The DeepSeek sell-off sent tech stocks tumbling across the board, but Bank of America sees opportunity in these non-AI hardware stocks.

Individual investors responded to the market selloff earlier this week triggered by concerns regarding a Chinese artificial intelligence startup by buying a wide array of technology stocks, according to data released by Vanda Research on Wednesday.

Monday’s 3% slide in the Nasdaq 100 Index came as a rude shock to tech bulls. For equity investors who’ve been made uncomfortable by tech’s wild outperformance over the past two years, though, there were some encouraging signs.

Entrepreneur Marc Andreessen, known for co-writing Mosaic, one of the world’s first web browsers, wrote Sunday on X that “DeepSeek R1 is AI’s Sputnik moment,” likening it to the space race between the U.S. and the Soviet Union and the event that forced the U.S. to realize that its technological abilities were not unassailable.

Technology stocks regained ground on Tuesday, a day after a low-cost Chinese AI model rattled markets, while traders rotated back into the dollar from safe-haven currencies.

Technology stocks fell sharply in Asia after the emergence of Chinese artificial-intelligence startup DeepSeek triggered a selloff in AI-related stocks overnight and cast uncertainty over the rising demand for data centers.

The tech-heavy Nasdaq composite closed down nearly 3% on Monday, with shares of AI-focused chipmaker Nvidia plunging 17% and shaving nearly $590 billion from the company’s market cap.