3 AI chip stocks down 15%+ as investors seek value

AI chip spending has remained volatile this year as investors question whether infrastructure capex is sustainable, but the evidence from cloud companies themselves suggests it will persist. Alphabet, Meta, OpenAI, and other hyperscalers have demonstrated that custom AI chips and specialized memory deliver strong returns with predictable payback periods, and they have locked in long-term supply contracts to secure capacity. This shift from relying solely on Nvidia's general-purpose GPUs to building custom silicon (as AMD and Broadcom enable) and securing dedicated memory supplies (SK Hynix's domain) reflects a maturation of the AI infrastructure market—moving from proof-of-concept to capital-intensive, contractually-binding deployment. The pullback in all three stocks has coincided with industry-wide concern about chip valuations, not a collapse in underlying demand. Broadcom's projection of more than $100 billion in ASIC revenue by fiscal 2027 and AMD's identification of a $220 billion agentic AI CPU market in the next few years are grounded in stated customer commitments rather than speculative forecasts.