4 months ago
Key Takeaways
- As galore spot stocks autumn connected worries astir tougher waste and acquisition restrictions and geopolitical tensions, analysts suggested fears whitethorn beryllium overblown, offering investors an opportunity to "buy nan dip."
- Wedbush and Jefferies analysts dismissed caller governmental rhetoric arsenic "noise" successful nan spot companies' artificial intelligence (AI) communicative pinch constricted impact.
- Bank of America analysts said nan caller volatility could coming an "enhanced opportunity" to bargain shares of companies for illustration AI darling Nvidia.
- UBS analysts noted nan semiconductor assemblage tin beryllium prone to volatility, particularly successful an predetermination year, and recommended that investors attraction connected nan semipermanent worth of AI exposure.
As many chip stocks autumn connected worries astir tougher waste and acquisition restrictions and geopolitical tensions, analysts indicated fears whitethorn beryllium overblown, offering an opportunity for investors to "buy nan dip," citing imaginable maturation from surging artificial intelligence (AI) demand.
Shares of chipmakers Advanced Micro Devices (AMD), Qualcomm (QCOM), TSMC (TSM), and others were lower, while AI darling Nvidia (NVDA) wavered betwixt gains and losses successful intraday trading Thursday after Wednesday's sell-off.
'Noise' successful nan AI Bull Thesis
Concerns that geopolitical tensions could bring tech stocks' AI-fueled maturation to a halt are improbable to "move nan needle," according to Wedbush analysts.
"The governmental rhetoric during this governmental ambiance and Beltway races will beryllium large but yet conscionable for illustration our position since 2016 nan bark will beryllium measurement worse than nan wound connected nan US/China Cold Tech War fears," nan analysts wrote.
Jefferies analysts besides dismissed geopolitical worries arsenic much "noise" than substance, pinch constricted impact, adding they viewed "crowded positions and investors' interest astir AI's ROI" arsenic much apt sources of concern.
An Opportunity To 'Buy nan Dip?'
Bank of America analysts said they "see existent volatility arsenic enhanced opportunity in companies pinch best-profitability," pointing to Nvidia among others.
Wedbush analysts besides remained patient successful their bullish position of nan AI play, saying they spot tech stocks going higher successful nan 2nd half of 2024 into 2025, adding that they judge upcoming second-quarter net will beryllium "a awesome affirmative catalyst for nan tech sector."
UBS analysts noted that nan semiconductor assemblage tin beryllium prone to volatility, particularly during an predetermination twelvemonth successful nan U.S., and said they "recommend focusing connected building semipermanent vulnerability to AI, which we expect to beryllium a cardinal driver of equity returns successful nan coming years."
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