Multiple Wall Street institutions collectively call for "buying the dip" in semiconductors: The long-term logic of AI remains unchanged, but investment has entered an era of selective picks.

BlockBeats news, July 7th, as the semiconductor sector continues to pull back recently, multiple Wall Street institutions have spoken out, generally believing that the current correction offers investors a "buy the dip" opportunity. However, unlike past advice to allocate broadly across the semiconductor sector, institutions generally believe that AI investment has entered a phase of stock picking.

Goldman Sachs said that AI chip trading has entered a phase where selectivity is more important, and does not recommend continuing to "buy the basket" of semiconductor stocks. It remains bullish on sub-sectors such as CPUs, ASICs, memory, and semiconductor equipment, and specifically named AMD and Applied Materials as favorites.

JPMorgan believes that the recent pullback in semiconductor stocks is a favorable entry window. Demand for AI chips is still in a long-term upcycle, and new capacity is not expected to be significantly released until around 2028. The industry's supply-demand dynamics remain healthy.

Bank of America maintains an optimistic view on the long-term boom cycle of AI semiconductors, believing the industry is still in the middle of an 8-10 year growth cycle. The global semiconductor market size is still expected to expand continuously, and it recommends allocating to industry leaders such as Nvidia, Broadcom, Lam Research, and KLA.

UBS stated that the long-term investment logic for AI has not changed. Short-term volatility in the semiconductor sector instead provides long-term investors with opportunities to gradually build positions, recommending buying the dip during market adjustments.

Morgan Stanley, on the other hand, believes that the long-term outlook for AI chips remains positive. However, as the sector has risen significantly, the market will pay more attention to earnings delivery capabilities going forward. Funds may gradually rotate from some chip stocks to AI infrastructure beneficiaries such as cloud computing. Investors should focus more on stock selection.

Overall, multiple Wall Street institutions including Goldman Sachs, JPMorgan, Bank of America, and UBS have recently released similar signals: the semiconductor pullback is not the end of the AI rally but provides a new entry window. However, the market has moved from a "sector-wide rally" to a "picking leaders" phase. Future performance will depend more on companies' ability to deliver earnings and the sustainability of AI infrastructure demand.