Bank of America Securities analyst Vivek Arya said skepticism around artificial intelligence (AI) spending is understandable but overstated, calling it a healthy correction within a long-term growth cycle. The analyst reiterated Buy ratings on leading data center and semiconductor capital equipment stocks — including Nvidia Corp (NASDAQ:NVDA), Broadcom Inc (NASDAQ:AVGO), Advanced Micro Devices, Inc (NASDAQ: AMD (NASDAQ: AMD), Lam Research Corp (NASDAQ:LRCX), KLA Corp (NASDAQ:KLAC), and Applied Materials Inc (NASDAQ:AMAT) — citing their strong leverage to the ongoing AI infrastructure buildout.
He said last week's 7–8% drop in large-cap AI chip stocks was driven by macro noise — such as U.S. government shutdown concerns, weak jobs data, tariff volatility, and misinterpreted OpenAI commentary — rather than any weakness in the AI spending cycle.
