How Wall Street sees the AI trade

Group 1: Market Overview - The influence of the "Magnificent 7" on the market is diminishing, accounting for approximately 43% of S&P 500 gains, raising questions about the sustainability of AI spending [1] - Wall Street remains optimistic about the AI trade, with Jeffre maintaining that it is "still in fashion" [1] - Broadcom is highlighted as a top pick with a price target of $350, benefiting from custom chip adoption and existing contracts with hyperscaler customers like Google and Meta [1] Group 2: Company-Specific Insights - Nvidia is still favored by analysts despite recent sell-offs, with a price target of $250, as fears regarding its technology and valuation are viewed as overblown [1][2] - Micron is expected to report strong earnings, with a buy rating from Rosenblad, citing disciplined supply growth and increasing memory demand from AI applications [3] - Broadcom experienced an 11% drop post-earnings, attributed to concerns over potential loss of business from Google, which may consider using MediaTek for its next-generation tensor processing units [4][6]