Several Wall Street institutions collectively call to "buy the dip" in semiconductor stocks: The long-term logic of AI remains unchanged, but investing has entered an era of selectivity

BlockBeats news, July 7th — As the semiconductor sector continues its recent correction, several Wall Street institutions have spoken out, generally believing that the current adjustment offers investors an opportunity to "buy on the dip." However, unlike previous recommendations for broad allocation of the semiconductor sector, institutions believe AI investment has entered a phase where investors need to select individual stocks.

Goldman Sachs stated that AI chip trading has entered a phase where careful selection is more important and does not recommend continuing to "buy the whole basket" of semiconductor stocks. The bank remains optimistic about CPUs, ASICs, memory, and semiconductor equipment, and specifically favors AMD and Applied Materials.

JPMorgan believes that the recent pullback in semiconductor stocks offers a good window for allocation. The demand for AI chips remains in a long-term growth cycle, and new production capacity is expected to be noticeably released only around 2028. The supply and demand dynamics in the industry remain healthy.

Bank of America maintains its optimistic outlook on the long-term AI semiconductor cycle, believing the industry is still in the middle of an 8- to 10-year growth cycle. The global semiconductor market size is expected to continue expanding. The bank recommends focusing investment on leading companies such as Nvidia, Broadcom, Lam Research, and KLA.

UBS stated that the long-term logic for AI investment hasn't changed, and short-term volatility in the semiconductor sector actually provides long-term investors with opportunities to gradually build positions. UBS recommends taking advantage of market adjustments to buy on the dip.

Morgan Stanley believes that the long-term outlook for AI chips remains strong. However, as the sector has risen sharply, the market will pay more attention to the ability to realize profits in the future. Funds may gradually rotate from certain chip stocks toward AI infrastructure segments such as cloud computing. Investors should focus more on stock selection.

Overall, institutions such as Goldman Sachs, JPMorgan, Bank of America, and UBS have recently sent similar signals: the semiconductor correction does not mark the end of the AI market, but provides a new window for deployment. However, the market has shifted from broad sector gains to a focus on selected leaders; future performance will depend more on companies' ability to deliver results and the continued demand for AI infrastructure.