TLDRGoldman Sachs says chip stocks are oversold after this month’s sharp drop.Even with no 2028 earnings growth, Nvidia trades near 12 times earnings and Broadcom near 13 times.The Philadelphia Semiconductor Index is down about 21% over the past month.Wells Fargo raised its view on US AI infrastructure to neutral on November 10.Nvidia reports earnings on November 17.Goldman Sachs ran a simple test on chip stocks after this month’s drop. It asked what Nvidia and Broadcom would cost if their profits stopped growing. The answer led the bank to call the sector oversold.Analyst James Schneider shared the view, which Yahoo Finance reported on November 10. He said the recent correction may have gone too far. He also said chip stocks could struggle to find a clear catalyst before the end of 2026.Even with no earnings growth in 2028, Goldman estimates Nvidia trades at about 12 times its earnings baseline. Broadcom trades at about 13 times. The bank calls those levels compelling.Goldman also thinks a full stop in growth is unlikely. Nvidia is the top supplier of chips used to train and run AI systems. Broadcom makes custom AI chips and networking gear used by large cloud providers.Schneider named Nvidia, Broadcom and Advanced Micro Devices as preferred picks. He said the valuation of Advanced Micro Devices is less appealing than the other two. The bank still sees room for growth as demand rises for other AI processors and server chips.Broadcom Inc., AVGOHow the Selloff UnfoldedThe drop began with a hard day for US stocks. On November 5, the S&P 500 fell about 4.3%. That erased nearly $3 trillion in market value.The Dow Jones Industrial Average lost about 1,800 points that day. The Nasdaq Composite fell 5.5%. Chip stocks were among the hardest hit.Reuters reported that the Philadelphia Semiconductor Index fell as much as 11% during the session. That was its sharpest intraday drop since March 2020. The index is down about 21% over the past month.Investors are asking whether large AI spending plans can earn enough money back. The November 3 US midterm elections added to the worry. Some fear limits on new data center projects.Goldman listed two main hurdles. One is paying for the gap between AI spending and available cash flow. The other is finding enough land, power and building capacity for planned sites.What Other Banks Are SayingWells Fargo raised its view on US AI infrastructure companies from negative to neutral on November 10. It said chip shares are down about 38% from their June highs. The bank says current prices imply yearly earnings growth of about 8%.Wells Fargo also warned that slower AI spending and rising depreciation costs could weigh on earnings in 2028. Those risks sit alongside its more positive view on prices. The upgrade moves the bank’s rating up one step.Morgan Stanley and UBS said fears of new rules after the midterms may be overdone. They believe tighter rules could delay some data center projects instead of ending them. Reuters reported their comments on November 9.Nvidia is the next test for chip investors. Analysts expect its data center revenue to rise more than 12% from the prior quarter. The company reports earnings on November 17.The post Goldman Sachs Names Nvidia, Broadcom and AMD as Top Chip Stock Buys After Selloff appeared first on Blockonomi.