Why Experts See Monday's AI Stock Drop as a Prime Investment Opportunity
Discover why Wall Street analysts consider the recent AI stock selloff a strategic chance to invest in leading tech companies.
Key Highlights
- Following the rise of Chinese AI app DeepSeek as the top free app in the U.S., major AI stocks like Nvidia experienced a significant decline.
- Wedbush analysts label this dip a 'golden buying opportunity' for shares in Nvidia, Microsoft, Alphabet, Palantir, and other key AI players.
- Additional analysts recommend considering stocks such as Broadcom, Applied Materials, Marvell Technology, AMD, and Micron Technology.
The unexpected surge of DeepSeek, a Chinese AI startup, displacing OpenAI's app on Apple's U.S. charts triggered a selloff in AI-related stocks, pulling down the Nasdaq Composite by over 3%. This shift raised concerns about the necessity and value of costly AI technologies, given DeepSeek's efficient model performance with lower computing demands.
Despite the market reaction, several Wall Street experts view this as an ideal moment to invest. Wedbush highlights Nvidia and other American AI giants as strong buys, emphasizing that while DeepSeek's achievements are notable, major U.S. companies are unlikely to adopt their technology for AI infrastructure.
Bernstein analysts describe the selloff as exaggerated and maintain positive ratings for Nvidia, Broadcom, Qualcomm, and Applied Materials. Similarly, Citi analysts uphold a 'buy' rating on Nvidia, citing significant AI infrastructure investments such as the $500 billion Stargate project announced by President Trump.
Raymond James analysts believe DeepSeek's progress will accelerate innovation among U.S. tech leaders like Microsoft, Google, and Amazon, benefiting established firms. They reaffirm 'strong buy' ratings for Nvidia and ASML, along with 'outperform' ratings for Marvell Technology, Arm, AMD, Micron Technology, Lam Research, Applied Materials, and KLA.
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