3 Chip Stocks Under $50 Worth Buying Now
Three chip stocks (NVTS, AOSL, WOLF) under $50 are highlighted for AI data center exposure. NVTS, designed for NVDA's 800V racks, expects AI infrastructure to exceed 33% of revenue by year-end. AOSL trades at a forward P/E of 8, with AI server revenue projected to surge over 60%. WOLF reports mixed Q4 results but sees AI data center revenue growth. All have cash cushions and upcoming catalysts.
How this was made
The 30-second read
Why it matters
New earnings releases provide fresh revenue and guidance numbers, offering traders actionable insight into short‑term price moves.
Market read
Earnings and guidance for these AI‑focused chip makers could drive sector rotation and influence related semiconductor stocks.
What to watch
Supply‑chain constraints and macro‑economic headwinds may limit the pace of AI infrastructure rollout.
Background
The article surveys three sub‑$50 wide‑bandgap semiconductor stocks with fresh earnings data and AI‑related guidance.
Ticker impact
Navitas reported Q2 FY26 revenue of $10.5M and guided Q3 revenue to $13.5M, highlighting AI infrastructure to exceed one-third of sales by year‑end.
Potential 10‑15% rally if guidance is confirmed by investors.
Guidance above consensus and cash cushion support upside, but high beta and revenue decline pose risk.
Alpha and Omega posted Q4 FY26 revenue of $170.4M with improved margins and forecast $176M±$10M, plus AI/server revenue expected to grow >60% sequentially.
Possible 8‑12% gain if market digests the margin expansion.
Strong AI revenue outlook offsets consumer segment weakness; cash position is solid.
Wolfspeed posted Q4 FY26 revenue of $150M, missed EPS expectations, and gave Q1 FY27 revenue guidance of $140‑$160M with negative margins.
Potential 5‑10% decline pending further guidance clarity.
Revenue miss and margin pressure outweigh AI upside in the short term.
Market effects
The AI‑driven power semiconductor niche gains visibility, potentially lifting related wide‑bandgap peers.
U.S. semiconductor sector may see modest inflows as investors rotate into sub‑$50 AI‑exposed names.
Highlights the broader shift to 800V data‑center architectures, relevant for global chip manufacturers.
Counterpoint
High valuations and volatile earnings could lead to sharp corrections if AI demand stalls.
Key entities
- companyNavitas Semiconductor
GaN chip maker with AI infrastructure exposure.
- companyAlpha and Omega Semiconductor
SiC chip producer targeting AI server markets.
- companyWolfspeed
SiC power device maker undergoing turnaround.
