3 Artificial Intelligence (AI) Stocks to Buy During the Stock Market Downturn

Core Viewpoint - The current downturn in the stock market, driven by tariff uncertainties, presents investment opportunities in the artificial intelligence (AI) sector, which has been a dominant trend since 2023 [1][2] Group 1: AI Market Outlook - AI stocks are expected to remain the best investment over the next three to five years, making the current dip an opportunity to acquire undervalued stocks [2] - Major AI companies like Nvidia, Taiwan Semiconductor Manufacturing (TSMC), and Broadcom are projected to experience significant growth in the coming years [3] Group 2: Company-Specific Insights - Nvidia's CEO anticipates data center capital expenditures could approach $1 trillion by 2028, positioning Nvidia to capture a substantial share of this market, especially as its stock is down approximately 25$60 billion and $90 billion by 2027, despite its XPUs being specialized for specific tasks [5][6] - TSMC, as a leading chip foundry, is expected to see AI-related revenue grow at a 45% compounded annual growth rate (CAGR) over the next five years, with overall revenue growth projected at nearly 20% CAGR [7][8] Group 3: Valuation and Investment Timing - The stocks of Nvidia, Broadcom, and TSMC are currently trading at least 25% below their all-time highs, presenting an attractive forward price-to-earnings (P/E) ratio [11][12] - These companies are expected to grow faster than the broader market, making it an opportune time to invest in these AI leaders ahead of upcoming Q1 financial results announcements [13]