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

Monday’s DeepSeek-driven selloff could be an opportunity to pick up beaten-down AI stocks, according to some Wall Street analysts. 

After an app from Chinese AI startup DeepSeek knocked one from OpenAI off the top of Apple’s list of most-downloaded free U.S. apps, Nvidia (NVDA) and a wide range of other AI-related stocks tumbled, dragging the tech-heavy Nasdaq Composite down over 3%. Underpinning the declines: the concern that the performance of DeepSeek’s model rivals its U.S. counterparts while requiring less computing power, raising questions about the market for and necessity of expensive AI technology.

Some Wall Street watchers saw an opportunity to buy the dip. Wedbush analysts called it a “golden buying opportunity” to own Nvidia, along with Microsoft (MSFT), Alphabet (GOOGL), Palantir (PLTR), and other heavyweights of the American AI ecosystem. 

The analysts called DeepSeek’s accomplishments “impressive,” but suggested major U.S. companies are unlikely to use a Chinese startup like DeepSeek to launch their AI infrastructure, adding that “launching a competitive LLM model for consumer use cases is one thing… launching broader AI infrastructure is a whole other ballgame and nothing with DeepSeek makes us believe anything different.” 

Bernstein analysts called the market reaction “overblown,” and said they continue to view AI stocks in their coverage favorably, particularly Nvidia and Broadcom (AVGO). Bernstein maintained “outperform” ratings for both stocks, as well as Qualcomm (QCOM) and Applied Materials (AMAT). 

Citi analysts, who maintained a “buy” rating for Nvidia, said recent AI spending measures, including President Trump’s announcement of a $500 billion AI infrastructure project called Stargate point to the continued need for advanced U.S. chips. 

Raymond James analysts added that DeekSeek’s advances could also push U.S. hyperscalers like Microsoft, Google, and Amazon (AMZN) to act with greater urgency, to the benefit of more 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).