Finding the best chip stocks to buy isn’t as easy as it once was. After record demand in 2021, even the strongest chip stocks, such Nvidia (NASDAQ:NVDA), continue to struggle as a result of supply chain constraints and severe macroeconomic headwinds.

For instance, the S&P 500 Semiconductors Select Industry index is down 21% year to date. Meanwhile, the iShares Semiconductors ETF (NASDAQ:SOXX) has declined 22% over the same period. By comparison, the S&P 500 and the tech-heavy Nasdaq 100 index are down roughly 10% and 17% so far in 2022.

Yet, some chip stocks are riding out the tech selloff better than other sectors. Secular growth drivers such as artificial intelligence (“AI”), cloud computing, 5G, robotics, gaming and electric vehicles (EVs) are providing tailwinds for revenue growth as well as share price stability.

Analysts highlight digitalization means many items will have chips. As a result, the cyclical nature of the semiconductor industry is bound to decrease.

In recent days, Congress passed the $280 billion CHIPS and Science Act, which President Biden signed into law. It includes $52.7 billion in subsidies to support fabrication plants stateside. It is one of the largest programs launched by the federal government to support an important domestic industry.

As a result, the pullback in the semiconductor space represents a compelling buying opportunity for long-term investors. However, given the current market volatility, the best chip stocks to buy will have strong competitive advantages and wide economic moats.

With that information, here are the seven best chip stocks to buy that are primed to gain traction in the coming months.

ASML (ASML)

52-week range: $412.67 – $895.93

ASML (NASDAQ:ASML) is the leading manufacturer of photolithography systems used by semiconductor foundries to manufacture some of the most advanced chips. With a market share of more than 15%, this Netherlands-based company is currently the third-largest semiconductor wafer front end (WFE) equipment supplier worldwide and one of the best chip stocks to buy right now.

In late July, ASML reported Q2 revenue of 5.4 billion euros, representing year-over-year growth of 35%. Diluted earnings jumped to 3.54 euros per share, up from 2.52 euros a year ago. Cash and equivalents ended the period at 4.1 billion euros.

The impressive growth was fueled by the significant increase in the sales of its advanced lithography systems while customers expanded capacity to meet demand. The Dutch chipmaker reported new orders of 8.5 billion euros, the highest quarterly level in ASML’s history. Management anticipates sales growth for the full year at roughly 10%.

ASML stock is down 29% year to date and supports a 1.3% dividend yield. Shares are trading at 41.8 times forward earnings and 11.7 times sales. Wall Street’s 12-month median price forecast for ASML stock stands at $600.

Globalfoundries (GFS)

52-week range: $36.81 – $79.49

Globalfoundries (NASDAQ:GFS) focuses on radio-frequency communications chips for 5G and IOT devices. It also provides chips for automotive manufacturers.

With a market share of over 6%, Globalfoundries is one of the leading foundries worldwide.

The semiconductor play released Q2 results on Aug. 9. Record revenue came in at $1.99 billion, up 23% year over year. Adjusted earnings stood at 58 cents per diluted share, compared to an adjusted loss of 6 cents per diluted share a year ago. Cash and equivalents ended the period at $3.3 billion.

On Aug. 8, Globalfoundries announced an extension of its existing long-term production agreement with the chip giant Qualcomm (NASDAQ:QCOM) through 2028. This extension implies more than $4 billion in incremental wafer purchases from the chipmaker’s New York facility.

Meanwhile, the CHIPS Act is expected to accelerate the company’s plans to build its new New York-based factory. The factory is expected to double its chipmaking capacity in upstate New York.

In June, the chipmaker announced plans to build a new $5.7 billion semiconductor factory in France as well. The European Union is also working to boost output making this one of the best chip stocks to buy for the long term.

GFS stock is up nearly 10% year to date. Shares are trading at 22.3 times forward earnings and 4.3 times sales. Meanwhile, the 12-month median price forecast for GFS stock stands at $70.

Intel (INTC)

52-week range: $34.40 – $56.28

As one of the largest semiconductor manufacturers globally, Intel (NASDAQ:INTC) needs little introduction. The chipmaker is building two cutting-edge semiconductor foundries in Arizona. In addition, the CHIPS Act should help expand its foundry footprint through its new manufacturing facility in Columbus, Ohio.

On July 28, Intel announced lackluster Q2 metrics. Revenue came in at $15.3 billion, down 22% year over year. The cost of sales and operating expenses jumped by double digits. Adjusted earnings stood at 29 cents per diluted share, compared to $1.36 in the prior-year quarter. Cash and equivalents ended the period at $4.39 billion.

Revenue generated by the Client Computing and Data Center and Artificial Intelligence segments declined 25% and 16% year over year, respectively.

Management cited supply chain disruptions and pandemic lockdowns in China for misses on revenue and earnings. Intel anticipates generating between $65 billion and $68 billion in revenue for 2022. The earlier forecast was $76 billion.

So far in 2022, INTC stock is down almost 30%, but the semiconductor giant generates a robust 4% dividend yield at the current price level.

