While everybody seemingly loves chip manufacturer Nvidia (NASDAQ:NVDA), its overheated nature organically yields a discussion about alternative chip stocks to NVDA. Don’t get me wrong, Nvidia is an awesome company. And sometimes, just because an entity is overbought doesn’t mean it will correct. Instead, this framework simply means that demand effectively outpaces supply.

Nevertheless, investors may want to consider other chip stocks to buy not named Nvidia. Almost like clockwork, once the earlier traders of NVDA have enjoyed the fruits of their labor so to speak, they’ll probably secure profits to find the next big opportunity. Realistically, then, the hot ticker may be facing a corrective phase. Also, broader economic circumstances might not justify heavy exposure to oversaturated market ideas. With factors such as mass layoffs imposing a contradiction to the seemingly robust workforce, it may be better for investors to consider high-potential chip stocks that are on relative discount. Below are seven such ideas to consider.

Diodes (DIOD)

Though not nearly as exciting as Nvidia, Diodes (NASDAQ:DIOD) ranks among the most relevant alternative chip stocks to NVDA. A global manufacturer and supplier of application-specific standard products within the discrete, logic, analog, and mixed-signal semiconductor markets, Diodes offers a utilitarian profile. It’s also a solid performer, with DIOD gaining nearly 21% since the Jan. opener.

For comparison, NVDA gained just over 206% during the same period. I’m not going to say that DIOD will duplicate such a performance. However, what makes the latter one of the chip stocks to buy is its value proposition. Per data from Gurufocus, the market prices Diodes shares at a trailing multiple of 12.85. In contrast, the semiconductor industry’s median earnings multiple stands at 24.3.

Also, the company benefits from a strong balance sheet. In particular, its equity-to-asset ratio clocks in at 0.7 times, ranking better than 61.21% of its peers. Also, its Altman Z-Score pings at 6.88, indicating low bankruptcy risk. Thus, DIOD is one of the high-potential chip stocks that likely won’t leave you stranded.

Qualcomm (QCOM)

While most of the alternative chip stocks to NVDA on this list are not the most well-known enterprises, the same can’t be said about Qualcomm (NASDAQ:QCOM). Manufacturing semiconductors, software and services related to wireless technology, Qualcomm represents a powerhouse in the 5G rollout. A modest performer relative to its competitors, QCOM gained a respectable 12% since the beginning of this year.

Again, what makes QCOM one of the semiconductor stocks to buy centers on the value proposition. Per Gurufocus, the market prices shares at a forward multiple of 12.21. As a discount to projected earnings, Qualcomm ranks better than 84.62% of its rivals. Also, its price-earnings-growth ratio sits at 0.29 times, well below the sector median stat of 1.19 times.

To be fair, Qualcomm could use a bit of work on the balance sheet. Still, it features fiscal stability with an Altman Z-Score of 5.4. On the operational side, its three-year revenue growth rate (on a per-share basis) comes in at 25%, above 78.48% of its peers. Thus, it’s one of the chip stocks to buy not named NVDA.

Taiwan Semiconductor (TSM)

Since early last year, the world received a shocking lesson in geopolitics, which then clouds the narrative for Taiwan Semiconductor (NYSE:TSM). Without getting bogged down into a historical discussion, it suffices to say that the company’s namesake country faces its own unignorable tensions. Nevertheless, Taiwan Semiconductor owns the distinction of being the world’s most valuable chipmaker via its independent foundry. Further, investors love TSM, with shares jumping over 40% since the start of the year.

I’m not entirely sure if TSM ranks among the alternative chip stocks to NVDA that can also match its performance. That said, I don’t think you can outright ignore the compelling value proposition. Presently, the market prices TSM at a forward multiple of 18.65. As a discount to projected earnings, Taiwan Semi ranks better than 66.15% of the competition.

Also, I appreciate the company’s broad financial strengths. Per Gurufocus, TSM’s Piotroski F-Score clocks in at 7 out of 9, indicating decent operational efficiency. On the top line, its three-year revenue growth rate pings at 28.4%, outflanking 82.74% of its rivals. If you’re seeking top-performing chip stocks, TSM could be it.

