Bank of America analysts highlight significant investment opportunities in tech stocks driven by the expanding AI data center market. The analysis suggests that the recent dip in tech stocks presents a buying opportunity, particularly in companies positioned to benefit from AI infrastructure growth. The report specifically focuses on the data center AI market, projected to reach $150 billion by 2027. Key companies mentioned include Nvidia, AMD, and Intel, with emphasis on their roles in developing AI chips and data center technologies. The analysts point to the emergence of new AI models like Deepseek, which demonstrates the growing demand for data center capacity and specialized AI hardware. The report emphasizes that despite recent market volatility, the fundamental growth drivers for AI infrastructure remain strong, with data centers being a critical component of AI development and deployment. The analysis also highlights the increasing competition in the AI chip market, suggesting that while Nvidia currently dominates, other players are making significant strides in developing competitive solutions. The report concludes that the current market correction provides an attractive entry point for investors looking to capitalize on the long-term AI infrastructure growth trend, with particular emphasis on companies involved in data center hardware, chip manufacturing, and AI-specific computing solutions.
Source: https://www.businessinsider.com/tech-stocks-buy-the-dip-deepseek-data-center-ai-bofa-2025-1