Five AI Stocks Worth Buying During the Market Pullback
The S&P 500 has climbed steadily over the past three years, but recent turbulence has pushed quality stocks lower. Concerns about heavy spending on artificial intelligence and geopolitical tensions have weighed on investor confidence. For long-term investors, market volatility creates an opportunity to buy solid companies at reduced valuations.
History shows major indexes and established stocks recover and advance over time. Here are five AI stocks trading at reasonable prices today.
1. Palantir Technologies
Palantir Technologies (NASDAQ: PLTR) has operated for more than two decades, but earnings growth accelerated in recent years. The company launched its Artificial Intelligence Platform (AIP), software that helps customers aggregate, analyze, and deploy their data.
Commercial customers are adopting AIP rapidly, creating a new growth driver beyond Palantir's traditional government contracts. The stock has fallen significantly from its highs, making it a reasonable entry point despite a premium valuation.
2. Amazon
Amazon (NASDAQ: AMZN) operates as both a user and seller of AI products. It applies AI to its e-commerce fulfillment and delivery systems while offering customers a range of AI tools through Amazon Web Services (AWS).
AWS cloud revenue continues to grow alongside Amazon's core e-commerce business. The stock trades at 27x forward earnings, down from 35x a few months ago.
3. Microsoft
Microsoft (NASDAQ: MSFT) established its AI position through investments in OpenAI and its cloud computing business. The company offers customers broad access to AI products and services.
In its latest quarter, Microsoft reported cloud services revenue jumped 39% year-over-year, with demand exceeding supply. The stock trades at 24x forward earnings estimates, a discount from recent highs.
4. Apple
Apple (NASDAQ: AAPL) moved slower into AI than competitors but launched Apple Intelligence to add features across its device lineup. The company is entering a growth phase driven by services revenue, which has reached record levels as users subscribe to storage, entertainment, and other offerings.
The massive installed base of active Apple devices creates a foundation for recurring revenue. The stock trades at 30x forward earnings, a reasonable multiple for a company with consistent earnings growth.
5. SoundHound AI
SoundHound AI (NASDAQ: SOUN) specializes in voice AI through a patent-protected platform that translates speech directly to meaning without converting to text first. Customers across automotive, restaurant, retail, and financial services have signed contracts with the company.
Revenue nearly doubled last year, driven by new customer contracts. The company closed a record number of deals in its latest quarter. SoundHound remains unprofitable, making it a higher-risk bet for aggressive investors but worth monitoring for cautious ones.
Learn more: Finance professionals evaluating AI investments may benefit from understanding how AI affects company operations. Explore AI for Finance or the AI Learning Path for CFOs to deepen your knowledge of AI's business impact.
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