My Top 3 Bargain AI Stocks to Buy after the Stock Market Drop

Market Overview - The stock market downturn has created a rare opportunity to purchase high-quality stocks at discounted valuations [1] - The U.S. equity market started 2025 positively, with the S&P 500 index increasing nearly 2.8% in January [1] - However, geopolitical tensions, rising economic uncertainty, and trade war probabilities have negatively impacted investor confidence, with the Nasdaq Composite down 10% from its highs in March [2] Nvidia - Nvidia shares have dropped over 20% from a recent high of $153 on January 7, primarily due to concerns about AI overspending and trade wars [4] - The rapid growth of AI infrastructure is a key growth driver for Nvidia, which holds nearly 90% of the AI GPU market, with major tech companies expected to spend over $300 billion on AI technologies in 2025 [5] - Demand for Nvidia's Blackwell architecture systems is exceeding supply, targeting a larger addressable market focused on inference workloads [6] - Nvidia's integrated software ecosystem provides a competitive advantage, increasing customer switching costs, and plans to launch the Rubin GPU in the second half of 2027 [7] - Nvidia is trading at a forward P/E ratio of 27.1, significantly lower than its five-year average of 72, indicating a strong buying opportunity [8] Meta Platforms - Meta Platforms shares have fallen approximately 19% from a 52-week high of $740.91 on February 14 [9] - The strength of its core apps and robust AI initiatives position Meta for recovery, with over 3.3 billion daily active users providing vast data for content optimization [10] - Meta's advertising revenue reached $46.8 billion in Q4 2024, a 21% year-over-year increase, driven by strong advertiser demand [11] - The company plans to invest $60 billion to $65 billion in AI-related initiatives in fiscal 2025, positioning itself as a leader in the agentic AI space [12] - Meta has a strong balance sheet with $77.8 billion in cash and a forward P/E ratio of 23.9, making it an attractive investment [13] Oracle - Oracle shares have decreased 23% from a 52-week high of $198, presenting an attractive entry point for investors [14] - The company's remaining performance obligations (RPO) totaled $130 billion at the end of Q3 fiscal 2025, a 63% year-over-year increase, indicating strong demand for cloud services [15] - Oracle's cloud infrastructure business generated annualized revenue of $10.6 billion, with significant revenue visibility as 31% of RPO is expected to be recognized in the next 12 months [16] - Oracle's AI-related GPU revenue has increased almost 3.5 times year-over-year, and the company is investing in AI GPU clusters and an AI Data Platform [17] - Oracle is part of Project Stargate, a $500 billion AI infrastructure initiative, which could be a significant growth catalyst, with a forward P/E of 21.5, lower than its historical average of 32.8 [18]