Episode summary
Do You Have the Guts to Buy the AI Stocks Right Now?
Zacks Market Edge
· · 37 min · Hosts: Tracey Ryniec, Mark Zinski, Neena Mishra, Ethan Feller
Summary
Tracy Reinik argues that the recent selloff in AI-related stocks has created buying opportunities rather than broken the trade. She says the earnings and sales outlook for the group has not changed, even though the stocks have fallen sharply from highs and some have bounced only partially off the lows. The episode focuses on six names across chips, memory, cooling, infrastructure, and data-center equipment: Broadcom, Bloom Energy, SanDisk, Comfort Systems, Sterling Infrastructure, and Vertiv.
The host is most constructive on the names that have pulled back the most, especially Sterling Infrastructure, which she says has been hit hardest by profit-taking and fear around the AI buildout. She also remains positive on Broadcom, SanDisk, Comfort Systems, and Vertiv, citing strong earnings growth, favorable analyst revisions, and lower valuations than earlier in the year. Bloom Energy is presented as a higher-growth, more expensive stock, but still a favored momentum name after a strong run.
Her core message is that investors who want exposure to the AI trade may need to tolerate volatility and use pullbacks or dollar-cost averaging. She says the story has not died, the backlog and demand trends remain intact, and the infrastructure side may offer the best opportunities because those stocks are less widely owned.
Key takeaways
- The host says the AI selloff has made several names cheaper without changing their earnings or sales outlook.
- Broadcom is still favored on growth, with 2026 earnings expected to rise 72% and a forward P/E near 30.
- SanDisk is described as a cyclical memory name with unusually strong earnings growth and a forward P/E of just 8.16.
- Sterling Infrastructure is the most beaten-down name in the group, but the host says the valuation reset makes it attractive again.
- Vertiv remains a preferred AI infrastructure holding despite a higher valuation, because the earnings and sales trajectory is still strong.
Notable quotes
“I think this is a buying opportunity once again in the AI stocks”
“The earnings outlook and sales outlook hasn't changed and so you're getting a bargain on some of these names”
“Sterling Infrastructure, ticker STRL. You see it there in the like aqua color down there. It's down 42.9% in the last three months”
How the episode opens
Stocks, bonds, ETFs, straight out of downtown Chicago. This is Zach's Market Edge. Welcome to Zach's Market Edge, the podcast about investing in your life.
I'm your host, Tracy Reinik, and this week I'm going solo to talk about what else? The AI stocks again. But I've been noticing some of you have been giving me a bit of a hard time on various social media platforms like X and Stock Twits about my prior podcasts on the AI stocks.
And now that they've sold off and some of them have sold off quite dramatically, you're coming back at me with, you know, what do you think now, Tracy? Now that it's down 50%. Well, you know what?
I think this is a buying opportunity once again in the AI stocks and for these I'm not just going to cover only the infrastructure stocks today. I am going to talk about a chip name and in the memory side because everything has weakened here some more than others. So there's some areas that are a little bit more of a deal than others but they're all down from their highs.
Do you have the guts? Yes, I said it. guts to buy these stocks after the selloff.
If you like them at the highs, you're going to like them after this selloff because the shares are much cheaper. The earnings outlook and sales outlook hasn't changed and so you're getting a bargain on some of these names, but you do have to have the guts to buy now. So, let's dive right in.
Um, I'm going to show a chart first of all of what has been happening with a bunch of these AI stocks and uh so we can take a look just how severe has the sell-off been.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- ai stocks
- semiconductors
- memory stocks
- ai infrastructure
- market downturn
Watch the episode
Watch “Do You Have the Guts to Buy the AI Stocks Right Now?” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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