Tech Sell-Off Deepens Amid DeepSeek AI Concerns—But Some Stocks Shine

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  Posted by John Deo Jan 30 - Filed in General - #financialmodelingprep  - 18 views
  

  The stock market plunged on Monday as AI-related stocks faced heavy selling pressure, with the S&P 500 falling 1.46% and the Nasdaq dropping 3%. The sell-off was triggered by Chinese AI startup DeepSeek’s breakthrough, raising concerns over lower AI infrastructure spending in the near term.

  BofA’s Top Buy Opportunities Amid AI Volatility

  Despite the sharp drop, Bank of America (BofA) analysts identified idiosyncratic buying opportunities in stocks with strong non-AI growth drivers:

  • Corning Inc (NYSE:GLW)
  • Hewlett Packard Enterprise Co (NYSE:HPE)
  • Western Digital (NASDAQ:WDC)
  • Seagate Technology PLC (NASDAQTX)

  Additionally, Apple (NASDAQ:AAPL) and IBM (NYSE:IBM) were highlighted as defensive plays with strong growth potential amid market uncertainty.

  Apple: The AI Edge Play?

  While most AI stocks collapsed, Apple shares gained 3%, with analysts citing its edge AI advantage and earnings resilience:

  “If DeepSeek truly lowers the cost of AI inferencing and better models are developed faster and cheaper, Apple, as the ultimate edge device maker, stands to benefit.”

  What’s Next for Apple?

  BofA analysts see several key catalysts for AAPL:

  • March-April 2025: Expected launch of the iPhone SE
  • Modem Insourcing: Boosting gross margins
  • June 2025 WWDC: AI-driven use cases in focus
  • September 2025: iPhone 17 release

  Sector & Company Ratings Outlook

  • Company Rating API can help track Apple and IBM’s updated investment ratings amid changing AI sector sentiment.
  • Sector Historical API provides data on how the tech sector has performed relative to the market during past AI disruptions.

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  Final Thoughts

  While AI-driven uncertainty caused a sharp sell-off, analysts see opportunities beyond AI hyperscalers.

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