The rout in artificial intelligence (AI)-related stocks is ongoing.

Stocks of companies that provide major inputs into AI data centers have all fallen far from recent highs. That includes memory chip stocks such as Micron Technology and Intel, copper stocks such as Global X Copper Miners ETF, silver stocks such as iShares Silver Trust, and construction stocks such as Caterpillar.

In recent months, investors have been dumping those stocks and many others like them as they began to question the unprecedented AI spending by companies like Meta Platforms and Alphabet and the potential returns.

Shares of companies involved in AI infrastructure fell by an average of nearly 7% in July.

Image source: Getty Images.

Morgan Stanley (MS +0.72%) says to buy the dip.

In a July 28 note, analysts at the investment bank said they believe AI infrastructure will eventually become an "intelligence superhighway" that provides significant net benefits to economies worldwide. The analysts are bullish on that highway, despite the likelihood of speed bumps ahead, such as companies limiting their AI use due to cost concerns, and lower-priced competition from Chinese AI models.

Yet the analysts still like the rate of improvement in AI capabilities and the benefits of AI adoption, as well as the associated capital expenditures. As a result, given the pullback in associated AI stocks, their report said: "This point in time represents an unusually attractive buying opportunity."

In other words, buy the dip.