The Nasdaq Is in Correction Territory. Here Are the 2 Artificial Intelligence (AI) Stocks I'm Buying First.
| Source: AOL | Original article
The Nasdaq Composite slipped below the 10 percent‑off‑high threshold on Friday, officially entering correction territory for the first time this year. The drop was sparked by a weaker‑than‑expected jobs report and a renewed focus on inflation, but the sell‑off has not erased the market’s appetite for artificial‑intelligence products.
Analyst Adam Spatacco argues that the correction is “discounting the infrastructure movement entirely” while leaving demand for AI services intact. In his April 9 column he points to two pure‑play AI stocks that have underperformed the index by a wider margin and now appear undervalued: C3.ai (AI) and Palantir Technologies (PLTR). Both companies have seen shares tumble more than 20 percent since the Nasdaq peaked in March, creating what Spatacco describes as “98 % and 115 % upside” according to recent Wall Street target revisions.
The significance lies in the divergence between macro‑level weakness and sector‑specific growth. C3.ai’s platform‑as‑a‑service model is gaining traction with enterprise customers seeking to embed generative‑AI capabilities without building their own data pipelines, a trend highlighted in our April 10 piece on retrieval‑augmented generation failures. Palantir’s data‑integration suite, now bolstered by a new partnership with a major cloud provider, positions it to capture a slice of the $1.5 trillion AI‑software market that analysts expect to expand at double‑digit rates through 2028.
Investors should monitor the companies’ upcoming quarterly reports for signs that revenue pipelines are materialising, as well as any policy shifts after OpenAI CEO Sam Altman’s recent blueprint for AI taxation and regulation. A rebound in tech hiring or a softer Fed stance could also lift the broader Nasdaq, accelerating the price correction of these stocks. For now, the two picks represent a contrarian play on AI demand amid a market‑wide pullback.
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