Multiple Wall Street Institutions Advocate "Buy the Dip" in Semiconductors: AI Long-Term Thesis Unchanged, but Investment Enters Era of Selectivity

BlockBeats News, July 7th. Recently, amid a continuous pullback in the semiconductor sector, several Wall Street institutions have successively voiced their opinions, generally believing that the current correction has provided investors with a "buy the dip" opportunity. However, unlike past recommendations to fully allocate to the semiconductor sector, institutions generally believe that AI investments have entered a phase of selecting individual stocks.

Goldman Sachs stated that AI chip trading has entered a stage that emphasizes selection, no longer recommending a "basket buy-in" of the semiconductor sector. They continue to be optimistic about CPU, ASIC, memory, and semiconductor equipment subsectors, specifically mentioning their positive outlook on AMD and Applied Materials.

JPMorgan Chase believes that the recent pullback in semiconductor stocks is a good buying opportunity. The demand for AI chips is still in a long-term uptrend, with additional production capacity expected to be significantly released around 2028. The industry supply-demand balance remains healthy.

Bank of America maintains an optimistic outlook on the long-term prosperity cycle of AI semiconductors, believing that the industry is still in the midst of an 8 to 10-year growth cycle. The global semiconductor market is expected to continue expanding, and they recommend focusing on industry leaders such as Nvidia, Broadcom, Lam Research, and KLA.

UBS stated that the long-term investment logic in AI has not changed. The short-term fluctuations in the semiconductor sector have actually provided gradual buying opportunities for long-term investors, recommending taking advantage of market adjustments to buy the dip.

Morgan Stanley, on the other hand, believes that the long-term outlook for AI chips remains positive. However, with the sector having risen significantly, the future market will pay more attention to profit realization capabilities. Funds may gradually rotate from some chip stocks to AI infrastructure beneficiaries such as cloud computing. Investors should focus more on individual stock selection.

Overall, several Wall Street institutions such as Goldman Sachs, JPMorgan Chase, Bank of America, and UBS have recently released similar signals: the semiconductor pullback does not mark the end of the AI trend but rather provides a new buying opportunity window. However, the market has transitioned from the previous "sector-wide surge" to a "selected leaders" phase. Future performance will increasingly depend on companies' performance realization capabilities and the sustainability of AI infrastructure demand.