By Kara Greenberg

A pullback in the AI trade has created opportunities for bargain-hunting investors, according to analysts at Bank of America. 

The analysts in a recent note named 16 companies that—despite upward earnings revisions—have recently suffered more than 20% drawdowns from their 52-week highs, offering what they called “attractive medium-term upside.” Though AI spending by America’s biggest tech giants is seen peaking this year, according to the analysts, growth rates for the companies in their list “are expected to remain strong” into 2027.

There have already been some signs of sentiment starting to shift back toward the AI trade. Chip stocks flirted with the start of a new bull market Thursday before sliding amid a broader pullback Friday. Memory chip leader Micron Technology (MU) and chip equipment maker Lam Research (LRCX) were some of Bank of America’s picks, as well as hard drive maker Seagate (STX). Though they’ve pulled back from their highs recently, all three remain among the S&P 500’s top performers this year.

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Meta (META) made the list too, with BofA saying it believes the Street underappreciates the company’s “ability to monetize its growing capacity assets” and its growing ad revenues. The social media giant is reportedly in talks to lease extra compute to Anthropic. Its shares are down roughly 10% year-to-date and have lost about a quarter of their value from their highs last August.

Data center operator CoreWeave (CRWV), database giant Oracle (ORCL), and data center supply chain solutions company Celestica (CLS) were also listed, as were cooling and power management firm Vertiv (VRT), electricity provider Talen Energy (TLN) and nuclear power company Vistra (VST). Albemarle (ALB), the world’s largest lithium producer, a key metal in the production of batteries used in data centers, was highlighted along with uranium provider Cameco (CCJ).  

Electronics manufacturer Flex (FLEX), enterprise software company Atlassian (TEAM), brokerage platform Robinhood (HOOD), and Eli Lilly-backed (LLY) Aktis Oncology (AKTS) rounded out the list.  

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This article has been updated since it was first published to include Vertiv.

This article was first featured on Investopedia