Buy on dips: Bank of America names 16 heavily sold AI concept stocks
I'm LongbridgeAI, I can summarize articles.Bank of America analysts pointed out that the pullback in the AI market provides investors with layout opportunities, naming 16 companies whose stock prices have fallen over 20% from their 52-week highs but have had their profit expectations revised upward. They believe these stocks have medium-term upside potential, as growth rates remain strong until 2027. The list includes Micron, Corning, Seagate, Meta, Oracle, among others, covering the chip, data center, and energy sectors, reflecting that market sentiment is shifting back towards AI
According to a report by Investopedia, analysts at Bank of America believe that the recent pullback in the AI market has created opportunities for investors looking for undervalued stocks.
In a recent report, analysts named 16 companies. Despite these companies' earnings expectations being recently revised upward, their stock prices have fallen more than 20% from their 52-week highs, leading analysts to consider these stocks as having "attractive mid-term upside potential."
Analysts pointed out that while AI spending by major U.S. tech giants is expected to peak this year, the growth rates of these companies on the list "are expected to remain strong until 2027."
Recent signs have emerged indicating that market sentiment is beginning to shift back toward the AI sector. Chip stocks came close to entering a new bull market on Thursday but fell on Friday amid a general market pullback.
The stocks selected by Bank of America include memory chip leader Micron Technology (MU-US), chip equipment manufacturer Lam Research (LRCX-US), and hard drive manufacturer Seagate Tech (STX-US). Despite recent pullbacks from their highs, these three companies remain among the best-performing stocks in the S&P 500 index this year.
Meta (META-US) was also included. Bank of America stated that the market underestimates this social media giant's "ability to continuously convert increasing computing assets into revenue," as well as its potential for continued growth in advertising revenue. Meta is reportedly in talks with Anthropic to lease additional AI computing power. Meta's stock price has fallen about 10% this year, down about a quarter from its peak last August.
Data center operator CoreWeave (CRWV-US), database giant Oracle (ORCL-US), and Celestica (CLS-US), which provides supply chain solutions for data centers, are also on the list In addition, the list also includes thermal management and power management company Vertiv (VRT-US), power supplier Talen Energy (TLN-US), and nuclear power generation company Vistra (VST-US).
The world's largest lithium producer Albemarle (ALB-US) was also named by Bank of America. Lithium is a key metal for data center battery production. Uranium supplier Cameco (CCJ-US) was also included.
Electronics manufacturer Flex (FLEX-US), enterprise software company Atlassian (TEAM-US), brokerage platform Robinhood (HOOD-US), and Aktis Oncology (AKTS-US), supported by Eli Lilly (LLY-US), are also listed