Nvidia (NASDAQ:NVDA) got caught up in the volatility of the hailstorm hitting the semiconductor market these past few weeks. And though this double-digit percent plunge off recent highs will probably end up nothing more than a blip in the one-year chart next summer, investors who are overly anxious about buying on weakness may wish to consider some of the alternative growth plays on the market right now.

Indeed, considering recent gains, Nvidia has been by far the most magnificent member of the Magnificent Seven. However, it may be time for another high-tech market darling to step up to the plate as NVDA stock takes a breather or a sharp tumble in the coming weeks as a potential double-top pattern plays out.

In this piece, we’ll look at other brutally punished chip stocks that may offer just a bit more on the front of value. Additionally, the path ahead may be less of a rough ride than the one right ahead of Nvidia.

Arm Holdings (ARM)

When it comes to the AI boom, GPU makers like Nvidia have really stolen the show. However, let’s not forget about the power of the CPU. Moving ahead, many tech titans seem to be taking silicon design into their own hands, leveraging the power of the Arm Holdings (NASDAQ:ARM) architecture.

Whether we’re talking about server-side processing or edge computing, custom silicon could be the next big thing in the AI revolution if it isn’t already. With Arm on the right side of a secular boom, many investors may wonder if it’s worth paying the nosebleed-level valuation to get into the name.

There’s expensive, then Arm-level expensive, with ARM stock going for more than 51 times price-to-sales (P/E) at the time of writing. As Arm looks to reveal its own chip next year while improving its impressive Arm Compute Subsystems (CSS) for AI devices, perhaps the profound growth warrants the overheated valuation.

Texas Instruments (TXN)

Texas Instruments (NASDAQ:TXN) is one of the neglected chip firms that, while not nearly as hot as other names, provides broad semi exposure at a more than reasonable valuation.

Recently, the maker of analog and embedded chips partnered with Taiwan-based Delta Electronics for work on EV charging. Indeed, the collaboration is intriguing, but it didn’t really move the needle for TXN stock.

For some reason or another, Texas Instruments just can’t seem to win over the hype that’s propelled other chip firms to stratospheric heights. At the time of writing, TXN stock trades at a reasonable 31.0 times trailing price-to-earnings (P/E) with a bountiful 2.53% dividend yield.

With activist investors at Elliott Investment Management taking a $2.5 billion stake a few months ago, perhaps investors seeking hidden value should give TXN shares another look. For now, the firm’s top boss is engaging in “constructive dialogue” to help get free cash flow in a desired spot.

KLA Corporation (KLAC)

KLA Corporation (NASDAQ:KLAC) is a chip-testing solution provider that investors shouldn’t overlook as the AI boom moves into uncharted territory. Undoubtedly, chip designers, fabs, and semi equipment makers stand to benefit from surging AI demand. However, don’t forget that process control and other solutions also play a pivotal role in the semi world.

Recently, Citigroup (NYSE:C) analyst Atif Malik touted the chip testers, KLA stock included, noting that they stand to be beneficiaries of chip production spending rising 15-20% in 2025. Malik is right to narrow out the underrated testing plays.

At the time of writing, KLA stock looks modestly priced at 28.8 times forward P/E. The firm’s exposure to China may concern some, as geopolitical risks hit the headlines following Donald Trump’s recent comments. In any case, the recent 15% dip seems exaggerated and may have created an excellent entry point for investors seeking growth and value.

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.