Analysts Urge Buying 5 AI Infrastructure Stocks After Sentiment-Driven Selloff
Updated
Updated · InvestorPlace · Aug 3
Analysts Urge Buying 5 AI Infrastructure Stocks After Sentiment-Driven Selloff
3 articles · Updated · InvestorPlace · Aug 3
Summary
Five AI infrastructure names—Palantir, Caterpillar, Applied Optoelectronics, Fabrinet and Nebius—were flagged as buy-the-dip picks after a late-July AI sentiment shock knocked many growth stocks down 40% to 65%.
The bullish call rests on fundamentals holding up: all four hyperscalers raised 2026 capital-expenditure guidance and gave upbeat 2027 commentary, while analysts kept lifting earnings estimates even as share prices fell.
Palantir led the case with 93% revenue growth, 149% commercial growth and a retake of its 200-day moving average; Caterpillar posted 24% revenue growth and a $72.1 billion backlog tied to data-center buildouts.
Applied Optoelectronics and Fabrinet were pitched as optical-networking beneficiaries as AI clusters demand faster transceivers, while Nebius was highlighted for projected revenue jumping from about $530 million in 2025 to $3.3 billion in 2026.
The broader argument is that the recent AI infrastructure drop reflected sentiment rather than business deterioration, echoing earlier bullish calls on Nvidia, Micron and Broadcom as AI spending accelerates.