Doug Clinton warns of a 10% Nasdaq correction. Analysts still see long-term growth in AI infrastructure stocks like ASX and WDC. Alpha Score data on NVDA, AMD, AMAT.
On July 1, Doug Clinton of Intelligent Alpha warned on CNBC that tech may be due for a correction. He pointed to the dot-com era, which saw ten corrections of 10% over six years. The AI era draws comparisons, and after a strong run, you start to see wobbles and spiky volatility, he said. A 10% correction in the Nasdaq would take it to around 24,000, Clinton noted.
That kind of volatility does not change the long-term thesis for AI infrastructure. Analysts are raising price targets on semiconductor and storage companies, betting the buildout is durable. BofA lifted its target on ASE Technology Holding (ASX) to $48 from $36 on June 24, reaffirming a Buy. The firm said ASX is positioned to benefit from AI expansion across GPUs and ASICs via its VIPack solution.
ASE Technology reported fiscal Q1 2026 net revenues of NT$173,662 million, up 17.2% year-over-year. Net income was NT$14,148 million, up from NT$7,554 million a year earlier. Basic EPS reached NT$3.24 per ADS, compared to NT$1.75 in Q1 2025.
Western Digital (WDC) also got upgrades. Cantor Fitzgerald raised its target to $900 from $660 on June 29, calling the AI infrastructure buildout a generational semiconductor cycle extended by supply constraints. The firm sees industry revenue reaching $3 trillion by CY29. JPMorgan lifted its target to $650 from $530 on June 12, citing higher pricing and incremental margins.
Among the AI chip leaders, NVIDIA (NVDA) holds an Alpha Score of 65/100, rated Moderate. The stock sits at $194.83, down 1.39% today. Advanced Micro Devices (AMD) scores 49/100, labeled Mixed. Applied Materials (AMAT) scores 56/100, also Moderate. These scores reflect a blend of valuation, momentum, and fundamental factors.
The correction risk is real. The structural demand for AI compute and storage is not going away. For traders building a long-term watchlist, the analyst upgrades on ASX and WDC, combined with the Alpha Score data on the chip makers, offer a foundation. Earnings reports from ASX and WDC are due in the coming weeks.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.