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Wall Street lost roughly $2.5 trillion in Nasdaq market value on Thursday as investors dumped AI stocks, triggering a selloff driven by fears of tighter regulation and slowing data-center construction. Despite the sharp decline, six major US companies—NVIDIA, Vistra, Amazon, Alphabet, Uber, and Netflix—are now viewed as potentially attractive for long-term investors based on their earnings, valuations, and Wall Street forecasts.
AI Selloff Drives Nasdaq Decline
The Nasdaq recorded its fourth consecutive weekly decline, although Friday brought a modest recovery. Keith Lerner, chief investment officer at Truist Advisory Services, told Reuters that “We still think AI is the dominant theme in this bull market.” The broader market remains technically weak, but analysts maintain bullish consensus ratings for the six stocks identified in the analysis.
NVIDIA (NVDA) plunged 9.3% on Thursday, yet its business continues to expand rapidly. Quarterly revenue doubled to $96.2 billion, and analysts see roughly 75% upside for the chipmaker. NVIDIA is trading at 15.4 times forward earnings, a level that appears increasingly affordable relative to its growth. However, shares remain below their 200-day moving average, and earnings scheduled for November 17 could determine the next direction for the stock.
Energy and Tech Giants Show Resilience
Vistra (VST) gained 10.5% on Friday after reporting a 50% increase in quarterly adjusted EBITDA. The energy producer’s expanding electricity business benefits from data-center demand, and analysts project 63% upside. Possible restrictions on AI infrastructure remain a risk for the company.
Amazon (AMZN) saw its cloud business grow 39.3% last quarter, while its operating margin reached a record 13.9%. The company’s diversified operations offer some protection from AI-sector volatility. However, heavy infrastructure investment pushed annual free cash flow negative, a factor investors are monitoring closely.
Alphabet (GOOGL), the parent of Google, reported 25% revenue growth, with cloud sales more than doubling. Its forward earnings multiple of 20.7 looks attractive relative to that growth rate. The primary concern for Alphabet is negative quarterly free cash flow, driven by aggressive capital spending.
Alternative Plays in a Volatile Market
Uber (UBER) offers an alternative to AI-heavy investments, with quarterly bookings growing 20% and free cash flow reaching $2.5 billion. Analysts see nearly 47% upside for the ride-hailing giant, although weaker earnings guidance remains a concern for investors.
Netflix (NFLX) trades near its yearly lows despite 12% quarterly revenue growth and an improving profitability profile. Its 17.7 forward earnings multiple looks relatively inexpensive. However, slower advertising growth makes its recovery less certain compared to other tech peers.
All six stocks retain bullish Wall Street consensus ratings. The next test for these companies is whether earnings growth can support their current valuations as the AI selloff continues to unfold.
Frequently Asked Questions
Which stocks were identified as potentially attractive after the Nasdaq crash?
NVIDIA, Vistra, Amazon, Alphabet, Uber, and Netflix were identified as potentially attractive for long-term investors following the $2.5 trillion drop in Nasdaq market value.
What triggered the $2.5 trillion loss in Nasdaq market value?
The selloff was triggered by fears of tighter AI regulation and slowing data-center construction, leading investors to dump AI stocks on Thursday.
