The semiconductor stocks could stay hot in the second quarter as investor hype and enthusiasm over generative artificial intelligence (AI) looks to continue. Undoubtedly, some of the more value-conscious investors out there may wonder how hard the next tech correction could hit once the AI frenzy has a chance to cool off. Given the pace of industry developments, the AI and semiconductor rallies may have the fuel they need to keep running for many quarters.

As much hype has surrounded the AI-facing semiconductor stocks, I’m still not sure “euphoria” is the right word to describe the latest round of industry action. Of course, Nvidia (NASDAQ:NVDA) may be one of the exceptions, given it’s managed to swing home run after home run. In any case, I believe there is value in the semiconductor scene for those willing to broaden their horizons a bit.

These underpriced semiconductor stocks are worth considering.

Intel (INTC)

Intel (NASDAQ:INTC) may have developed a reputation as a lagging chip company that’s struggled to keep up. Still, the company (and its stock, which is up 75% since its early 2023 lows) is in the process of coming back. As the firm’s big bets look to rake in a potentially sizeable return, Intel may just be in line to defy expectations as it continues investing aggressively to turn a corner.

Undoubtedly, it’s easy to dismiss CEO Pat Gelsinger’s ambitious commentary and his firm’s long-term plans. However, as the firm makes all the right bets in the right places (AI, foundry expansion and driving efficiencies), it’s becoming harder to label Intel as one of those legacy companies no longer able to grow quickly.

Intel isn’t on its way out. It’s ready and willing to spend to get back on the growth track. As the firm looks to seize the AI opportunity with its own accelerators, perhaps more of the enthusiasm surrounding today’s hotter AI chip stocks will work its way over to INTC stock.

It’s still an uphill battle on the road to recovery, but the firm’s chances seem to be improving with every ambitious new investment. That alone may make the firm worth backing as it keeps loosening the purse strings while staying on its toes.

Micron Technology (MU)

Micron Technology (NASDAQ:MU) stock may very well be getting cheaper as it rises, as the firm makes the most of the AI-induced surge in memory demand. Micron may have plenty of overseas rivals, but as far as large U.S. memory chip makers go, Micron is a standout player at this point in the AI race.

Not only do you need high-powered AI accelerators to run the latest and greatest large language models (LLMs) but you’ll also need plenty of memory, specifically high-performance memory.

When it comes to top-of-the-line memory chips, Micron’s a titan in its own right, as it looks to play its vital role in helping companies get up to speed with modern AI-enabled hardware.

The company’s HBM3E memory, in particular, has been an incredibly hot seller that the firm can’t seem to produce enough of. As demand outweighs supply for memory (and all other parts that go into powering AIs), it’s tough to bet against MU stock, even after a parabolic melt-up.

Taiwan Semiconductor (TSM)

At around 23 times forward price-to-earnings, Taiwan Semiconductor (NYSE:TSM) stock seems quite undervalued given its chip-making dominance. The firm builds chips for AI juggernauts Nvidia and Apple (NASDAQ:AAPL), so any gains in these respective AI giants are sure to drive shares of TSM.

At this juncture, investors may be overemphasizing geopolitical risks associated with Taiwan Semiconductor. Of course, not everybody will be comfortable as China-Taiwan relations erode further. Regardless, I don’t think geopolitics should be the sole reason to avoid TSM stock like the plague — not while it’s continuing to gain on the backs of some heavyweights in the chip world.

As the AI boom paves the way for high double-digit sales growth this year (and perhaps the year after), TSM stands out as one of the most undervalued AI chip plays in the entire semi industry.

Who knows? Perhaps any subtle improvement in China-Taiwan relations could act as another driver of shares.

On the date of publication, Joey Frenette held shares of Apple. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.