Himax Technologies (HIMX)

Another company based in Taiwan, Himax Technologies (NASDAQ:HIMX) is a leading supplier and fabless semiconductor manufacturer according to its corporate profile. Though the rest of the world has attempted to diversify its chip supply chain, countries like Taiwan continue to dominate. It may take years if not decades to overturn this dominance. As a result, HIMX posted a solid performance, gaining almost 15% since the January opener.

Despite running in the black, Himax still ranks among alternative chip stocks to NVDA. Unlike Nvidia, Himax offers a comfortable value play. Per Gurufocus, the market prices HIMX at a forward multiple of 16.25. As a discount to projected earnings, Himax ranks better than 73.85% of companies listed in the semiconductor industry. Plus, HIMX trades at 1.24 times trailing-12-month sales, comparing favorably to the sector median of 2.74 times.

Even with the discount, Himax features an impressive three-year revenue growth rate of 20.8%, above 71.69% of rivals. Also, its book growth rate clocks in at 26.7%, above nearly 77%. Therefore, HIMX is a strong idea for high-potential chip stocks.

Amkor (AMKR)

Headquartered in Tempe, Arizona, Amkor (NASDAQ:AMKR) is a semiconductor product packaging and test services provider. Per its public profile, Amkor designs, packages, and tests integrated circuits for chip manufacturers. Further, the company features an international footprint, with factories in China, Japan, Korea, and many other countries. Since the start of the year, AMKR gained a modest 5%.

Granted, that’s not an exciting backdrop for alternative chip stocks to NVDA. However, if you’re looking for a relevant entity that can rise over the long run, Amkor deserves a closer look. Specifically, the market prices shares at a forward multiple of 16.8. As a discount to projected earnings, AMKR ranks better than 71.54% of its chipmaking peers. Also noteworthy, AMKR trades at a lowly 0.92 times trailing sales.

Despite the bargain stats, Amkor still delivers the goods operationally. Its three-year revenue growth rate clocks in at 19.5%, outpacing 69.04% of sector rivals. For the patient market participant, AMKR is one of the semiconductor stocks to buy.

STMicroelectronics (STM)

Based in Switzerland, STMicroelectronics (NYSE:STM) designs, develops, manufactures, and markets semiconductor products. Per its corporate profile, the tech firm offers discrete and standard commodity components, application-specific integrated circuits, full custom devices, and semi-custom devices for analog, digital, and mixed-signal applications. Another broadly pertinent enterprise, STM easily ranks among the alternative chip stocks to NVDA.

For one thing, you can look at the charts. Since the start of the year, STM soared to over 38%. In the past 365 days, it gained nearly 45% of its equity value. Despite the robust print, STM remains undervalued. Per data from Gurufocus, the market prices shares at a forward multiple of 11.33. As a discount to projected earnings, STMicroelectronics ranks better than 88.46% of the competition.

Also, the company continues to deliver strong operational stats. Its three-year revenue growth rate stands at 19.1%, above 67.55% of sector players. During the same period, its EBITDA growth rate impresses at 39.8%. Finally, its trailing-year net margin hits 25.3%, beating out 90.2% of its rivals. Again, it’s an easy name to raise for chip stocks to buy.

Silicon Motion (SIMO)

A risky but enticing opportunity among alternative chip stocks to NVDA, Silicon Motion (NASDAQ:SIMO) develops NAND flash controller integrated circuits for solid-state storage devices. As well, its public profile indicates that the tech firm is the merchant leader in supplying solid-state drive controllers. Since the beginning of this year, SIMO gained just over 4%. However, in the trailing year, it’s down nearly 21%.

To be sure, chipmakers present a risk because of the economy and also geopolitics. However, Silicon Motion helps assuage some of these concerns with its value proposition. Currently, the market prices SIMO at a trailing multiple of 17.34. As a discount to earnings, Silicon Motion ranks better than 62.54% of the competition. Also noteworthy is that SIMO’s PEG ratio sits at 0.85 times, ranking favorably below 61% of its peers.

Enticingly, Silicon enjoys a rock-solid balance sheet. With zero debt on its books, the company enjoys incredible flexibility, especially at this juncture. Also, its Altman Z-Score pings at just over 10, indicating an extremely low risk of imminent bankruptcy. With a three-year revenue growth rate nearing 30%, SIMO’s a great idea for high-potential chip stocks.

On the date of publication, Josh Enomoto 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.