The Nasdaq is in correction territory. Here are the 2 artificial intelligence (AI) stocks I'm buying first.
| Source: The Motley Fool on MSN | Original article
The Nasdaq’s slide into correction territory has not cooled the appetite for artificial‑intelligence assets, but it has forced the market to re‑price the infrastructure segment that underpins the boom. As we reported on April 10, 2026, the two AI‑related equities I earmarked for early‑stage buying were Nvidia (NVDA) and Microsoft (MSFT); today’s price adjustments make those picks even more compelling.
Nvidia’s dominance in GPU‑accelerated computing has turned it into the de‑facto hardware supplier for generative‑AI models, while Microsoft’s Azure platform now bundles OpenAI’s models into a suite of enterprise services. The correction has shaved roughly 12‑15 % off Nvidia’s forward‑price‑to‑sales multiple and trimmed Microsoft’s cloud‑segment premium to a level not seen since the 2022 rally, creating entry points that align with long‑term demand projections from IDC and Gartner.
The significance lies in the divergence between headline market sentiment and sector‑specific fundamentals. AI‑driven spend is still accelerating, with corporate budgets earmarking up to 30 % of IT allocations for AI workloads in 2026. By discounting infrastructure stocks, the correction may actually accelerate adoption, as lower‑cost compute and cloud capacity lower the barrier for midsize firms to experiment with large‑language models.
Investors should keep an eye on three near‑term catalysts. First, Nvidia’s upcoming Q3 earnings will reveal whether the H100 and the newly announced GH200 chips are delivering the expected revenue lift. Second, Microsoft’s fiscal‑Q3 results will show the impact of the Copilot‑for‑Office rollout and the expansion of Azure AI credits. Finally, macro‑economic signals—particularly the Fed’s stance on interest rates—will dictate whether the broader tech correction deepens or stabilises, setting the stage for a potential rebound that historically follows the first close in correction territory.
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