5 big analyst AI moves: Is the historic AI stock rout a buy opportunity?

Investing.com reports the five most significant analyst moves in the artificial intelligence (AI) sector this week. Yardeni Research suggests that investors should consider the recent selloff as a buying opportunity. The firm argues that opposition to data centers poses a speed bump rather than a roadblock to the AI boom. Since September 15, Yardeni has advised taking a cautious approach to the stock market ahead of midterm elections.

Stocks rallied on Wednesday due to short covering, but then plummeted, with the S&P 500 descending 4.4%, its worst day since April 2025, and the Nasdaq falling 5.5% into correction territory.

Yardeni attributes the decline to growing concerns about data centers, citing an NBC exit poll where 76% of voters opposed new facilities in their communities. Additionally, Texas, which is home to nearly 30% of planned U.S. data center expansions in 2028, voted Gina Hinojosa to be governor following her promise to halt new approvals. Yardeni believes the backlash, coupled with financial and physical constraints, are merely speed bumps and that the selling has been exaggerated.

TD Cowen and Bank of America have downgraded Marvell Technology due to concerns about the company's all-stock acquisition of Lumentum. TD Cowen reduced Marvell to a Hold rating and slashed its price target to $175 from $350, while Bank of America downgraded Marvell to Neutral and lowered its target price to $225 from $400. Analyst Vivek Arya from Bank of America highlighted potential issues from the deal, including a stock overhang and a significant drop in the SOX index.

Despite these concerns, Citi maintains that data centers will still be built, but construction locations, designs, and timelines may change following the Democratic gains in the midterms.