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3 No-Brainer Artificial Intelligence (AI) Stocks to Buy on a Dip

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The market has returned to its highs, along with many top artificial intelligence (AI) names. However, another market dip could always be around the corner.

Let’s look at three top AI stocks that have made strong runs that would be good buys on a pullback.

Image source: Getty Images.

1. Palantir

With a high valuation but attractive growth opportunities, Palantir Technologies (PLTR -0.34%) is a stock that would be attractive on a dip. The company has emerged as one of the market’s most compelling AI growth stories, and its momentum has been gaining speed.

In the first quarter, Palantir posted its seventh consecutive period of accelerating growth, with revenue up 39%. The rise is being led by its U.S. commercial segments, which saw sales jump 71% and the value of future deals soar 127%.

While there is a lot of talk about which company is building the best AI model, Palantir is focused on something far more practical: making AI useful. Its Artificial Intelligence Platform (AIP) uses AI models to help solve real-world problems.

AIP does this by gathering data and then connecting it to physical assets and operational workflows, allowing companies to make AI more useful. As a result, the platform is being used for a growing list of purposes, including hospitals monitoring for sepsis, insurers using it in their underwriting, and energy companies optimizing their pipeline infrastructure.

The company’s largest customer is the U.S. government, which is starting to embrace AI to become more efficient. Last quarter, Palantir’s government revenue climbed 45%.

The company also recently landed a major deal with NATO, expanding into international defense just as Europe ramps up military spending. That gives it three potential growth engines: domestic commercial enterprises, the U.S. government, and now the international public sector.

Yes, the stock is expensive by traditional metrics, but Palantir looks like it’s laying the groundwork to become one of the next megacaps. As such, any pullback could be a great buying opportunity.

2. Nvidia

Nvidia (NVDA -0.42%) has once again been helping lead the market higher. The company recently got good news when the Trump administration said the U.S. would ease chip export controls, allowing the company to resume selling its H20 chips to China. This will add billions in revenue.

Nvidia remains the undisputed champion of AI infrastructure, with its graphics processing units (GPUs) the backbone of this build-out due to their fast processing speeds. And the company has sped up its development cycle to ensure it remains on top.

Over the past two years, data center revenue has exploded from $4.3 billion to more than $39 billion — incredible growth for a company the size of Nvidia. It held a 92% share in the GPU market in the first quarter.

Its chips drive sales, but its secret weapon is its CUDA software. The company created the free platform in 2006 as a way to expand the use of GPUs beyond their original purpose of speeding up graphics in video games.

While it was slow to play out in other end markets, Nvidia smartly pushed CUDA into academia and research labs, where early AI research was being done. That led developers to build directly on CUDA, leading to a growing collection of tools and libraries designed to maximize GPU performance for AI workloads.

If shares of Nvidia dip, be ready to pounce. Data center spending continues to ramp up, and the company has a big opportunity in the automotive market, too, as autonomous and smart vehicles start to become more prevalent.

3. Microsoft

Another company that has seen its stock run up in price is Microsoft (MSFT -0.32%). It dominates the enterprise software space with its Microsoft 365 suite of worker productivity products and has one of the leading cloud computing companies in Azure.

The cloud remains the company’s fastest-growing business, with the unit producing revenue growth of 30% or more each of the past seven quarters. Azure revenue jumped 33% last quarter (35% in constant currency), with nearly half of that coming from AI services. Growth could have been even higher, but Microsoft has been hitting capacity constraints.

As such, it plans to ramp up capital expenditures (capex) in fiscal 2026 with a focus on adding GPUs and servers. It said those assets are more directly tied to AI revenue than buying the buildings that house them. That’s a smart move that should support continued cloud computing momentum.

Microsoft’s $10 billion investment in OpenAI gave it an early AI lead, especially with Azure initially being granted exclusive access to its leading large language models (LLMs). Companies continue to be attracted to OpenAI’s popular AI models, and Azure gives its customers direct access to them.

It has also embedded OpenAI’s models throughout its ecosystem to run its Copilot, which is gaining popularity with businesses. At $30 per enterprise user per month, it offers a lot of strong upside.

