• A market selloff has rendered some semiconductor stocks too cheap to ignore right now.
• Advanced Micro Devices (AMD): Despite strong growth, a cheap AMD stock spots a Forward PEG ratio far below 1.0.
• Alpha and Ohmega Semiconductor Ltd. (AOSL): A 36% decline in 2022 renders AOSL a cheap semiconductor growth stock.
• Micron Technology (MU): A memory market leader investing $150 billion to enlarge its territory ranks among cheap semiconductor stocks today.
• ASE Technology Holding Co. (ASX): Could grow earnings at a 34% clip and touts a 4.5% dividend yield, yet stock remains cheap.
• Cohu Inc. (COHU): A low Forward PEG ratio of 0.2 is unfair as the company targets $1 billion in annual sales.
• Vishay Intertechnology Inc. (VSH): Pays dividends, and spots a PEG of 0.3. Growth isn’t properly priced into VSH stock price.
• Amkor Technology (AMKR): Near-term earnings guidance shows minimal impact from China lockdowns.

A choppy stock market has provided investors with some interesting long-term buying opportunities on cheap semiconductor stocks this year. Names on this list have near-zero price/earnings-to-growth (PEG) ratios today, yet the industry is fighting to clear huge order backlogs and satisfy growing customer demand. This list includes cheap semiconductor stocks that will keep growing their revenues, earnings and cash flows – even during a bear market.

The 2022 market crash has been downright unforgiving to tech stocks. A tech-heavy Nasdaq 100 index has declined by more than 24% year-to-date (YTD) during a flight to defensive names. The flight rendered some high-quality semiconductor stocks too cheap to ignore.

Actually, some semiconductor stocks are so cheap they look like value investments right now, given single-digit price-to-earnings (P/E) multiples and dividend yields north of 4%.

Most noteworthy, there is evidence of a complete disregard for growth potential as fear clouds investors’ judgment. One fundamental valuation metric that inculcates growth into share valuation is the PEG ratio, which divides the P/E ratio by the expected earnings growth rate.

A fairly valued stock will have a PEG of 1.0. PEG ratios above 1.0 imply overvaluation while a PEG ratio of less than 1.0 denotes a cheap stock that is undervalued relative to its earnings growth potential.

Below is a curated list of seven cheap semiconductor stocks with low PEG ratios to buy now.

Advanced Micro Devices (AMD)

Advanced Micro Devices (NASDAQ:AMD) is a microprocessor designer that has given market leader Intel (NASDAQ:INTC) serious headaches. This is especially true in the high-margin enterprise computing vertical, where AMD’s recent acquisition of Xilinx gives it more clout.

AMD stock has dropped 34% so far this year. The company grew its revenue by 71% year-over-year (YOY) during the last quarter. Shares have a forward P/E ratio of 21.4x. Wall Street projects a strong 32.8% earnings growth rate over the next five years. AMD’s PEG ratio of 0.7 as of May 15 screams a loud “buy” on this semiconductor growth stock today.

Most noteworthy, AMD is an enviously profitable and growing cash-flow generating machine. The company generated more than $920 million in free cash flow during the first quarter of 2022, up from over $830 million a year ago.

At current operating levels, AMD’s free cash flows (FCF) can power share repurchases and new strategic acquisitions to enhance growth. It can make investors happy — even if legacy revenue and earnings levels remain flat going forward.

Alpha and Omega Semiconductor Ltd. (AOSL)

Alpha and Omega Semiconductor Ltd. (NASDAQ:AOSL) is a power supply semiconductor designer and manufacturer that has been making impressive strides in bringing innovative products to market. The company has announced five new advanced product innovations so far this year. However, AOSL stock has declined by 35% YTD, and shares are too cheap to ignore.

The company produced $112 million in free cash flow from revenues of $727 million during the calendar year 2021 and its balance sheet turned net cash positive last year. Preliminary results for the first quarter of this calendar year show a 20% YOY revenue growth and record quarterly operating income. Earnings and cash flow will most likely hit new records this year.

AOSL stock has a low forward P/E of 7.8x. Given a projected five-year earnings growth rate of 17% annually, the company’s PEG ratio of 0.6 implies that AOSL stock is undervalued relative to its earnings growth potential. Investors may scoop the cheap semiconductor stock today before its valuation recovers.

