1343 ET - The recent selloff of AI hardware stocks represents a reset in valuations as expectations pull ahead of fundamentals, and shouldn't be taken as a sign that demand for hardware is faltering, according to Stifel in a note. Samsung posting a 19-fold increase in its operating profit was seen by the market as "not good enough," the analysts say, but the fundamentals across the sector remain in place. "We believe that demand remains supply-gated, not demand-limited," they say. "The Samsung episode says in-line-to-slightly-above prints will be read as misses." According to the analysts, investors should consider stocks with already-compressed multiples such as Celestica, Jabil, TTM Technologies and Lumentum, or where revisions should outrun multiples, as in Ciena, Viavi and Nvidia.(elias.schisgall@wsj.com)

(END) Dow Jones Newswires

July 10, 2026 13:43 ET (17:43 GMT)

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