David Katz Recommends Eight AI Stocks After Market Pullback

David Katz, the chief investment officer of Matrix Asset Advisers, identifies a major buying opportunity in AI-related stocks following a sentiment-driven pullback that pushed the Nasdaq 100 toward correction territory. Katz argues that the sell-off, which began in October, was driven by momentum and "less educated money" rather than a fundamental end to the AI and data center buildout.

He recommends eight stocks for a 12- to 18-month rebound. These are split between "picks-and-shovels" plays—Applied Materials, Generac, Qualcomm, and TE Connectivity—and hyperscalers, including Alphabet, Meta Platforms, Microsoft, and Amazon.

While Katz expresses some distrust in the spending discipline of Meta Platforms due to its previous Metaverse investments, he views the company's Muse AI agent as a "game changer."