HSBC declared the recent stock market pullback "overdone" in a Nov. 12 client report, recommending 11 stocks that offer buying value after sharp declines: Alphabet, Applied Materials, Baker Hughes, Bloom Energy, Citigroup, Freeport-McMoRan, GE Vernova, NextEra Energy, Oracle, Sempra, and Vertiv.
Strategist Nicole Inui noted that as the AI trading boom cools, tech and industrial stocks have fallen 8% to 9% over the past three months, with some fundamentally healthy sub-sectors pulling back nearly 20% from their highs. The list is heavily tilted toward companies benefiting from growing electricity demand and data center expansion, with HSBC specifically highlighting Bloom Energy's on-site power generation technology, GE Vernova's strong order backlog, and Vertiv's positioning in data center power and cooling equipment.
The bank also expressed bullishness on Alphabet's AI monetization potential, Applied Materials' exposure to advanced chips, Citigroup's earnings recovery prospects, and Freeport-McMoRan's copper and gold price exposure.
HSBC Calls Stock Market Pullback 'Overdone,' Recommends 11 Buy-Rated Stocks Tied to AI and Data Center Demand
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