The semiconductor trade lost a great of its luster in recent weeks, with some of the top names in the space (including the likes of Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD)) showing immense weakness after many quarters of remarkable gains. Undoubtedly, the technical backdrop does not look too pretty in April 2024, especially for those just in the names to make a quick buck. That said, I do think that over the long haul, this negative turning point for semis and the rest of tech may not be as horrid as it seems today. That’s why you should consider these semiconductor stocks to buy on the dip.

With NVDA and AMD stocks bouncing back on an upbeat Tuesday, it will be interesting to see where the two AI chip leaders steer the rest of the tech scene and markets as a whole. Buying this Spring-time dip will certainly not be pain-free. However, those who still believe their long-term growth stories are underappreciated may find the “buy the dip” mentality may pay off.

Qualcomm (QCOM)

Qualcomm (NASDAQ:QCOM) is one of the relatively lukewarm semiconductor stocks out there, with shares still more than two years off their all-time highs. Undoubtedly, QCOM stock may finally experience its breakout moment should it unveil some better-than-expected numbers come its May 1, 2024 earnings report. With momentum starting to turn against the tech as a whole, though, the numbers and guidance had better be good.

Either way, Qualcomm has plenty of newly unveiled hardware to capitalize on the AI race, especially if demand for PCs, specifically AI-capable PCs, looks to kick off a new bull market. While I don’t expect a lockdown-era PC demand surge, I do think things will get very interesting as PC makers sell prospective customers on edge computing.

Qualcomm’s Snapdragon X Elite PC chip could gain significantly if PC sales are in for another AI-induced jolt. And on the front of AI-capable smartphones, Qualcomm also stands to gain with its impressive new Snapdragon 8 Gen 3.

Either way, an edge transition means big things for Qualcomm as it looks to rise to become one of the next major movers of the AI chip scene.

Though I have no idea if 2024 will see an edge AI boom, I do think AI innovations will eventually start inching toward the edge as hardware becomes more capable. You can see why we are excited about these semiconductor stocks to buy on the dip.

Lam Research (LRCX)

You don’t need to be a GPU maker to benefit from the rise of AI. Wafer fabrication equipment (WFE) firm Lam Research (NASDAQ:LRCX) also play a vital role in the boom. Lam has also been doing quite well over the past year supporting the semiconductor firms, most notably the memory chip makers, as they ramp up their production capacity to meet rising AI hardware demand.

Personally, I view Lam as still relatively underappreciated, at least compared to the firms pulling the curtain on their best and brightest AI accelerators. At the time of writing, the stock goes for 23.8 times forward price-to-earnings, which isn’t all too unreasonable.

Not all analysts are upbeat on LRCX stock for the year, though. Deutsche Bank is one of the skeptics, downgrading shares to neutral back in December 2023, noting that a “robust memory capex recovery in 2025” may already be priced in.

With mild expectations from some analysts, perhaps Lam Research may have more room to impress following its impressive third-quarter guidance calling for sales to come in the $3.4-4.0 billion range, up from $3.69 billion.

Texas Instruments (TXN)

Texas Instruments (NASDAQ:TXN) stock is another modestly-priced semiconductor company that may have underappreciated upside over the coming years. Shares have been fluctuating in a rather wide consolidation channel since plunging back in early 2022.

With shares in consolidation mode, TXN stock looks rather untimely for most upside-seeking investors, even after its latest first-quarter earnings, which came in ahead of expectations. Despite the better-than-expected quarter, management noted of revenue declines “across all end markets.”

Despite softening broad-based demand, the company seems well-equipped to benefit as AI shifts closer to the edge. Products like the Edge AI Studio lower the barriers to designing AI models on the back of the company’s hardware.

Indeed, many Texas Instrument components are in the devices we use regularly. Such components may not be the “brain” of the device, but nevertheless, they are vital to its functioning as more consumers place more value on the AI capabilities of their own hardware. Make the right play and invest in these semiconductor stocks to buy on the dip.

On the date of publication, Joey Frenette did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.