Micron Technology (MU)

Micron Technology (NASDAQ:MU) is a flash memory (NAND flash) and computer memory (DRAM) manufacturer that’s expected to grow sales by 20% in 2022 and 2023. MU stock’s 24% decline during a market crash this year has rendered the semiconductor’s stock too cheap to ignore right now.

Memory demand is rising and the company is investing more than $150 billion to capture more market share. MU stock trades at a cheap forward P/E ratio of 5.8x. Analysts expect earnings to grow by nearly 30% every year for the next five years. A low forward PEG ratio of 0.2 implies MU stock is undervalued relative to its expected earnings growth rate.

The semiconductor giant’s dividend may yield a low 0.6% annually, but investors may take the payout as an assurance from management that the company’s operations are cash-rich enough to pay out some to loyal shareholders.

ASE Technology Holding Co. (ASX)

ASE Technology Holding Co. (NYSE:ASX) is a Taiwan-based semiconductor assembly and testing firm. It provides electronic manufacturing services, testing and packaging services to a growing semiconductor manufacturing industry that struggled to meet customer demand last year.

ASX stock trades at a low forward P/E multiple of 7.3x. A well-informed Wall Street projects a strong 34% annualized earnings growth rate for the company over the next five years. A low forward PEG ratio of 0.2 implies ASX stock is so cheap that its future earnings growth is not adequately priced into its current valuation.

Most noteworthy, ASX stock flaunts a 4.5% dividend yield at the time of writing. Investors will get paid to wait as shares rebound to fair value.

Cohu Inc. (COHU)

Cohu Inc. (NASDAQ:COHU) supplies semiconductor test and inspection equipment and services to original equipment manufacturers and test subcontractors. It saw growing demand from car manufacturers as the automotive industry turns cars into robots, and its mobility segment serves the growing 5G network and remains robust.

The company’s sales reached a record $887 million in 2021. Management has midterm financial targets of $1 billion in annual revenue and $4 in non-GAAP earnings per share over the next three to five years.

Although COHU’s $198 million revenue during the first quarter was 12% weaker YOY, sales were compared to a record quarter last year. Sales run rates remain higher than pre-pandemic levels. Actually, first-quarter revenue and earnings widely beat analyst expectations by 18% and 2%, respectively.

COHU appears to be a cheap semiconductor stock by most fundamental measures today. Its forward P/E ratio of 9x is far below an industry P/E of 21x. A low forward PEG ratio of 0.2 implies shares are undervalued relative to earnings growth potential.

Vishay Intertechnology Inc. (VSH)

Vishay Intertechnology Inc. (NYSE:VSH) is a semiconductor designer and manufacturer serving industrial, computing, automotive, consumer, military aerospace and medical markets globally. VSH stock has declined by 10% this year as a non-selective market selloff renders shares too cheap to ignore.

After the recent market turmoil, VHS stock spots a low forward P/E ratio of 7.6x. Wall Street believes the company could grow its earnings per share by 22.7% annually over the next five years. A low forward PEG ratio of 0.3 implies that VSH stock is underpriced relative to its earnings growth potential.

To add more, Vishay Intertechnology stock trades at a price to sales (P/S) multiple of 0.8x, compared to its industry’s average P/S multiple of 5x.

Investors who buy VSH stock today may receive a regular dividend that yields 2.1% annually.

Amkor Technology (AMKR)

Amkor Technology (NASDAQ:AMKR) provides outsourced semiconductor packaging and test services to electronic device manufacturers, fabless semiconductor companies and foundries.

AMKR stock has declined by 22% YTD. Investors were rattled by a continued shutdown in China due to Covid-19 as Amkor’s Shanghai operations were impacted. That said, management’s net sales guidance of $1.47 billion to $1.57 billion for the second quarter shows a minimal sales impact.

The company still expects to make $90 million to $140 million in net income for this quarter, or 37 cents to 57 cents per diluted share.

AMKR is a cheap semiconductor stock that may remain significantly profitable and cash-rich during a bear market in 2022. What’s more, it has a Forward P/E ratio of 6.8x and a forward PEG ratio of 0.3, which implies shares are too cheap for long-term-oriented investors to overlook right now.

On the date of publication, Brian Paradza held Advanced Micro Devices (AMD) common stock. He did not hold (either directly or indirectly) any positions in any other securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.