These 3 Are Great Artificial Intelligence (AI) Stocks to Buy on the Dip Right Now

Core Insights - The artificial intelligence (AI) market is projected to grow from $244 billion in 2023 to over$1 trillion by 2031, indicating a significant demand for AI chips [1][2] - Recent volatility has led to declines of 26% to 38% in several high-profile AI stocks, presenting potential buying opportunities [2] Group 1: Nvidia - Nvidia has established itself as a leader in AI with its GPU chips, which are essential for training large language models, driving increased chip demand [4] - The company is advancing its AI chip technology with the Hopper and Blackwell microarchitectures, indicating a strong product roadmap [5] - Despite a 26% decline in stock price, analysts are raising revenue estimates for 2025 and 2026, with a PEG ratio of approximately 1.0, suggesting it remains a compelling investment [6] Group 2: Taiwan Semiconductor - Taiwan Semiconductor holds a dominant position in the chip foundry market with a 67% global market share, making it a key player in AI chip manufacturing [7] - The company is well-equipped to manufacture AI chips efficiently, with expectations of a 20% annual growth in the AI chip market through 2029 [8] - Following a 26% stock decline, Taiwan Semiconductor's PEG ratio stands at 0.7, indicating potential for significant investment returns based on expected 32% annualized long-term earnings growth [9] Group 3: ASML - ASML is the sole manufacturer of extreme ultraviolet (EUV) lithography machines, crucial for producing high-end AI chips [11] - The company's stock has seen a pullback of over 38%, attributed to an overheated valuation and fluctuating business with China due to U.S. export restrictions [12] - Analysts project ASML will achieve 19% annual earnings growth, with a current PEG ratio of 1.7, making it an attractive investment opportunity as the AI industry expands [13]