

🔵 Intel: In my view perhaps the biggest potential of the trio

I'll start perhaps a bit controversially. It is Intel that, in my opinion, may have the greatest long-term potential of this trio.

And the main reason is Intel Foundry. 🚀

Intel is of course still not without problems and an investment in this company definitely belongs among the riskier ones. The company is undergoing a huge transformation, massively investing in new factories, and must prove that it can compete long-term with TSMC and other manufacturers.

However, the latest results showed that the situation may be starting to move in the right direction. Intel achieved revenue of $16.1 billion in Q2 2026, representing year-over-year growth of 25%. Adjusted earnings per share reached $0.42, and for the next quarter the company expects revenue in the range of $15.8 to $16.8 billion.

And it is the foundry business that is the most interesting factor for me.

If Intel manages to build a truly strong external foundry business and gain significant customers, the entire investor view of this company may, in my opinion, change. Today, many people still perceive Intel primarily as a processor manufacturer that is catching up with the competition. But I see potential in Intel becoming a much more important player in chip manufacturing for the entire technology industry in the future.

Of course, it is not a certainty. Quite the opposite. Intel still has a lot to prove.

But that is exactly why I find the stock's potential interesting. If the foundry strategy really succeeds, the current size and valuation of the company may look completely different in hindsight. 💡

Moreover, Intel is currently massively investing in manufacturing capacity and its management is betting that demand for AI infrastructure, data centers and advanced chip manufacturing will grow long-term. Strong AI demand is already helping some other parts of Intel, according to the results.

So for me, Intel around $90 represents the riskiest investment of this trio, but at the same time perhaps the one with the greatest potential if the foundry business really takes off as planned. 📈

🔴 AMD: 2027 could be really big

With AMD, my investment view is a bit different.

Here I personally expect that 2027 could bring a truly significant increase in revenue, and one of the main reasons should be the new rack-scale system Helios. 🔥

AMD is already growing at an extremely rapid pace. In Q2 2026, the company achieved record revenue of $11.54 billion, representing year-over-year growth of 50%.

But even more important is the data center segment. Its revenue reached $6.72 billion, which meant year-over-year growth of 107%.

That is, in my opinion, very important because data centers and AI will likely be the main engine of further growth.

And now we get to 2027.

AMD expects its data center revenue to more than double year-over-year in 2027. The company is also expanding its offering from chips alone to entire AI systems – and this is where Helios could play a big role.

Helios is not just another GPU. It is an entire rack-scale AI system that combines EPYC processors, Instinct AI accelerators, networking technologies and software. AMD is thus trying to offer customers complete AI infrastructure, a similar direction to what Nvidia has been pursuing for some time. AMD has also already announced collaboration on the next generation of AI infrastructure, for example with Microsoft and other major players.

That is exactly why I think Helios could be one of the biggest growth catalysts for AMD in 2027.

Of course, competition with Nvidia will be extremely tough and it is not at all certain how large a market share AMD will gain. But if Helios can be successfully expanded among hyperscalers and other large customers, it could mean significantly higher revenue not only from the sale of GPUs themselves, but from entire systems. 🚀

AMD's stock after the recent decline reached approximately $473, while on August 14 it traded above $514. Although the company reported very strong results, high investor expectations and demanding valuation mean that revenue growth alone is sometimes no longer enough for the market.

And this is where, in my opinion, an opportunity may lie.

Yes, AMD may still seem expensive to some investors even after this decline. But I personally look primarily at where the company's revenue could be in one or two years. And 2027, in the case of AMD, seems extraordinarily interesting to me.

🟢 TSMC: The highest-quality company of the trio?

But if I were not to look only at potential, but primarily at the current quality of the business, TSMC would probably be in first place for me. 🏆

TSMC achieved revenue of $40.2 billion in Q2 2026 and its gross margin was a fantastic 67.7%. For Q3, the company expects further revenue growth to $44.6 to $45.8 billion.

Those are, in my opinion, absolutely exceptional numbers.

Moreover, TSMC is not a bet on just one specific AI company. If the entire market for AI, high-performance chips and data centers grows long-term, TSMC can benefit across the entire technology sector.

Of course, there are risks here too. The stock has already seen huge growth, the company is significantly increasing capital expenditures, and geopolitical risks associated with Taiwan cannot be ignored.

So for me, TSMC represents perhaps the least speculative bet of this trio on the long-term growth of the semiconductor and AI industry.

📊 And what about their valuations?

Here it is important, in my opinion, to be honest.

Yes, especially Intel, AMD and TSMC may still seem expensive to some investors.

But I personally do not look only at what the valuation looks like today.

I mainly look at what could be the main driver of revenue in two or three years.

🔵 Intel – the potential of Intel Foundry could be huge if the company manages to successfully expand this business and gain large external customers.

🔴 AMD – I expect a significant increase in revenue in 2027, primarily thanks to further growth of the AI and data center business and the potential ramp of the Helios system.

🟢 TSMC – remains the dominant manufacturer of the most advanced chips and can profit long-term from practically the growth of the entire AI ecosystem.

That is exactly why I think that even though some of these stocks may still look expensive at first glance, the potential of their future businesses is truly enormous. 🔥

📌 My conclusion

If I were to summarize it simply: Intel has the greatest potential for me, AMD the greatest expected growth in 2027, and TSMC is one of the highest-quality companies. And that is exactly why after the recent correction, all three stocks make much more sense to me than when they traded at their recent highs. That of course does not mean they cannot fall further. But for a long-term investor, the current situation is, in my opinion, starting to be truly interesting again. 👀🔥

What do you think about these declines, do you have any of these companies in your portfolio, or are you considering buying?