Buy The Chip Dip!

The semiconductor space is ripe for a buy after a recent market dip. This earnings season should generate some robust springboard price-action for the best-positioned chip stocks after the recent pulldown in the space. In fact, the leading semiconductor ETF SMH dipped momentarily into bear market territory – (-20%) or more decline from recent highs – last Monday (1/24).

The S&P 500 is finally headed back towards its highs following a rate-fueled January correction, which appears to have bottomed last week. This leading large-cap index finally got a much-need growth bid following valuation-supporting fundamentals from the world's largest tech giants' Apple AAPL and Microsoft MSFT.

Demand for the latest technology is becoming as boundless as the prolific innovation that drives it. The commencing digital renaissance of the Roaring 20s will be a decade of outsized economic growth with semiconductors at the crux. Integrated chips (aka semiconductors) are at the core of every new technology, and their advancement is paramount to posterity.

The leaders of chip innovation like TSMC TSM, NVIDIA NVDA, & AMD AMD have proven that the semiconductors sector is no longer bound by cyclical factors but can generate sustainable and consistent secular growth. Outsized chip demands are the reason for the global chip shortage, and this swelling demand isn't going anywhere.

It's time to get greedy on digital chip stocks this earnings season. AMD AMD reports earnings after the closing bell Tuesday (2/1), and analysts are looking for record top and bottom-line results, touting the growth of 40% and 44%, respectively. If AMD can deliver solid results and guidance, it would drive a friendly innovation bid in the high-growth semiconductor space.

Stocks I discuss: TSMC TSM: 0:45 VanEck Semiconductor ETF SMH: 2:05 Qualcomm QCOM: 3:14 Synopsys SNPS: 3:55 Lam Research LRCX: 4:54 ACM Research ACMR: 5:39.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."

Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.3% per year. So be sure to give these hand-picked 7 your immediate attention.