Wall Street urges 'buying the dip' after US tech stocks selloff; Morgan Stanley says next two to three weeks are a time to add positions.

November 8 — After a sell-off in US tech stocks, several Wall Street strategists still view it as a correction and a buying opportunity. The S&P 500 fell 4.4% on Thursday, while the Nasdaq 100 dropped 6.4%; although the S&P 500 rebounded 0.3% on Friday, it has still fallen 2.5% cumulatively since the midterm election results were announced. The market's main concern is that after the Democratic victory, regulation of data center construction and the AI industry may tighten.

Mike Wilson, Chief US Equity Strategist at Morgan Stanley, said: "The next two to three weeks are the time to add exposure." He maintained his year-end target of 8,000 for the S&P 500, about 8.4% above Friday's close. Data compiled by Bloomberg shows that the average year-end target for the index among major Wall Street institutions is 7,973.

Ed Yardeni, Chief Investment Strategist at Yardeni Research, characterized the decline as a "correction" rather than a bursting bubble, with a year-end target of 7,900. He believes the AI bubble is gradually deflating, but that does not mean there will be a burst that causes a major negative shock to the economy, and said good buying opportunities have already begun to appear. Jonathan Golub, Chief Equity Strategist at Seaport Global Holdings, gave a year-end target of 8,200, saying he is a "resolute buyer" and does not think the market should rush to exit after adjusting due to the election results.

Ohsung Kwon, Chief Equity Strategist at Wells Fargo, is relatively cautious, with a year-end target of 7,700. He noted that semiconductors and AI infrastructure trades have been important forces supporting the market this year, but the sector will remain under pressure. The Philadelphia Semiconductor Index fell 12% on Thursday and is down 36% cumulatively from its June high; for the market to continue rising, it still needs contributions from high-beta trades.

However, Kwon believes that if concerns about shrinking AI investment persist, tech giants such as Alphabet and Amazon may instead find support: the market may expect these companies to be forced to cut capital spending, thereby improving earnings expectations. He said: "We don't want to be overly bearish here." Several strategists still see this sell-off as a signal that the correction is nearing its end, but whether that judgment holds depends on the actual impact of policy on AI infrastructure investment.