Chip Stocks Sell-Off Fuels Calls To Buy the Dip [Video]

As many chip stocks fall on worries about tougher trade restrictions and geopolitical tensions, analysts indicated fears may be overblown, offering an opportunity for investors to “buy the dip,” citing potential growth from surging artificial intelligence (AI) demand.

Shares of chipmakers Advanced Micro Devices (AMD), Qualcomm (QCOM), TSMC (TSM), and others were lower, while AI darling Nvidia (NVDA) wavered between gains and losses in intraday trading Thursday after Wednesday’s sell-off.

Concerns that geopolitical tensions could bring tech stocks’ AI-fueled growth to a halt are unlikely to “move the needle,” according to Wedbush analysts.

“The political rhetoric during this political climate and Beltway races will be loud but ultimately just like our view since 2016 the bark will be way worse than the bite on the US/China Cold Tech War fears,” the analysts wrote.

Jefferies analysts also dismissed geopolitical worries as more “noise” than substance, with limited impact, adding they viewed “crowded positions and investors’ worry …