With the stock markets flinching, it’s the right time to look into some AI stocks to buy on the dip.

This past week, we saw AI stocks selling off sharply. The leaders of last year’s surge in the Magnificent 7, saw trillions wiped off from their market caps. This downturn aligns closely with the outlook from JPMorgan, now expecting a 35% chance of a U.S. recession this year. This is up from 25% just last month.

Nevertheless, despite these shortcomings, the AI revolution is far from over. With JPMorgan expecting rate cuts in September and November, inflationary pressures are easing. This fiscal adjustment could prove to be a major catalyst for AI investments. As the economy returns to form, savvy investors will want to pounce on the opportunity and invest in AI stocks. With prices down and the sector poised for a resurgence, now is an ideal time to build on your portfolio. Let’s look at these attractive AI stocks to buy on the dip.

AI Stocks To Buy On The Dip: Apple (AAPL)

Apple’s (NASDAQ:AAPL) stock is down more than 5% in the past month due to the global stock market’s rout. Moreover, investing mogul Warren Buffett has nearly halved his stake in the Cupertino giant, adding to its woes.

Apple has been more of a battleground stock in the past year. Analysts have varying opinions over its growth trajectory. However, following the reveal of Apple Intelligence at the WWDC and the substantial upgrade cycle expected with the iPhone 16, there’s plenty to like about Apple stock.  Apple Intelligence is poised to redefine user experiences and set new quality standards. Moreover, analysts like Dan Ives of Wedbush forecast “monumental” demand for Apple ahead. He expects a multi-pronged AI revenue stream that could add $10 billion in incremental sales annually. Also, recent reports suggest a substantial sales recovery in key regions, including China and India.

Furthermore, Apple’s third-quarter (Q3) earnings report was released recently. Despite reporting a 2% decline in iPhone sales and marginal overall revenue growth in Mac and iPad sales, the company demonstrated operational efficiency. Sales costs were down 3.5%, with Apple reporting an annualized operating income of $120 billion.

Alphabet (GOOG, GOOGL)

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), wielding the power of Google Search and YouTube, remains among the best bets in the tech landscape.

Despite concerns over ChatGPT upending Alphabet’s search engine dominance, Alphabet has stood firm with its array of products, boasting upwards of 2 billion users. Moreover, its colossal user base, in turn, drives its unparalleled data collection capabilities, fueling its advertising efficacy.

It recently posted its second-quarter (Q2) results, surging past top-and-bottom-line estimates again with considerable aplomb. Q2 marked the sixth consecutive quarter of beats across both lines, posting a whopping $84.74 billion in sales, beating forecasts by $445 million. A whopping $64.62 billion of its impressive sales figures stemmed from its powerhouse advertising segment.

Not to be overshadowed, Google’s Cloud division celebrated a critical milestone, crossing $10 billion in sales and a notable $1 billion in operating profit for the first time. These figures underscore the firm’s growing position in cloud services, which currently holds a 12% market share, up from 11% last year.

This performance, however, didn’t shield the stock from a sell-off post-announcement, making it an interesting post-earnings play.

Amazon (AMZN)

E-commerce titan Amazon (NASDAQ:AMZN) is another Mag 7 stock that’s taken a hammering of late. In fact, it’s trailed behind its peers year-to-date, posting a modest 10.5% return compared to the S&P 500’s 13.3% gain.

Nevertheless, its current pricing dynamics set it up for an excellent rally at the back end of the year. Its deep integration of AI across its operations makes it one of the best Mag 7 stocks to load up on for the long haul. Its AI applications continue to enhance everything from eCommerce logistics to Amazon Web Services (AWS), which has been its main growth driver over the past several years.

In Q2, Amazon reported a 10% jump in sales, posting $148 billion. AWS’s cloud segment grew 19% to $26.3 billion, catapulting net income to double from $6.7 billion in Q2 2023 to $13.5 billion. With AWS expanding its market share, Amazon remains a dominant force in cloud computing. Given its robust positioning, Amazon is expected to post upwards of a 20% revenue jump over 2024 and 2025, backed by its massive data resources and cloud infrastructure.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.