80% of S&P 500 Stocks Are in Correction Territory. These 3 Are Still Buys

More than 80% of S&P 500 stocks are down at least 10% from their highs. Bright Lake Wealth Management founder and president Ted Thatcher discusses why he is bullish on Nvidia, Microsoft and Alphabet, whether CoreWeave is a buying opportunity after the AI selloff, and where investors should put their money; the excerpt provides no specific recommendations beyond those topics.

Analysis

The breadth damage is a regime warning, not evidence by itself that equities are cheap: drawdowns from prior highs say little about forward earnings or valuation. The key near-term test is whether breadth stabilizes while earnings expectations hold. If estimates start falling, the same weak internals can turn a technical correction into a fundamentals-led de-rating.

The interview’s bullish stance is not a differentiated catalyst without valuation, estimate, or positioning data. For NVDA, MSFT, and Alphabet, AI demand may support results, but crowded expectations leave them exposed if customer spending converts to slower revenue or lower returns. A relative quality bias toward MSFT and Alphabet over CoreWeave is defensible as a conditional risk-control view, not a claim that either is undervalued: a funding or utilization shock would likely affect an infrastructure-heavy AI provider more acutely than diversified platforms. Verify CoreWeave’s debt maturities, customer concentration, committed capacity, and cash conversion before taking a view.

Horizon: days to weeks, monitor breadth and credit conditions; over 1–3 months, earnings revisions and hyperscaler capex commentary should determine whether the selloff is a buying opportunity. Over 6–18 months, AI monetization—not capex announcements alone—will separate durable beneficiaries from capacity exposed to utilization and financing risk. Falsifiers for a stabilization thesis include broad downward estimate revisions, worsening credit spreads, or renewed deterioration in market breadth.

Key Decisions for Investors

• Do not buy the broad dip solely on the percentage of stocks off their highs. Wait for breadth to stop deteriorating and earnings revisions to stabilize; if both do, scale into broad exposure rather than making a one-day all-in entry.
• For an AI exposure, favor a staged MSFT/GOOGL position over an equivalent high-beta CRWV allocation until CoreWeave’s financing, customer concentration, and utilization data are verified. Reassess if those metrics are resilient and platform capex commentary weakens.
• Treat NVDA as an earnings-and-expectations trade, not a technical bargain: add only if results and forward demand commentary sustain estimates; trim or avoid if guidance misses or customer spending plans are cut.
• No standalone CRWV trade is supported by this interview summary. Alert on credit spreads, refinancing terms, capacity utilization, and customer concentration; worsening evidence would favor avoiding or hedging exposure.