The bear market has rolled through equities and continues to roll through equities. As it damages stock prices, it’s also damaging investor sentiment and confidence. However, it’s leaving behind a wake of value. In particular, there are a number of undervalued semiconductor stocks that look like good buys.

Semiconductors power the world. Without them, consumer electronics, gaming, the cloud, artificial intelligence and so much more would not be possible. The companies in this industry offer steady growth and profits, making them attractive investments.

So, if you’re looking to add some undervalued semiconductor stocks to your portfolio, here are three to start with.

Advanced Micro Devices (AMD)

In the semiconductor world, there are the haves and the have-nots, and Advanced Micro Devices (NASDAQ:AMD) is decidedly part of the former group. While some firms have cut their guidance for 2022, AMD has held firm. It continues to expect revenue will grow approximately 60% to around $26.3 billion and non-GAAP gross margin of about 54%.

On Aug. 2, the company reported better-than-expected revenue and profits for its second quarter. While management lowered their Q3 revenue forecast due to declining PC sales, it maintained its full-year outlook. I’d say that’s pretty encouraging considering the current environment.

Analysts expect earnings per share to increase 55% to $4.33 this year, thanks in part to the acquisition of Xilinx, and 11% next year to $4.79.

Shares of AMD have fallen 54% this year and look significantly undervalued with a forward price-earnings ratio of 13.

Taiwan Semiconductor Manufacturing (TSM)

Taiwan Semiconductor Manufacturing (NYSE:TSM) is a behemoth semiconductor company that not everyone is familiar with. Even after a 42% year-to-date drop, the company still has a $349 billion market cap.

Even if you know the company, you may not be aware of the fact that it has better operating margins, at 44.8%, than all of the FAANG companies, Advanced Micro Devices and even Nvidia (NASDAQ:NVDA). That says a lot about the strength of Taiwan Semiconductor’s business.

Analysts expect the company to grow revenue 28% this year to $72.8 billion and nearly 9% next year to $79.3 billion. Meanwhile, earnings per share are forecast to jump 54% to $6.35 this year before declining 1.6% next year to $6.25.

TSM is trading at 11.1 times 2023 earings. That incredibly cheap valuation is the lowest it’s been in years. What’s more, the stock throws off a 2.7% dividend yield.

While Taiwan Semiconductor is certainly one of the top undervalued semiconductor stocks out there, there is one caveat. As its name implies, it’s headquartered in Taiwan. China has threatened to invade the country. If this happens, the company would be rendered “not operable,” Taiwan Semiconductor Chair Mark Liu said.

Broadcom (AVGO)

Last but most certainly not least is Broadcom (NASDAQ:AVGO). This high-quality company generated operating margin just short of Taiwan Semiconductor (44.7% for AVGO versus 44.8% for TSM).

On Sept. 1, Broadcom reported better-than-expected Q3 revenue and earnings. Management’s Q4 revenue forecast of $8.9 billion also came in ahead of analyst expectations.

Analysts expect revenue to grow 21% this year to $33.2 billion and 6% next year to $35.1 billion. Earnings are forecast to increase 34% to $37.42 per share. While growth is expected to slow next year, as is the case with the other names on our list, analysts forecast earnings will increase 9% in 2023 to $40.64 per share.

AVGO stock is down 31% year to date and trades with a forward P/E of 10.9, the lowest valuation of the undervalued semiconductor stocks on today’s list. Plus, it throws off a healthy dividend yield of 3.7%.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.