Baird Considers Nvidia, AMD As Less Expensive And Value Stocks Amid DeepSeek Selloff: Retail Stays Bullish

The analysts noted that while DeepSeek’s launch last week “catalyzes concerns” around the increasing power requirements and complexities of artificial intelligence (AI) systems, the broader demand in the industry is still strong.
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Artificial Intelligence Machine Learning Natural Language Processing Data Technology. (Representative image courtesy of Just_Super via Getty Images)
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Rounak Jain·Stocktwits
Updated Jul 02, 2025 | 8:31 PM GMT-04
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Shares of AI bellwether Nvidia Corp. (NVDA) and rival Advanced Micro Devices Inc. (AMD) were in focus after a rout across ‘Magnificent 7’ and other big technology stocks. However, analysts at Baird said that despite the DeepSeek-fueled selloff on Monday, Nvidia and AMD shares are worth buying.

According to TheFly, Baird noted that while DeepSeek’s launch last week “catalyzes concerns” around the increasing power requirements and complexities of artificial intelligence (AI) systems, the broader demand in the industry is still strong.

The firm underscored its bullish outlook for Nvidia and AMD stocks, apart from other semiconductor players, by noting that the demand for graphics processing units (GPU) since the late 1990s has been driven by hardware, not software.

Essentially, Baird analysts remain “skeptical” about performance workarounds – one of the highlights of DeepSeek’s launch is that it is rumored to have been trained using less powerful Nvidia H800 chips instead of the most recent Blackwell chips from the company.

They noted that “strong numbers for the rest of the year” cannot be ignored and said that Nvidia remains a less expensive stock compared to Broadcom Inc. (AVGO) despite its bull run over the past year – Nvidia stock’s trailing 12-month price-to-earnings (PE) ratio stands at 46.62, while Broadcom’s stands at 155.48.

Likewise, the firm believes AMD offers the most value based on current levels.

NVDA retail sentiment.jpg
NVDA sentiment and message volume January 28, 2025, as of 9:30 am ET | Source: Stocktwits

Retail sentiment on Stocktwits around Nvidia stock was ‘extremely bullish’ (76/100), while sentiment around AMD was hovering in the ‘neutral’ (45/100) territory.

AMD retail sentiment.jpg
AMD sentiment and message volume January 28, 2025, as of 9:30 am ET | Source: Stocktwits

Nvidia’s stock price has surged nearly 90% over the past year, while AMD’s shares have lost over 35% of their value in the same period.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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