That said, the OpenAI partnership is getting complicated. The exclusivity deal is over, and the two sides are reportedly negotiating new terms as the AI provider looks to restructure. Still, Microsoft remains entitled to 49% of OpenAI Global’s profits up to a tenfold return on its investment — potentially a huge payday.

Microsoft remains in a strong long-term position. The stock’s recent run-up makes it an attractive candidate to buy on any pullback.



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The Key To Staying Relevant In The Age Of AI

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In today’s rapidly evolving technological landscape, artificial intelligence (AI) is transforming industries, reshaping the workforce, and redefining the rules of competition. What was once science fiction is now embedded in our everyday lives—from intelligent virtual assistants and automated customer service bots to advanced predictive analytics in healthcare and finance. As AI continues to expand its capabilities, individuals and organizations face an urgent question: How do we stay relevant in the age of AI?

The answer lies not in resisting the inevitable, but in adapting to it, embracing a mindset of lifelong learning, cultivating uniquely human skills, and strategically leveraging AI as a collaborator rather than a competitor.

1. Embrace Lifelong Learning

The most crucial shift in the AI era is a philosophical one: learning must never stop. In the past, a university degree could set the course for an entire career. Today, the half-life of skills—the time it takes for a skill to become half as valuable—continues to shrink, with estimates placing it at around five years or less in many tech-driven fields.

To stay relevant, individuals must continuously update their knowledge base. This doesn’t always mean going back to school. Online platforms like Coursera, edX, and LinkedIn Learning offer flexible, up-to-date courses in data science, digital marketing, cybersecurity, and AI fundamentals. Microlearning, bootcamps, and professional certifications can also offer rapid upskilling in key areas.

Staying relevant in the AI age means evolving as fast as the technology itself.

2. Cultivate Uniquely Human Skills

AI excels at tasks that are repetitive, data-driven, or logic-based. However, there are limits to what AI can replicate—especially when it comes to human empathy, ethics, creativity, and emotional intelligence.

Skills such as:

Critical thinking – evaluating information, making sound decisions, and solving novel problems.

Communication – articulating complex ideas clearly, listening actively, and collaborating across diverse teams.

Creativity – thinking divergently, innovating, and imagining new possibilities.

Empathy and leadership – understanding human emotions and guiding people effectively.

These are competencies that remain difficult for AI to emulate and therefore represent a core area where humans hold a lasting advantage.

Workers who can integrate both technical and soft skills—what some call “T-shaped professionals”—are particularly valuable. They have deep knowledge in one area (like AI programming or design thinking) and broad capabilities across disciplines, making them adaptable and cross-functional.

3. Learn to Collaborate With AI

Rather than fearing that AI will take jobs, the more productive outlook is to ask, “How can I use AI to enhance my work?”

Consider AI not as a rival, but as a tool for augmentation. For example:

A content creator can use AI to generate initial drafts or brainstorm headlines faster.

A data analyst can leverage machine learning models to uncover patterns that would take days to detect manually.

A marketer can personalize customer interactions using AI-powered recommendation engines.

Professionals who understand how to work with AI systems—inputting the right data, interpreting AI outputs, and making informed decisions—will become indispensable. This is particularly true in fields like healthcare, finance, law, and engineering, where AI can offer insights, but human oversight remains critical.

4. Stay Curious and Adaptable

In the age of AI, agility is the new security. Industries will change. Job descriptions will evolve. Roles will emerge that don’t even exist today. The ability to remain open, curious, and agile is far more valuable than expertise in a single tool or platform.

Cultivating a “growth mindset”—a belief that abilities and intelligence can be developed through effort and persistence—is crucial. People with growth mindsets are more likely to embrace change, learn from failures, and reinvent themselves in response to new challenges.

Being adaptable also means paying attention to trends and shifts in your industry. Subscribing to tech newsletters, attending webinars, joining professional communities, or simply staying informed can help you anticipate changes before they disrupt your work.

5. Ethical Awareness and Human-Centered Thinking

AI raises profound ethical questions—around bias, privacy, transparency, and accountability. As the technology becomes more powerful, ethical literacy becomes a vital skill. Understanding not just what AI can do, but what it should do, is critical.

