After several weeks of heightened volatility driven by geopolitical tensions, oil price swings and shifting expectations around AI investment, many US stocks have come under heavy selling pressure. According to reports from Investing.com India, semiconductor stocks have borne the brunt of the selloff, with the sector suffering its weakest monthly performance in more than a decade as investors questioned whether record AI spending can be sustained. The weakness later spread to Big Tech, with Alphabet's higher capital expenditure guidance triggering a broad pullback in Amazon, Meta and Microsoft before quarterly earnings helped restore confidence.
The Federal Reserve left interest rates unchanged on Wednesday, maintaining a cautious stance as policymakers continued to monitor inflation risks and elevated oil prices. As reported by Investing.com India, this decision reflects the central bank's careful approach to managing current economic uncertainties. The Fed's measured response comes amid ongoing market volatility and shifting investor expectations about future monetary policy direction.
Using the Investing.com screener, researchers identified 8 US stocks that meet specific criteria: market capitalization greater than $2 billion, a drop of more than 15% over the past month, positive change over the past week, and upside potential of more than 25% based on both InvestingPro's Fair Value and analyst price targets. According to the analysis, these stocks show upside potential ranging from 25.2% to 54.9% based on Fair Value and from 31.8% to 178.7% based on the analyst consensus.
Nebius has emerged as one of the fastest-growing AI infrastructure companies, with revenue surging nearly 280% in its latest quarter, driven by an 841% year-over-year jump in AI cloud revenue. As reported by Investing.com India, the company also returned to positive adjusted EBITDA, highlighting improving operating leverage. Despite these strong results, the stock fell almost 22% over the past month as investors questioned the near-term profitability of AI cloud providers, before recovering 5.7% over the past week. InvestingPro's Fair Value estimate implies roughly 26% upside, while Wall Street analysts remain overwhelmingly bullish with even higher price targets ahead of the company's expected earnings release on August 12.
Alcoa delivered record quarterly revenue in mid-July, with sales rising 31% year over year as higher aluminium prices and restarted smelting capacity boosted results. However, according to Investing.com India, adjusted EPS of $2.12 missed consensus estimates of $2.31, and the stock has fallen more than 18% over the past month amid concerns over the debt burden associated with its planned acquisition of South32's aluminium assets. Shares have since begun to stabilise, gaining modestly over the past week. InvestingPro's Fair Value points to more than 25% upside, while the average analyst price target suggests gains of around 34%.