Shares are currently changing hands for less than 14.5 times forward earnings and 2 times sales. The 12-month median price forecast for INTC stock stands at $38.

Micron Technology (MU)

52-week range: $51.40 – $98.45

Micron Technology (NASDAQ:MU) is a global leader in semiconductor storage and memory solutions. The chipmaker specializes in dynamic random-access memory (DRAM), and NAND flash memory chips used in smartphones, data centers, PCs, and automobiles.

On Jun. 30, Micron reported Q3 results. Revenue increased 16% year over year to $8.64 billion. Adjusted net income was $2.59 per diluted share, up from $1.88 a year ago. Cash and equivalents ended the period at $9.26 billion.

Increased use of Micron chips in electric vehicles, 5G infrastructure, and AI, continue to fuel top-line growth. Management expects to generate most of its revenue from the data center, automotive, and industrial markets by fiscal 2025.

Wall Street expects these segments to enhance Micron’s cash flow stability over time. However, management anticipates revenue to fall roughly 13% year over year in the next quarter.

MU stock is down 30% so far in 2022. Shares are trading at 6.3 times forward earnings and 2.2 times sales. Analysts’ 12-month median price forecast for MU stock stands at $75.

Qualcomm (QCOM)

52-week range: $118.22 – $193.58

Qualcomm (NASDAQ:QCOM) is the largest wireless chipmaker in the world, well-known for its Snapdragon mobile processors and digital media processing units. The chipmaker provides the chip technology for Apple (NASDAQ:AAPL) devices.

On July 27, Qualcomm issued Q2 results. Revenue increased 36% year over year to $10.94 billion. Adjusted earnings came in at $2.96 per diluted share, up 54% from $1.92 a year ago. Cash and equivalents ended the period at $3.19 billion.

The chipmaker saw record revenue in its automotive and IoT segments, reporting 38% and 31% year-over-year growth respectively. Profit margins for these segments are typically higher than the legacy smartphone business.

Meanwhile, Qualcomm continues to benefit from the 5G upgrade cycle while telecom businesses upgrade their services and consumers purchase new smartphones. The global 5G chipset market is expected to reach almost $66.5 billion by 2028, growing at a compounded annual growth rate (CAGR) of close to 70% from 2021 through 2028.

QCOM stock is down 17% year to date, while the dividend yield currently stands at 2%. Shares are now trading at 11.3 times forward earnings and 4 times sales. Wall Street’s 12-month median price forecast for QCOM stock is $180.

Skyworks Solutions (SWKS)

52-week range: $88.76 – $186.87

Skyworks Solutions (NASDAQ:SWKS) produces semiconductors for wireless handsets and other devices that support wireless connectivity. Apple accounted for close to 60% of Skyworks’ revenue in fiscal 2021.

Skyworks reported record Q3 results on Aug. 4. Revenue came in at $1.23 billion, up 10% year over year. Adjusted earnings increased 13.5% year over year to $2.44 per share. Cash and equivalents ended the period at $643 million.

Management highlighted robust growth was fueled by “content expansion in premium 5G-enabled smartphones, along with growth in automotive, data center, and network infrastructure.”

In the fourth quarter, the chipmaker anticipates a 7% year-over-year increase in revenue and an 11% year-over-year increase in earnings.

Skyworks’ 5G chips were selected by Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) and Samsung (OTCMKTS:SSNLF) for their next-generation smartphones. As a result, the chipmaker could look beyond the sluggish demand from China.

SWKS stock is down 27% year to date. The chipmaker currently generates a dividend yield of 2.2%. Shares are changing hands at an attractive valuation of just 9.5 times forward earnings and 3.4 times sales. The 12-month median price forecast for SWKS stock stands at $130.

Texas Instruments (TXN)

52-week range: $144.46 – $202.26

Texas Instruments (NASDAQ:TXN) is the world’s largest analog chipmaker. It produces analog and embedded chips for the automotive, personal electronics, industrial, communications, and enterprise sectors.

The chipmaker announced Q2 metrics on Jul. 26. Revenue jumped 14% year over year to $5.21 billion. Earnings per share grew 20% to $2.45. Free cash flow came in at $1.17 billion. Cash and equivalents ended the quarter at $3.8 billion.

For Texas Instruments, the auto and industrial markets accounted for most of the revenue growth. In other words, the chipmaker was able to escape sluggish smartphone sales.

Texas Instruments also stands as a key beneficiary of the CHIPS Act, making it one of the best chip stocks to buy. Much of its chip fabs are around the greater Dallas area. Management recently announced plans to build four fabrication plants in Sherman, Texas. The result will be reduced overseas supply chain dependence for American companies.

TXN stock is down 2% year to date. The chip stock currently supports a 2.5% dividend yield. Shares are trading at 19.4 times forward earnings and 8.7 times sales. The 12-month median price forecast for TXN stock stands at $173.50.

On the date of publication, Tezcan Gecgil is both long and short NVDA and GOOG. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.