--- title: "11 AI Stocks to Buy on Dips: 'Don't Waste a Good Sell-Off,' Analyst Says" type: "News" locale: "en" url: "https://longbridge.com/en/news/305474575.md" description: "HSBC's U.S. equity strategy team recommends buying 11 AI-related stocks on market dips, arguing that the recent correction is overdone. The list includes Alphabet, Oracle, GE Vernova, Vertiv, and Bloom Energy, among others. HSBC highlights significant upside potential, with Oracle showing a 148% gap to its target price. The bank believes fundamentals remain healthy despite sharp drops in tech and semiconductor sectors, citing strong order intake and revenue growth for key players." datetime: "2026-11-13T14:07:17.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/305474575.md) - [en](https://longbridge.com/en/news/305474575.md) - [zh-HK](https://longbridge.com/zh-HK/news/305474575.md) generator: "portal-rs" --- # 11 AI Stocks to Buy on Dips: 'Don't Waste a Good Sell-Off,' Analyst Says Investors are paying near five-year-high premiums for toothpaste, cereal and drug stocks. At the same time, they are selling the companies building artificial intelligence at a market discount. HSBC’s U.S. equity strategy team, in a research note titled, “Don’t waste a good sell-off,” named 11 Buy-rated stocks that have been hit as the AI trade unwinds. The list runs from **Alphabet Inc.** (NASDAQ:GOOGL) and **Oracle Corp.** (NYSE:ORCL) to the companies powering data centers, such as **GE Vernova Inc.** (NYSE:GEV), **Vertiv Holdings Co.** (NYSE:VRT) and **Bloom Energy Corp.** (NYSE:BE). ## **The Index Look** | Company | Close (Nov. 12) | HSBC target | Upside | | ---------------------------------------- | --------------- | ----------- | ------ | | **Oracle Corp.** (NYSE:ORCL) | $127.11 | $316.00 | 148.6% | | **Baker Hughes Co.** (NASDAQ:BKR) | $48.86 | $85.00 | 74.0% | | **Bloom Energy Corp.** (NYSE:BE) | $201.93 | $350.00 | 73.3% | | **Applied Materials Inc.** (NASDAQ:AMAT) | $380.95 | $641.00 | 68.3% | | **Vertiv Holdings Co.** (NYSE:VRT) | $209.64 | $336.00 | 60.3% | | **GE Vernova Inc.** (NYSE:GEV) | $818.49 | $1,100.00 | 34.4% | | **Citigroup Inc.** (NYSE:C) | $124.06 | $158.00 | 27.4% | | **Freeport-McMoRan Inc.** (NYSE:FCX) | $60.45 | $77.00 | 27.4% | | **Sempra** (NYSE:SRE) | $78.98 | $97.50 | 23.4% | | **NextEra Energy Inc.** (NYSE:NEE) | $85.29 | $103.00 | 20.8% | | **Alphabet Inc.** (NASDAQ:GOOGL) | $298.70 | $360.00 | 20.5% | *Source: HSBC* ## The Index **Looks Calm. The Sectors Do Not.** - The **SPDR S&P 500 ETF Trust** (NYSE:SPY) is down 2.8% over the past three months. That modest number hides a sharp split. - Over the same period, the **Technology Select Sector SPDR Fund** (NYSE:XLK) has fallen 9.1%, and the **iShares Semiconductor ETF** (NASDAQ:SOXX) has dropped 15.4%. - Meanwhile, the **Health Care Select Sector SPDR Fund** (NYSE:XLV) has gained 12% - The **Consumer Staples Select Sector SPDR Fund** (NYSE:XLP) has climbed 5.9%. According to HSBC, those premiums and discounts are measured on forward price-to-earnings ratios, with tech now cheaper than the S&P 500. “We believe the correction in equity markets has been overdone, especially in these oversold sub-sectors of the markets, including semis, capital goods,” **Nicole Inui**, HSBC’s head of equity strategy for the Americas, said in a note Thursday. Some of those sub-sectors have dropped close to 20% from their peaks, even though, in the bank’s view, fundamentals remain healthy. **Read Also: Wall Street Takes the Chainsaw to Nvidia Targets: One Bank Slashes $465 to $186** ## **Oracle Shows the Widest Gap** Oracle stands out. **Stephen Bersey**, HSBC’s head of U.S. technology research, has a $316 target on the stock, about 149% above Thursday’s close of $127.11. The company reported roughly $664 billion in remaining performance obligations, or contracted revenue still to be booked, equal to 9.25 times its sales over the past 12 months. “We continue to believe that the market is grossly undervaluing Oracle’s stock,” Bersey said. ## **AI Power Names Have Taken the Hardest Hit** Vertiv still sits about 45% below its May peak. However, analyst **Wesley Brooks** said third-quarter organic orders more than doubled, while the stock now trades at 20.5 times 2027 earnings, a 37% discount to its three-year average. At GE Vernova, the sell-off followed fears that gas-turbine orders had peaked. Analyst **Sean McLoughlin** said the company’s strong order intake challenges that view, with turbine prices more than 50% higher than a year ago. Bloom Energy, meanwhile, has deals for 700 megawatts with Google and an initial 1.2 gigawatts with Oracle, according to analyst **Samantha Hoh**. Its revenue rose 145% in the first nine months of the year. For Alphabet, HSBC highlighted that its newest model, Carbon, recorded the highest intelligence score on Artificial Analysis, an independent AI benchmark. Applied Materials carries a $641 target. HSBC’s bull case sees the chip-equipment maker at $827. **Read Also: Nasdaq 100 Turns Green Despite Nvidia's 5% Drop on Huang Exit: Stock Market Today** ## **Beyond Chips and Cloud** Freeport-McMoRan offers exposure to copper and gold, while NextEra Energy and Sempra are bets on rising electricity demand. HSBC expects U.S. power demand to climb about 50% over the next decade. 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