Brand Stories

5 No-Brainer Artificial Intelligence (AI) Stocks to Buy on the Dip

Published

6 days ago

July 12, 2025

The stocks on this list have performed well since the AI boom started in 2023.
Their underlying businesses are poised to grow for years to come.
Investors should view share price declines as opportunities to buy and hold for the next five years or longer.
10 stocks we like better than Palantir Technologies ›

It’s probably safe to say that artificial intelligence (AI) is here to stay. Investments in AI infrastructure continue to soar, and companies are racing to develop and implement AI in nearly every facet of their business models.

Researchers believe that over time, artificial intelligence will impact many of the world’s jobs and create trillions of dollars in economic growth. Some of the top AI stocks have already generated impressive returns for investors since the AI market rally began in 2023.

However, given the long-term growth likely ahead, it would be wise to view price declines as opportunities to buy into companies leading the AI wave. Here are five no-brainer AI winners that investors should buy on the dip and hold for the next five years and beyond.

Image source: Getty Images.

AI is ultimately software, and Palantir Technologies (NASDAQ: PLTR) is among the best at helping its government and corporate customers wield AI’s potential. Palantir develops custom AI software on its proprietary platforms, which can perform a range of tasks, from identifying fraud to optimizing supply chains to supporting military missions. Palantir’s revenue growth has continued to accelerate since last summer, following the launch of its Artificial Intelligence Platform (AIP).

Almost any company large enough to invest in AI software is a potential Palantir client. There are over 20,000 large companies in the United States alone, and Palantir still has just 622 commercial customers. The stock’s valuation is extremely rich at the moment, making it an obvious candidate to revisit when the price drops.

On the hardware side of AI are semiconductors (chips), also known as the building blocks of technology. Arm Holdings (NASDAQ: ARM) designs proprietary processing chip architectures and generates revenue from licensing fees and royalties. Arm’s customers include the leading AI chip companies, such as Nvidia. To date, customers have shipped over 310 billion Arm-based chips, and Arm continues to increase its market share.

Arm is highly profitable, as it has almost zero expenses outside of research and development. Global chip demand is increasing over time as AI, cloud computing, autonomous vehicles, and other emerging technologies require more processing power. Analysts estimate that Arm will grow earnings by an average of 22% annually over the long term, an impressive pace. However, its steep forward price-to-earnings (P/E) ratio of 85 means investors should probably wait to buy for now.

Electronics giant Apple (NASDAQ: AAPL) has a massive AI opportunity in front of it. The company’s iOS ecosystem boasts over 2.3 billion active users across smartphones, computers, and wearable devices. Unfortunately, Apple has gotten off to a slow start with AI, reportedly going back to the drawing board to fix its Siri voice assistant product. Despite the struggles, Apple likely has time to figure things out thanks to its famously sticky ecosystem.

In the meantime, Apple is still poised to enjoy double-digit annualized earnings growth, partly due to its massive stock buyback programs, which steadily reduce the share count and increase earnings per share. There’s a reason it’s one of Warren Buffett’s favorite stocks. Apple stock still has long-term upside, but it would be best to buy once its valuation falls from its current P/E ratio of 30 times 2025 earnings estimates.

Social media juggernaut Meta Platforms (NASDAQ: META) is leveraging AI in many ways. It developed and open-sourced its Llama AI model, accumulating over 1.2 billion downloads. It is also building a consumer ecosystem with Meta-branded headsets and smart glasses, an effort to break free from the control that smartphone makers have had over its apps.

AI is also helping to enhance Meta’s core business, which is advertising to the 3.4 billion people using its apps each day. Meta has integrated AI into its ads business to increase monetization. Eventually, AI could automate ads, likely boosting profit margins for a company that was exceptionally lucrative to begin with. The stock’s P/E ratio (28) has drifted higher since 2023, but anticipated mid-teens annualized earnings growth makes Meta a table-pounding buy on pullbacks.

Semiconductor giant Broadcom (NASDAQ: AVGO) is experiencing increased growth due to surging demand for its AI networking chips, as well as its custom accelerator chips (XPUs). The company’s AI-related semiconductor revenue grew by 46% year over year in the second quarter of 2025 and could add billions of dollars in incremental revenue over the coming years. Investors may also like that Broadcom isn’t a pure AI investment. Infrastructure software for enterprises has become a significant portion of Broadcom’s business, accounting for approximately 40% of its revenue.

Additionally, the stock offers a rising dividend that management has increased for 15 consecutive years. Analysts anticipate 25% annualized earnings growth over the next three to five years, making Broadcom a solid buy at 41 times 2025 earnings estimates and a no-brainer if the stock drops further.

Before you buy stock in Palantir Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $674,432!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,005,854!*

Now, it’s worth noting Stock Advisor’s total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of July 7, 2025

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Meta Platforms, Nvidia, and Palantir Technologies. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.

5 No-Brainer Artificial Intelligence (AI) Stocks to Buy on the Dip was originally published by The Motley Fool

Source link

Up Next

The Smart Way to Stay: How CheQin.AI Is Making Hotels Compete for YOU – Can You Afford Not to Bargain?

Don't Miss

Prediction: 2 Artificial Intelligence (AI) Stocks That Could Be Worth More Than Apple by 2030

Justin Pope, The Motley Fool

Click to comment

You must be logged in to post a comment Login

Brand Stories

Americans May Have To Pay Much More For Electricity. Reason: Artificial Intelligence

Published

2 hours ago

July 18, 2025

Admin 5

Artificial intelligence is reshaping the future — but not without a cost. A new report by the White House Council of Economic Advisors warns that AI and cloud computing may drive up electricity prices dramatically across the United States unless urgent investments are made in power infrastructure.