Whether you’re a developer, policymaker, or user, approaching AI with a human-centered mindset—prioritizing fairness, inclusivity, and long-term impact—ensures that technological progress aligns with human values. Individuals who can bridge technical knowledge with ethical reasoning will play an essential role in shaping responsible AI systems.

Final Thoughts

Staying relevant in the age of AI is less about outpacing machines and more about deepening what makes us distinctively human. The future belongs to those who can learn continuously, think critically, act ethically, and collaborate seamlessly with intelligent systems.

Rather than fearing the rise of AI, we must see it as an opportunity—an invitation to reimagine how we work, learn, and contribute in a world where change is the only constant. As AI takes over more routine tasks, our job is to do what AI cannot: lead with heart, think with nuance, and innovate with purpose.

In the end, staying relevant is not about resisting the future—it’s about becoming ready for it.



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1 No-Brainer Artificial Intelligence Index Fund to Buy Right Now for Less Than $1,000

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Choosing winners in the fast-paced artificial intelligence (AI) race isn’t always easy. Small AI start-ups can flame out quickly, while large companies run the risk of failing to keep up. Many investors opt to put their money in exchange-traded funds (ETFs) that track indexes to spread their money across a variety of companies.

One of the most popular ETFs with a lot of exposure to AI stocks is the Invesco QQQ Trust (QQQ -0.14%). The fund is designed to track the performance of the Nasdaq-100 index, and investing in it is a great way to benefit from the AI race without having to handpick the winners. Here’s why.

Image source: Getty Images.

1. It has exposure to the top AI companies

The Invesco QQQ Trust‘s largest holdings are key players in the AI race and have already benefited — and will likely continue to benefit — as artificial intelligence grows. With this fund, you’ll be invested in Microsoft, Nvidia, Amazon, and Alphabet, as well as other tech companies making big moves in AI.

Consider that Nvidia is one of the leading AI processor companies, with an estimated 95% of the AI processor market, and that Amazon and Microsoft are the two largest cloud computing companies offering advanced AI services to their customers.

All of this means that owning some of Invesco QQQ Trust will allow you to tap into AI processors, AI cloud services, artificial intelligence software, and likely whatever new AI products and services debut over the coming years.

2. ETFs are a great investment for beginners and experts alike

Whether you’re just getting started in investing or you’ve been doing it for decades, ETFs are a great addition to any portfolio because they allow you to take some of the guesswork out of investing. Instead of poring over earnings calls and keeping tabs on how some macroeconomic news might affect the specific company you’re invested in, you can instead spread your money across many companies all at once.

Plus, with the Invesco QQQ Trust, your investment will track the combined movements of the top 100 non-financial companies on the Nasdaq, many of which are the world’s leading tech companies. As hundreds of billions of dollars are invested in AI in the coming years, this fund could continue to benefit from the strong artificial intelligence foundation that’s already been established.

3. Easy liquidity and relatively low costs

Being the fifth-largest ETF, you won’t have much of a problem buying or selling your shares of the Invesco QQQ Trust. A substantial amount of daily trading volumes and about $354 billion in assets under management mean that you’ll easily find a buyer when you’re ready to sell.

What’s more, the fund has a relatively low expense ratio of just 0.20%. If you have $1,000 in the fund, your annual expense ratio is just $2 in fees. Since it’s passively managed, the Invesco QQQ Trust charges far less than actively managed funds, which select stocks in an attempt to outperform specific indexes. Lower expense ratios help you keep more of the gains earned by the fund.

4. The Invesco QQQ Trust has been a top performer

No matter where you invest your money, there’s always a risk that your investments won’t perform well. And even if they do make significant gains when you own them, there’s no guarantee they’ll continue to do so.

But there’s something to be said for funds that historically perform well over time. Since its launch in 1999, the Invesco QQQ Trust has gained nearly 1,000% while the S&P 500 is up about 400%. Of course, that doesn’t mean it will continue growing at the same pace or even that the fund will outpace the broader market’s returns in the coming years. Still, it’s an indication the fund has, in the past, successfully benefited from large tech trends.

