All good things eventually come to an end, and the massive rally in Nvidia Corp. (NASDAQ:NVDA) appears to be finally losing steam. The seminal semiconductor stock has rallied nearly 100% following its April lows and has basically traded flat over the last month.
Even the impressive fiscal Q2 2026 earnings report released during the last week of August failed to move the stock much. Now the company is facing political pressure over its sales in China.
The AI capex march rolls on, though. We've identified four stocks that could pick up the slack from NVDA in terms of portfolio gains.
Each of these companies provides crucial components or services to the AI sector and possesses both fundamental and technical tailwinds working in its favor.
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ASML Holdings N.V.
ASML (NASDAQ:ASML) might be the most unheralded AI stock in the industry thanks to its near-monopoly on a vital semiconductor process. ASML Holdings N.V. controls the market on Extreme Ultraviolet (EUV) lithography, a complex process in semiconductor production where light is flashed through a mask to expose circuit patterns. The company boasts a massive $289 million market capitalization and generates over $30 billion in annual sales. It also released top and bottom-line earnings beats for Q2 in July, which included a 12% upside surprise on earnings per share (EPS). However, despite these impressive numbers, the stock still trades with a Price-to-Earnings (P/E) ratio of 25.8, which is significantly lower than NVDA's 48.6 and the sector average of 49.7.
ASML shares are only up 6% year-to-date (YTD), but several bullish signals are beginning to show on the daily chart. Investors were treated to a false breakout in July following a Golden Cross; the stock broke down below its 200-day simple moving average by August. However, the price has once again overtaken the 50-day and 200-day SMAs, and a MACD crossover appears to confirm the bullish momentum. The next catalyst for ASML is its earnings release on October 14, with high revenue expectations of $8.81 billion.
KLA Corp.
Semiconductors are delicate and complicated, and they require sophisticated quality control processes to ensure each chip passes inspection. Even the tiniest flaw (less than a millimeter!) can cause a chip to fail, so the inspection process must be able to detect these defects. That's where KLA Corp. (NASDAQ:KLAC) makes its mark on the AI sector. KLA has a $112 billion market cap and does approximately $12 billion in annual sales, with net profit margins of 33%. Unlike ASML, KLAC shares have soared in 2025, clocking a gain of more than 30% YTD. But a recent 10% decline could present a buying opportunity for new investors.
The stock has returned to June levels, where a Golden Cross pushed shares to a new all-time high. But shares have been losing momentum (as evidenced on the RSI) and recently dipped below the 50-day SMA. The 50-day is now acting as resistance, keeping the stock suppressed after a breakout attempt. This is a key area to watch moving forward. KLAC has a fair valuation and a long history of beating top and bottom-line earnings expectations. It also boasts a 99.59 Benzinga Edge Growth score and a 91.32 Quality score.
Broadcom Inc.
Now here's a semiconductor stock everyone knows. Broadcom (NASDAQ:AVGO) is one of the market's few trillion-dollar companies, with a market capitalization exceeding $1.4 trillion and annual sales of $56 billion. AVGO shares are up 30% so far this year, and have nearly doubled in the last 12 months. What's driven this performance? In addition to reaping the benefits of its VMware acquisition, Broadcom produces crucial components, including networking equipment and chips. It counts hyperscalers such as Alphabet and Meta among its largest customers. Broadcom's services are critical for keeping data centers up and running, and its hefty valuation (P/E of 108.8) is supported by quarterly revenue that continues to break records. The company reported $15 billion in Q2 revenue and analysts predict another record of $15.8 billion in Q3.
AVGO shares hit a rare bump in the road in August, dropping in 5 of 7 sessions as the share price receded to the 50-day SMA. But the 50-day SMA has become a support area and a potential entry point for investors looking to open new positions. The RSI hinted at this momentum weakness following an Overbought signal in July, and has trended steadily downward ever since. However, another strong earnings report in Q3 could reignite the uptrend in this stock, which clearly still has upward momentum bubbling under the surface (91.60 Benzinga Edge Momentum score).
Advantest Corp.
KLA Corp. doesn’t have the semiconductor testing market cornered. Tokyo-based Advantest (OTC:ATEYY) offers automated testing equipment to many of the market's biggest chipmakers. The company has a $52.9 billion market cap and is valued at a 47.7 P/E ratio, right around the semiconductor industry average. Advantest acquired one of its testing rivals, Verify, in 2011 and now controls about 50% of the market in automated testing equipment.
Advantest lacks coverage from U.S. stock analysts, but that could change if its recent rally continues. The stock is up 39% in the last three months alone, a rally that was boosted by a Golden Cross forming in the first week of July. Since this breakout, the stock has been using the 50-day SMA as support, and shares closed above $80 for the first time on August 28. However, a pullback has begun in the succeeding few sessions, and the stock is down 5% since breaking through the $80 mark. This pullback is likely to be short-lived, however, as the company is reporting record revenue growth (90% year-over-year in the most recent Q2 earnings release) and neither NVDA nor AMD can do without its testing equipment.
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