The study highlights a significant shift: after decades of minimal electricity demand growth, 2024 alone saw a 2% rise, largely attributed to the surge in AI-powered data centers. The International Energy Agency (IEA) projects that by 2030, data centers in the US could consume more electricity than the combined output of heavy industries such as aluminum, steel, cement, and chemicals.

Productivity Promises VS Power Pressures

Despite the looming challenges, the report does not discount AI’s potential benefits. If half of all US businesses adopt AI by 2034, labor productivity could rise by 1.5 percentage points annually, potentially boosting GDP growth by 0.4% that year. But that promise comes with a price.

To meet the surge in demand, especially when factoring in industrial electrification and efforts to reshore manufacturing, the US would need to invest an estimated 1.4 trillion Dollars between 2025 and 2030 in new electricity generation. That figure surpasses the industry’s investment over the past decade. The study cautions that without the emergence of lower-cost power providers — such as renewables or advanced nuclear — electricity bills will rise sharply.

Source link

Brand Stories

Delaware Firm to Evolve Defense Tech Org With Self-Growing AI

Published

3 hours ago

July 18, 2025

Rojoef Manuel

Star26 Capital Inc. is collaborating with Delaware-based Synthetic Darwin to supercharge its defense tech developments through self-growing AI.

This partnership will utilize Darwinslab, an AI ecosystem where digital agents generate, assess, and cultivate other algorithms inspired by biological evolution.

The solution slashes the time needed to build or sustain complex AI systems, shrinking development cycles to days and enabling rapid adaptation to new data and mission needs.

Read the full story on our new publication, Military AI: Delaware Firm to Evolve New York Defense Tech Org Through Self-Growing AI

Source link

Brand Stories

AI isn’t just for coders: 7 emerging non-tech career paths in artificial intelligence

Published

4 hours ago

July 18, 2025

Admin 5

7 emerging non-tech career paths in artificial intelligence

Artificial intelligence is no longer the future. It’s already shaping how we live, work, and learn. From smart assistants to personalised learning apps and automated hiring tools, AI is now part of everyday life. But here’s something many students still don’t realise — you don’t have to be a computer science genius to build a meaningful career in AI.In 2025, AI needs more than just coders. It needs people who understand ethics, design, communication, psychology, policy, and human behaviour. Whether you’re studying law, liberal arts, design, economics, or media, there is space for you in this fast-growing field. These emerging roles are all about making AI more responsible, more human, and more useful.Here are seven exciting non-tech career paths in artificial intelligence that you can start exploring now.

AI ethics specialist

AI systems make decisions that can affect real lives — from who gets hired to who receives a loan. That’s why companies and governments need experts who can guide them on what’s fair, what’s biased, and what crosses a line. Ethics specialists work closely with developers, legal teams, and product leaders to make sure AI is built and used responsibly.Best suited for: Students from philosophy, sociology, law, or political science backgroundsWhere to work: Tech companies, research institutes, policy think tanks, or digital rights NGOs

AI UX and UI designer

AI tools need to be easy to use, intuitive, and accessible. That’s where design comes in. AI UX and UI designers focus on creating smooth, human-centered experiences, whether it’s a chatbot, a virtual assistant, or a smart home interface. They use design thinking to make sure AI works well for real users.Best suited for: Students of psychology, graphic design, human-computer interaction, or visual communicationWhere to work: Tech startups, health-tech and ed-tech platforms, voice and interface design labs

AI policy analyst

AI raises big questions about privacy, rights, and regulation. Governments and organisations are racing to create smart policies that balance innovation with safety. AI policy analysts study laws, write guidelines, and advise decision-makers on how to manage the impact of AI in sectors like education, defense, healthcare, and finance.Best suited for: Public policy, law, international relations, or development studies studentsWhere to work: Government agencies, global institutions, research bodies, and policy units within companies

AI behavioural researcher

AI tools influence human behaviour — from how long we scroll to what we buy. Behavioural researchers look at how people respond to AI and what changes when technology gets smarter. Their insights help companies design better products and understand the social effects of automation and machine learning.Best suited for: Students of psychology, behavioural economics, sociology, or educationWhere to work: Tech companies, research labs, social impact startups, or mental health platforms

AI content strategist and explainer

AI is complex, and most people don’t fully understand it. That’s why companies need writers, educators, and content creators who can break it down. Whether it’s writing onboarding guides for AI apps or creating videos that explain how algorithms work, content strategists make AI easier to understand for everyday users.Best suited for: Students of journalism, English, media studies, marketing, or communicationWhere to work: Ed-tech and SaaS companies, AI product teams, digital agencies, or NGOs

AI program manager

This role is perfect for big-picture thinkers who love connecting people, processes, and purpose. Responsible AI program managers help companies build AI that meets ethical, legal, and user standards. They coordinate between tech, legal, and design teams and ensure that AI development stays aligned with values and global standards.Best suited for: Business, liberal arts, management, or public administration studentsWhere to work: Large tech firms, AI consultancies, corporate ethics teams, or international development agencies

AI research associate (non-technical)

Not all AI research is about coding. Many labs focus on the social, psychological, or economic impact of AI. As a research associate, you could be studying how AI affects jobs, education, privacy, or cultural behaviour. Your work might feed into policy, academic papers, or product design.Best suited for: Students from linguistics, anthropology, education, economics, or communication studiesWhere to work: Universities, research labs, global think tanks, or ethics institutesThe world of AI is expanding rapidly, and it’s no longer just about math, code, and machines. It’s also about people, systems, ethics, and storytelling. If you’re a student with curiosity, critical thinking skills, and a passion for meaningful work, there’s a place for you in AI — even if you’ve never opened a programming textbook.TOI Education is on WhatsApp now. Follow us here.

Source link