(NASDAQ: AMD) and Qualcomm (NASDAQ: QCOM) both saw their stocks close at record highs in late 2021. At the time, both semiconductor companies seemed poised to profit from the global chip shortage. The buying frenzy in growth stocks throughout the year amplified their gains and further inflated their valuations.

But in 2022, that party abruptly ended as the PC and smartphone markets cooled off. The chip shortage turned into a surplus, chip prices plummeted, and rising interest rates drove investors away from the market's pricier tech stocks. As a result, AMD and Qualcomm now trade about 50% and 40%, respectively, below their all-time highs.

Those declines were painful for investors who hopped on the bandwagon in late 2021, but they might represent good buying opportunities today. Should you invest in either of these out-of-favor chipmakers before their growth cycles bottom out? Let's take a look.

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Source Fool.com