After leading the market higher over the past 18 months, semiconductor stocks have pulled back lately. While the VanEck Semiconductor ETF (NASDAQ:SMH) has risen 30% on the year, it hasn’t moved at all in the last month. Many of the top names in the sector have fallen into a correction, defined as 10% below recent highs. While some analysts are raising alarm bells about microchip and semiconductor stocks, the reality is that investors should treat the current pullback as chance to buy great semiconductor stocks on sale.

The semiconductor industry remains in high demand, especially as they are the critical building blocks for artificial intelligence (AI) models and chatbots. That demand is likely to increase in coming years not decline. Investors buying semiconductor stocks will likely be rewarded with big gains in coming years if they can hold on for the long-term. If you can only buy one semiconductor stock in April, it better be one of these three names.

Nvidia (NVDA)

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A buying opportunity has opened up with Nvidia (NASDAQ:NVDA) stock now that its price has fallen 10% from its all-time high and entered correction territory. After a big run to start the year, NVDA stock has pulled back and been unable to remain at $950 per share. Investors shouldn’t worry too much about the decline and should instead view it as a chance to buy-the-dip, especially before the leading AI chipmaker delivers its next earnings print on May 22.

Much of the decline in NVDA stock is likely due to profit taking by institutional investors and professional traders at the end of the first quarter. Long-term, Nvidia remains one of the best semiconductor stocks to buy. Especially as the company rolls out its new Blackwell microchips. The B100 and B200 chips, which are the successors to Nvidia’s bestselling H100 chip, provide more power while being energy efficient. They are already in high demand.

Despite the recent dip, NVDA stock is still up 80% year to date.

Advanced Micro Devices (AMD)

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The stock of Advanced Micro Devices (NASDAQ:AMD) has also dipped after a strong start to the year and looks enticing at current levels. After peaking at an all-time high in early March, AMD stock has declined 17% in the last month. Investors should pounce before the share price recovers and again tests all-time highs. Like Nvidia, AMD is rolling out new microchips as it too tries to capitalize on the AI boom.

Last December, the company unveiled a new series of microchips called the Ryzen 8040 that are aimed at boosting AI applications by up to 60%. AMD has also launched its new MI300X accelerator microchip that’s used in data centers and servers and is meant to compete directly with Nvidia’s AI data center chips. Additionally, AMD’s earnings continue to exhibit strength, with the company forecasting that it expects $3.5 billion of AI chip sales this year. AMD next reports earnings on May 2.

Intel (INTC)

Speaking of new AI microchips, Intel (NASDAQ:INTC) has just unveiled a new microchip called the Gaudi 3 that the company says can be used to train and deploy big AI models and applications. Intel said that the Gaudi 3 chip is over twice as power-efficient and one-and-a-half times faster than Nvidia’s competing H100 microchip. Intel builds its Gaudi 3 chip using their new five-nanometer process. The company plans to eventually manufacture the AI chip itself at its new Ohio factory expected to open by 2028.

As far as the Ohio plant is concerned, Intel has also just secured $8.50 billion from the U.S. government through the Chips and Science Act that aims to make America more self-sufficient at making semiconductors. Intel said the government funding will support the creation of factories not only in Ohio but also in New Mexico, Arizona and Oregon. The combination of government funding and the new AI microchips should help to lift Intel’s earnings going forward as well as its share price. INTC stock is down 22% this year.

Intel next reports earnings on April 25.

On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.