Semiconductor stocks have been pummeled recently, opening up a nice potential opportunity to buy these stocks while they are down. However, not all semiconductor stocks are created equal, so investors should be selective.

Let’s look at one chip stock I’d buy, one I’d continue to hold, and one I’d sell.

Image source: The Motley Fool.

Buy: Nvidia

If there is one chip stock to buy in this sell-off, it’s Nvidia (NVDA +2.93%). Not only is the company the AI infrastructure leader, but its stock is also incredibly cheap and continues to grow rapidly.

Nvidia’s biggest advantage is that it has created a wide moat with its CUDA software platform for AI model training. It is the dominant player in the space because, many years ago, it planted…