Wall Street Backs AI Chip Stocks Despite July Market Volatility, Sees Competitive Model Upside

BAC0.70%
According to Bank of America, Wall Street analysts remain bullish on artificial intelligence hardware manufacturers and recommend holding these stocks despite recent market turbulence in July. The bank noted that the release of open-source AI models, including China's Kimi K3 launched on July 16, strengthens their positive thesis on memory semiconductors. While Chinese models offer API pricing up to 5–350 times cheaper than Western counterparts, Bank of America views this as a commercial strategy rather than a reflection of hardware costs. The bank believes increased model competition will actually drive higher chip demand as enterprises deploy multiple AI systems.
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