AI Stocks Rebound with ‘Fundamentals Still Intact,’ Says UBS | Global News Avenue

AI stocks rebounded Tuesday as U.S. and Canadian officials backed the threat to escalate the trade war between the two countries.

Supercomputer (SMCI) is the best performing stock in the S&P 500, up 10.7%. Several other popular AI stocks were among the best performers of the day, including nuclear power provider Viscosity (vst), up 5.4% and AI chip giant Nvidia (NVDA), up 1.7%.

AI stocks may have gained some support on Tuesday’s Tuesday, willing to buy dipping sauces after a compelling pullback. Stocks of AI software company Palantir (bacteria) Loss of about 40% Their value is between the mid-February and the end of yesterday’s record. Stocks rebounded 4% today. Applovin(app) AI fuel growth surged more than 700% last year, down more than 50% from the record height in mid-February, and then rebounded about 8%. Tesla (TSLA), which one Falling 15% yesterday To end the 53% discount after the election, it rose nearly 4% on Tuesday.

High valuations are one of the main reasons why AI stocks are sold at a very serious rate by tariffs. But AI trade has lost momentum before Trump’s tariffs swept across the wider stock market. Worrying that overspends slows growth on AI infrastructure AI waist circumference Nvidiaand Competition from Chinese competitors In late January and early February, lead AI gatherings to the stalls.

UBS analysts said in a report on Tuesday that the current sell-off will work like a similar rout in 2018. Analysts believe that in Trump’s first semester, the technological recession In Trump’s first semester, geopolitics and fundamental-related noise briefly obscured investors’ perceptions of what was originally powerful, and what is now the current perspective.

Analysts point out that the risk of a trade war is getting higher and higher. “However, as AI fundamentals remain intact, investors should not ignore long-term risk returns and should exploit extreme volatility by buying quality AI stocks and structural strategies.”