Not all semiconductor stocks with skin in the AI boom are egregiously overvalued. Despite the hot run in chip plays, there’s still value in neglected plays that many investors are shying away from for one reason or another. Whether due to unique risks, uncertainties, or other factors, some of the less-crowded and, in many cases, cheaper semiconductor stocks may still be worth snapping up.

Undoubtedly, not every semiconductor firm is going to be the next coming of Nvidia (NASDAQ:NVDA). The more-than $3 trillion behemoth seems so far ahead of everyone else these days that it’s unrealistic to envision an up-and-comer that has any hope to catch it in the medium term or even the long haul.

The good news is other semiconductor firms don’t need to become the “next Nvidia” to make their shareholders money. They just have to deliver on their own set of expectations.

This piece will look at underpriced (and likely undervalued) semiconductor stocks that, while nowhere close to being in Nvidia’s league, can fare well in their own right!

Intel (INTC)

I think it’s safe to say that very few investors view Intel (NASDAQ:INTC) as a serious threat to Nvidia. Not while it’s enduring considerable challenges in an attempt to turn a corner and make up for ground lost.

Now down nearly 35% year-to-date, INTC stock broke many hearts in the first half. Expensive foundry plans don’t seem to be winning any contrarians. Still, Intel looks relatively affordable at 29.15 times forward price-to-earnings (P/E), even if it’s not one of the leaders in the race today.

Despite the relative lack of table-pounding INTC stock bulls, Intel’s management remains optimistic it has a chance to stand up to a giant in Nvidia. Despite impressive new data center chip releases (think the latest Xeon), investors aren’t yet convinced Intel can hit back at Nvidia.

Perhaps lower price points on comparable chips and greater clarity on the foundry front could help INTC stock bottom out. Either way, Intel is not a name to ignore, even after its latest share decline.

Applied Materials (AMAT)

For those seeking a better value, it can pay dividends to check out the leading semi equipment makers. Applied Materials (NASDAQ:AMAT) stock is coming off a parabolic run, with shares up 71% in the past year and 57% year-to-date.

Undoubtedly, AMAT stock’s momentum suggests overbought conditions and perhaps severe overvaluation. However, Applied Materials still looks like a pretty good deal, given the tailwinds that may be sticking around for a year or longer. At writing, shares of AMAT trade at 25.7 times forward P/E, making them appear cheaper than many low-growth consumer staple stocks on the market today.

With the company’s EPIC Center hub working on the absolute cutting edge of semi-innovation, the current multiple doesn’t seem to do the stock justice. Perhaps most intriguingly, Applied Materials’ new patterning solutions could pave the way for the industry’s move from the “nanometer era” to the “angstrom era.” It’s an exciting transition that Applied Materials will play a huge role in.

ASML (ASML)

ASML (NASDAQ:ASML) is another semi-equipment maker that has been making higher highs in recent weeks, thanks in part to AI tailwinds. Despite the impressive 50% past-year rally, ASML stock doesn’t look all too expensive at 47.8 times forward P/E. Not when considering the European company’s monopolistic positioning in the extreme ultraviolet (EUV) lithography machine market.

Looking ahead, the big chip fabs will find the need to upgrade their latest etching machines to prepare for the next generation of chips. Indeed, the 2-nanometer process marks the next generation. Beyond that, 1 nanometer and, eventually, a process measured in angstroms.

As the AI boom continues roaring, I think it’s just a matter of time before the heavyweight fabs start spending big money on ASML’s latest and greatest. Lithography machines do not come cheap. However, as the AI boom rolls on, perhaps the fabs will be more willing to open up their wallets.

Notably, foundry juggernaut Taiwan Semiconductor (NYSE:TSM) stands out as a firm that may put in orders for new ASML EUV machines. UBS analyst Francois-Xavier Bouvignies sees Taiwan Semi as a driving force for ASML the next year.

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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.