Right now, the stock market is crashing on recession fears. And there’s no sugarcoating it; it’s ugly out there. But despite the gloomy price action, we believe these recession fears are overblown. In fact, we think this stock market crash is setting the stage for some great dip-buying opportunities – particularly in AI stocks. 

The big picture here is that the U.S. economy is slowing and is relatively weak. But we don’t believe it is crashing, nor is it in a recession. 

What makes us so sure? Well, Gross Domestic Product (GDP) growth remains positive. The labor market is still adding jobs. There are still more job openings than unemployed people. Corporate earnings are still growing. Business sentiment surveys are still generally positive. 

Indeed, the bulk of evidence strongly suggests that the economy is not in a recession. It is also not slowing quickly enough right now to drop us into a recession anytime soon. 

Not to mention, the Federal Reserve is set to cut interest rates multiple times over the next few months. And that will only reinvigorate the economy – not weaken it. 

That means now could be a phenomenal time to buy the dip in AI stocks.

AI Stocks Offer a Tantalizing Dip-Buying Opportunity

Given such powerful evidence to the contrary, we view Wall Street’s current recession fears as overblown. 

The stock market is acting like this is the Great Financial Crisis or COVID Crash all over again. Spoiler alert: It is not – which means this selloff is a buying opportunity. 

That’s why we’re focused on uncovering emerging opportunities in the AI sector. 

We are still in the early innings of a massive, multi-year AI investment cycle that – so long as the economy does avoid a recession – will power enormous earnings growth for AI companies over the next several years. That supercharged earnings growth will power top AI stocks higher. 

Yet, AI stocks have been at the epicenter of the stock market’s recent selloff. That means it could be time to get aggressive with these stocks before they go on to soar over the next few years. 

But what AI stocks should you be looking at right now?

We’re looking for top AI stocks that have been hit hard over the past few weeks. Quantitatively, that means we’re looking at those that have been strong performers in 2024 but have dropped excessively over the past month. 

Those are the AI stocks we believe are primed for a big rebound. 

The Final Word

Just consider Camtek (CAMT), which provides cooling equipment for AI data centers. That stock is down 35% over the past month – but it is still up about 20% year-to-date. 

Or Arm (ARM). Over the past month, the British chip designer has crashed, dropping about 30%. Yet, ARM stock is still up about 50% this year. 

Micron (MU) is another good one. It is also down about 30% over the past month. But thanks to increasing AI-datacenter demand for its memory solutions, MU stock is still up about 10% year-to-date. 

Dell (DELL) is a worthy candidate, too. That stock has been slammed as well, dropping about 30% over the last month. But it is still up 30% year-to-date on surging demand for its new AI PCs. 

Names like Nova (NVMI), Applied Materials (AMAT), Western Digital (WDC), ASML (ASML), Teradyne (TER), and Qualcomm (QCOM) all fall into the same boat. They’re all down big over the past month but still up year-to-date, driven higher by strong AI tailwinds. 

We think this group of AI stocks could produce some huge winners over the next few months. 

We plan to recommend a few of these picks to our subscribers in the coming days.

Check out what we’re seeing in the markets right now.

_{On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.}

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