• Thu. Apr 17th, 2025

Christina Antonelli

Connecting the World, Technology in Time

These 3 Are Great Artificial Intelligence (AI) Stocks to Buy on the Dip Right Now

These 3 Are Great Artificial Intelligence (AI) Stocks to Buy on the Dip Right Now

Artificial intelligence (AI) is rapidly shifting from hype to reality. It feels like yesterday that ChatGPT first went viral. That was in early 2023. Just over two years later, research by Statista estimates the AI market will reach $244 billion this year and exceed $1 trillion by 2031.

It’s an exciting time for technology investors, though the artificial intelligence opportunity will evolve as it matures, and AI stocks won’t go up in a straight line.

Look no further than recent weeks. Volatility has shaken the market, and while the major market indexes remain within shouting distance of all-time highs, several high-profile AI stocks, like Nvidia (NASDAQ: NVDA), Taiwan Semiconductor (NYSE: TSM), and ASML Holding (NASDAQ: ASML), have fallen 26% to 38% from their highs.

Here is why each stock should thrive over the next five years (and beyond) and are no-brainer buys right now.

Nvidia has been the biggest winner in AI’s early innings. The company’s GPU chips became the industry standard for training large language models, which can require many thousands of chips housed in data centers. Whether companies are developing smarter AI models or simply trying to keep them running as the world floods them with queries, it seems all roads have led to increased chip demand.

There is an ongoing development curve with AI chips, with a push for more computing power while using less energy. The initial AI investment cycle centered on Nvidia’s Hopper chip microarchitecture, and now its successor, Blackwell, could be even more successful. Nvidia has a product roadmap that could last years as the world races to build AI technology.

Despite Nvidia stock’s 26% decline, analysts continue to raise their revenue estimates for 2025 and 2026 as AI investments remain strong. Today, the stock trades at a PEG ratio of roughly 1.0 using its current price-to-earnings (P/E) ratio and estimated 35% long-term earnings growth rate. That’s a compelling value for an AI leader, and it gives investors a margin of safety if growth slows somewhat from its current trajectory.

Some investors may not realize that Nvidia doesn’t manufacture its chips. Instead, it depends on chip foundries, such as Taiwan Semiconductor, the world leader in this field. Counterpoint Research estimates Taiwan Semiconductor’s global foundry market share at approximately 67%, meaning it’s the biggest and best chip builder by a country mile.

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