2 Artificial Intelligence (AI) Stocks to Buy on the Dip
Last year, artificial intelligence (AI) stocks went gangbusters. But even the biggest and most dramatic growth stories in history experienced occasional corrections. Over the first two months of 2025, many AI stocks saw a strong pullback in valuation. If you've been waiting to jump in, this looks like your chance. The two companies below look like great long-term buys.When it comes to AI stocks, few can match the might and growth potential of Nvidia (NASDAQ: NVDA). There is simply no better stock to play the AI revolution that is currently unfolding. That's because nearly every AI company relies on specialized graphics processing units (GPUs) to train and run their models. GPUs are a critical component for any AI application, and Nvidia has a stranglehold on the market. According to most estimates, it has somewhere between a 70% and 95% market share for AI GPUs. Of course, competition will heat up over time, but Nvidia has some impressive competitive advantages. It has the scale and reputation, of course. But the key to Nvidia's success is locking in developers and vendors. In 2006, it launched CUDA, a developer platform that allowed companies and individuals to essentially create customized environments to get the most out of Nvidia's chips. This led to immense performance improvements, but also enmeshed customers deeply into Nvidia's hardware. In essence, this allows it to control both the hardware and software ends of its product. Continue reading
Last year, artificial intelligence (AI) stocks went gangbusters. But even the biggest and most dramatic growth stories in history experienced occasional corrections. Over the first two months of 2025, many AI stocks saw a strong pullback in valuation. If you've been waiting to jump in, this looks like your chance. The two companies below look like great long-term buys.
When it comes to AI stocks, few can match the might and growth potential of Nvidia (NASDAQ: NVDA). There is simply no better stock to play the AI revolution that is currently unfolding. That's because nearly every AI company relies on specialized graphics processing units (GPUs) to train and run their models. GPUs are a critical component for any AI application, and Nvidia has a stranglehold on the market. According to most estimates, it has somewhere between a 70% and 95% market share for AI GPUs.
Of course, competition will heat up over time, but Nvidia has some impressive competitive advantages. It has the scale and reputation, of course. But the key to Nvidia's success is locking in developers and vendors. In 2006, it launched CUDA, a developer platform that allowed companies and individuals to essentially create customized environments to get the most out of Nvidia's chips. This led to immense performance improvements, but also enmeshed customers deeply into Nvidia's hardware. In essence, this allows it to control both the hardware and software ends of its product.
