Some Analysts See Monday's Selloff as a 'Golden' Buying Opportunity. Here's What They Like

Monday’s DeepSeek-driven selloff could beryllium an opportunity to prime up beaten-down AI stocks, according to immoderate Wall Street analysts. 

After an app from Chinese AI startup DeepSeek knocked 1 from OpenAI disconnected nan apical of Apple's database of most-downloaded free U.S. apps, Nvidia (NVDA) and a wide scope of different AI-related stocks tumbled, dragging nan tech-heavy Nasdaq Composite down complete 3%. Underpinning nan declines: nan interest that nan capacity of DeepSeek's exemplary rivals its U.S. counterparts while requiring little computing power, raising questions astir nan marketplace for and necessity of costly AI technology.

Some Wall Street watchers saw an opportunity to bargain nan dip. Wedbush analysts called it a “golden buying opportunity” to ain Nvidia, on pinch Microsoft (MSFT), Alphabet (GOOGL), Palantir (PLTR), and different heavyweights of nan American AI ecosystem. 

The analysts called DeepSeek’s accomplishments “impressive,” but suggested awesome U.S. companies are improbable to usage a Chinese startup for illustration DeepSeek to motorboat their AI infrastructure, adding that “launching a competitory LLM exemplary for user usage cases is 1 thing… launching broader AI infrastructure is simply a full different ballgame and thing pinch DeepSeek makes america judge thing different.” 

Bernstein analysts called nan marketplace guidance “overblown,” and said they proceed to position AI stocks successful their sum favorably, particularly Nvidia and Broadcom (AVGO). Bernstein maintained “outperform” ratings for some stocks, arsenic good arsenic Qualcomm (QCOM) and Applied Materials (AMAT). 

Citi analysts, who maintained a “buy” standing for Nvidia, said caller AI spending measures, including President Trump’s announcement of a $500 cardinal AI infrastructure task called Stargate constituent to nan continued request for precocious U.S. chips. 

Raymond James analysts added that DeekSeek’s advances could besides push U.S. hyperscalers for illustration Microsoft, Google, and Amazon (AMZN) to enactment pinch greater urgency, to nan use of much established firms. They reiterated a “strong buy” for Nvidia and ASML (ASML), and "outperform” ratings for Marvell Technology (MRVL), Arm (ARM), AMD (AMD), Micron Technology (MU), Lam Research (LRCX), Applied Materials, and KLA (KLAC).