3 Semiconductor Stocks to Sell in August Before They Crash & Burn

Group 1: AI Market Overview - The artificial intelligence (AI) investment frenzy is cooling down as investors question the return on large capital expenditures in the sector [1] - Alphabet's second-quarter earnings report showed mixed results, with YouTube ad revenue at $8.7 billion, lower than expected, and capital expenditures rising to $13.2 billion, exceeding estimates [1] Group 2: Intel (INTC) - Intel's stock has dropped over 60% since the start of 2024, struggling to keep pace with competitors like Taiwan Semiconductor Manufacturing Company (TSMC) [3] - The company's Foundry business lost $7 billion last year, prompting a restructuring plan that includes layoffs of 15,000 workers and a dividend elimination [4] - Intel's recent investments in AI chips have negatively impacted its earnings per share, leading to soft guidance for Q3 and ongoing operational inefficiencies [4] Group 3: Qualcomm (QCOM) - Qualcomm's revenues declined 19% year-over-year to $35.8 billion, with handset chip revenues dropping 27% [6] - The company is betting on its new Snapdragon X Elite AI chips for Windows PCs, but consumer demand remains uncertain amid recession fears [6] - Qualcomm's stock has fallen 27% since its 52-week high of $227.09 in mid-July, with potential for further selling pressure [6] Group 4: Applied Optoelectronics (AAOI) - Applied Optoelectronics develops optical transceivers and laser components for data centers, but growth has been slower than expected [7] - The company has seen its shares plummet 60% since the start of the year, with no significant upward revisions to guidance anticipated [7]