If you have $1,000 to spend right now and want to tap into artificial intelligence, this fund is a smart move. While there may be others with more focused exposure to AI, the Invesco QQQ Trust allows you to benefit from the largest technology companies on the Nasdaq, which could provide stability and long-term opportunity.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.



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Got $3,000? 2 Artificial Intelligence (AI) Stocks to Buy and Hold for the Long Term

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Key Points

  • The chip industry is booming thanks to AI.

  • Advanced Micro Devices is seeing margins and earnings soar as its data center business expands.

  • Broadcom is meeting insatiable demand for custom AI chips and networking solutions for advanced AI workloads.

Artificial intelligence (AI) is impacting every sector of the economy, so there are several ways investors can profit from this opportunity. But recent earnings results show that top semiconductor companies are still well positioned to deliver outstanding returns for long-term investors.

The AI chip market is expected to grow at an annualized rate of 24% through 2029 to reach $311 billion, according to MarketsandMarkets. If you have $3,000 you’re looking to invest right now, here are two chip stocks to consider buying and holding for the long term.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Image source: Getty Images.

1. Advanced Micro Devices

Advanced Micro Devices(NASDAQ: AMD) has become a widely used brand of chips in the consumer PC market. Its Ryzen processors have taken significant market share from Intel. But it’s also one of only two suppliers, along with Nvidia, of general-purpose graphics processing units (GPUs) that are used for AI workloads.

While Nvidia has a commanding lead in GPUs, it’s not going to control 100% of the market. This leaves a substantial opportunity for the runner-up in this market to do well. AMD’s data center business is booming, with segment revenue up 57% year over year in the first quarter.

AMD is meeting demand for cost-effective alternatives in the chip market. Oracle is experiencing tremendous growth in its cloud infrastructure business right now, and it’s a key partner for AMD. Oracle’s cloud infrastructure will offer up to 131,072 AMD Instinct MI355X GPUs for AI. AMD has already announced the MI400 series for launch next year, which will enable even better performance for AI training and inferencing.

As data center sales make up a larger mix of AMD’s total revenue, it is pushing margins up. Higher margins drove a 55% year-over-year increase in adjusted earnings last quarter. Given the long-term opportunity in the AI chip market, which AMD estimates at $500 billion, investors are undervaluing AMD’s future earnings.

The stock is trading at a forward price-to-earnings (P/E) multiple of 38 on 2025 earnings estimates. But this multiple drops to 25 on 2026 estimates. As AMD continues to expand margins from growth in its data center business, the stock could offer significant upside over the next few years and beyond.

2. Broadcom

Beyond the surging demand for general-purpose chips that AMD supplies, there is growing demand for chips designed for specialized tasks. Broadcom(NASDAQ: AVGO) is one of the best stocks to profit from the demand for custom chip solutions.

Broadcom has been a top-performing semiconductor company for years, supplying components for many markets, including Apple‘s iPhone. But demand for its application-specific integrated circuits (ASICs) for AI is off the charts.

The company’s AI chip revenue grew 46% year over year in the most recent quarter. As demand for custom ASICs grows, it also fuels demand for networking products that can handle faster data transfer, which is needed for next-level AI performance.

Broadcom’s new Tomahawk 6 Ethernet switch has enough data capacity to support 100,000 AI chips working together to train the next-generation AI models. The company’s networking business posted revenue growth of 170% year over year last quarter, representing 40% of its AI-related revenue.

However, management sees the demand for its custom AI chips outpacing sales of its networking products over time. It’s a huge opportunity, as evidenced by Broadcom’s momentum. Management expects its AI growth to remain steady through fiscal 2026, which could support new highs for the stock.

Broadcom earns very high margins, so the favorable demand outlook points to robust earnings over the next year. The stock trades at 41 times this year’s consensus earnings estimate, but that multiple drops to 33 on next year’s estimate. These are not cheap valuation multiples, but the investment in AI technology is pointing to substantial growth in the coming years for leading chipmakers, and that should support excellent returns for investors.

Should you invest $1,000 in Advanced Micro Devices right now?

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Ballard has positions in Advanced Micro Devices and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Apple, Intel, Microsoft, Nvidia, and Oracle. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.



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