The chip sector is in the midst of a strong comeback which began after the sector bottomed in October 2022. Since that date, the Philadelphia Semiconductor Index has nearly doubled. Of course, AI is one of the key, positive catalysts driving the rebound, but PC sales are also starting to climb as consumers and businesses replace the units that they had acquired during the pandemic. And it looks like the data center segment of the sector is poised to start recovering soon too. Here are three semiconductor stocks that are well-positioned to surge as a result of the sector’s upswing.

Micron (MU)

Computer memory makers are an invaluable part of the semiconductor sector, and Micron (NASDAQ:MU) is a leading player in the memory space. Further, in a note to investors Wells Fargo (NYSE:WFC) estimated that the revenue of memory makers will soar 69% this year.

Further, last month UBS reiterated Micron as a top pick, citing its belief that the firm would benefit from a potential “super cycle” of the memory sector. Profits will be driven by the proliferation of AI and relatively low supplies of memory chips.

Despite MU’s strong positioning, the shares have a very low trailing price-earnings ratio of ten.

Intel (INTC)

Chipmaker Intel (INTC) recently reported strong Q4 2023 results. Its top line climbed 10% year-over-year to $15.4 billion. while its earnings per share climbed to 63 cents, way better than the loss per share of 16 cents that the chip maker generated in Q4 of 2022. However, shares still dropped withe reports release. The firm’s Q1 top-line guidance came in at $12.2 billion to $13.2 billion, well below analysts’ average estimate $14.16 billion.

The cause of the guidance miss was a combination of seasonality, conservatism by the company, its decision to sell off a number of its businesses last year and poor performance by its peripheral FPGA business. The miss, in other words, does not reflect badly on the company’s core businesses or its multiple, positive, strong catalysts.

Indeed, Intel’s core PC business is clearly thriving, as the revenue of the unit that sells chips for use in PCs soared 33% year-over-year. Moreover, the firm’s data center business is poised to get a big boost from the potential rebound of the data center chip sector.

ASML (ASML)

ASML (NASDAQ:ASML), which markets equipment used to make chips, is clearly benefiting a great deal from the AI boom.

On Jan. 24, the firm reported that its top line had climbed 12.5% last quarter year-over-year 7.2 billion euros, while its bottom line had soared 12.7% year-over-year to about 2 billion euros. Most impressively, its bookings more than tripled versus the previous quarter to 2.6 billion euros.

ASML’s strong performance and outlook certainly make it one of the best semiconductor stocks to buy at this point.

The company noted that chip inventory levels are dropping industry wide. Meanwhile, the utilization of its machines is on the rise from low levels. And it expects those levels to continue to climb this year. Finally, ASML noted that its order level had been very strong last quarter.

On the date of publication, Larry Ramer held a long position in INTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.