Bank of America thinks the sell-off in AI infrastructure stocks has gone far enough to be worth buying again.

In a note published Wednesday, the bank's research team screened its trading desk's AI ecosystem baskets and pulled out 16 Buy-rated stocks that have fallen sharply from their highs while analysts were still raising earnings estimates on them.

How The Screen Was Built

BofA started with the constituents of its trading desk's 15-plus AI ecosystem baskets, removed anything not rated Buy, then kept only stocks with positive three-month earnings revisions that were trading more than 20% below their 52-week high.

Forty-six names cleared that bar.

Analysts then narrowed the list to 16 based on what they saw as the best risk-reward for a medium-term holding period.

Micron Has The Widest Gap To Target

Measured against BofA's price objectives, the largest implied upside belongs to Micron Technology Inc. (MU): $1,550 against a stock that closed Thursday at $949.83, or roughly 63%.

Analyst Vivek Arya wrote that investors have been positioning ahead of an eventual memory downturn, but called the reset "an enhanced buying opportunity" on the view that the stock already discounts a severe cyclical outcome while assigning almost no value to the HBM and AI business.

Arya expects server DRAM pricing to rise 13-18% quarter-over-quarter in the third quarter, with supply staying tight because new capacity only starts arriving around mid-2027.

His long-term estimate is roughly $150 in per-share earnings for 2028.

The Rest Of The List

Behind Micron, the widest gaps to target sit with Oracle Corp. (ORCL) at 54%, Flex Ltd. (FLEX) at 45%, Celestica Inc. (CLS) at 44%, Aktis Oncology Inc. (AKTS) at 43% and Robinhood Markets Inc. (HOOD) at 41%.

Meta Platforms Inc. (META) and Cameco Corp. (CCJ) both sit at 36%, followed by Vistra Corp. (VST) at 34%, CoreWeave Inc. (CRWV) at 32% and Vertiv Holdings Co (VRT) at 31%.

The tighter end of the list holds Seagate Technology Holdings PLC (STX) at 25%, Albemarle Corp. (ALB) at 19%, Talen Energy Corp. (TLN) at 18% and Lam Research Corp. (LRCX) at 14%.

Atlassian Corp. (TEAM) closes it out at 5%, the only name already trading near BofA's objective.

BofA's 16 AI Selloff Picks — Targets, Upside And What Has To Go Right

Prices as of Aug. 13 close. Source: BofA Global Research.