Analysts at Morgan Stanley are presenting the recent panic around AI on the stock market as a solid buying opportunity. Excessive selloffs across the sector have created a buy-the-dip opportunity for top AI stocks like AMD, Nvidia, and TSMC. The Morgan Stanley analysts suggest that investors should seek out what the team referred to as AI incumbents, strong growers, and high-quality names to take advantage of lower prices and momentum behind the adoption of the technology.

“Nearer-term AI adoption tailwinds help to offset longer-term disruption fears for impacted areas and for the overall market,” Morgan Stanley analyst Andrew Pauker says. While software has been among the sectors hardest hit by investor panic, the strategists said the market seemed to have assumed incumbents won’t be able to take advantage of AI innovation. Instead, they see AI expanding the addressable market for enterprise software, with the Morgan Stanley analysts seeing “attractive entry points” for the likes of Microsoft Corp., Intuit Inc., and Atlassian Corp.

AI stocks have seen mixed results since the start of 2026. However, Wall Street remains bullish on the industry, with high forecasts for several top chip and AI stocks. Nvidia (NVDA) continues to sit at the top position of the AI chip boom. However, AMD, Intel (INTC) and others are reaping gains from the boom as well. AMD, for example, agreed to a deal with Meta Platforms (META) that will see Meta purchase upward of 6 gigawatts’ worth of AI chips as part of its massive AI build-out.

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Though Microsoft, Amazon, and Alphabet are also trying to catch up, Nvidia remains undisputed in the 2026 AI stock boom. It is the leader in the segment, and even tech giants rely on its services. The company’s dominance comes from its near-monopoly in the high-performance GPU industry.