My Top 3 Smart Buys: Discounted AI Stocks Post-Market Dip

The U.S. stock market started 2025 on an upbeat note, with the S&P 500 The index climbed by approximately 2.8% in January 2025. The market mood remained largely positive, driven by robust financial reports. artificial intelligence Companies driven by AI and an optimistic outlook towards a robust economy.

Nonetheless, circumstances have deteriorated due to escalating geopolitical strains, mounting economic unpredictability, and a heightened likelihood of trade conflicts, all of which are undermining investors' faith. Nasdaq Composite much of March was spent in corrective mode, down 10% from its peak levels.

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However, this difficult phase marked by widespread selling presents some of the finest chances for purchasing over the long term, especially when it comes to acquiring shares of top-tier firms possessing robust competitive edges and solid finances, since these stocks are now available at reduced rates.

Below is my lineup of three premium AI-driven stocks that have turned into great value purchases.

Nvidia

Shares of Nvidia (NASDAQ: NVDA) have dropped over 20% since reaching a peak of $153 on January 7th, primarily due to concerns regarding excessive spending on artificial intelligence and escalating trade disputes.

Even with this downturn, Nvidia remains driven mainly by the swift development of AI infrastructure. As a leading semiconductor company controlling nearly 90% of the AI GPU sector, they stand to benefit greatly as tech firms prepare to invest more than $300 billion in AI technologies and data centers throughout 2025. The ongoing strong desire for Nvidia’s specialized AI GPUs and optimized software solutions persists amidst these advancements.

The demand for the newly released Blackwell architecture systems has already outstripped the available supply. These systems are primarily intended for inference tasks (such as deploying and operating pre-trained large language models) and particularly excel at handling reasoning, which is a specific type of inference task.

Blackwell is ideally suited for sophisticated models that require substantial computational resources and execute complex, multi-step operations. By concentrating on repetitive inferencing tasks rather than training workloads, Nvidia is now aiming at a significantly broader potential customer base.

Moreover, Nvidia’s closely linked software environment offers a substantial competitive edge because it has fostered a loyal clientele by significantly raising the cost for customers who wish to switch to another platform.

NVIDIA CEO Jensen Huang also disclosed plans to introduce the Rubin GPU, which will succeed the Blackwell GPUs, in the upcoming period. second half of 2027 In a talk at the recently held GTC conference centered around AI advancement.

Even with numerous advantages, Nvidia has a forward Price/Earnings ratio of 27.1, which is significantly below its five-year average of 72. Given Nvidia’s strong standing in the fast-growing artificial intelligence sector and considering recent adjustments in stock valuation, this appears to be a compelling purchasing chance.

Meta Platforms

Shares of Meta Platforms (NASDAQ: META) It has also dropped considerably, roughly 19% below its 52-week peak of $740.91 set on February 14th. However, the unmatched power of its primary suite of applications (such as Facebook, Instagram, Messenger, Threads, and WhatsApp), along with strong advancements in artificial intelligence, sets the stage for a significant rebound over the next few months.

In December 2024, with more than 3.3 billion individuals engaging with at least one of its social media platforms every day, Meta has extensive access to up-to-the-minute information regarding customers' likes, dislikes, activities, and purchasing habits. The company utilizes sophisticated artificial intelligence tools to analyze this wealth of data, enhancing their content suggestion systems to increase interaction among users even more.

This translation resulted in significant expansion for Meta’s advertising sector, generating revenues of $46.8 billion in the final quarter of 2024, marking an increase of 21% compared to the previous year. The firm profits from higher advertiser interest and elevated ad prices across their platforms—largely attributable to their advanced ad targeting features.

Facebook’s parent company, Meta, is significantly ramping up its investments in artificial intelligence. For the fiscal year 2025, they intend to allocate between $60 billion and $65 billion for expanding their AI-focused data centers and related projects. They stand out as leaders in agentic AI through their popular Meta AI assistant. Additionally, the firm is advancing in developing open-source large language models.

Meta also has an impressive financial position, holding $77.8 billion in cash against $49.8 billion in debt. Despite this, its valuation appears quite sensible, carrying a forward price-to-earnings ratio of 23.9 — below that of major tech companies like Nvidia, Microsoft, and Amazon, each of which holds significant market strength within their sectors. Therefore, Meta looks like a smart investment choice for savvy investors in 2025.

Oracle

Finally, Oracle (NYSE: ORCL) The stock has experienced significant fluctuations, with share prices dropping 23% below their 52-week high of $198 recorded on December 9. This steep decline offers a compelling buying opportunity for investors, given Oracle’s robust expansion in the cloud infrastructure sector and swift advancements in artificial intelligence projects.

At the close of the third quarter of fiscal year 2025 (ending December 31, 2024), Oracle’s remaining performance obligations (RPO)—a gauge representing potential future income derived from current agreements—reached $130 billion. This figure marks a substantial rise of 63% compared to the previous year. The growth was particularly robust within their cloud segment, which saw an uptick of 90%, constituting almost 80% of total RPO. Such statistics underscore strong market appetite for Oracle's cloud offerings. Additionally, considering that about 31% of these commitments are anticipated to convert into actual revenues over the coming twelve months, the corporation enjoys considerable assurance regarding incoming funds.

Oracle’s cloud infrastructure (OCI) division has reported an annualized revenue of $10.6 billion. The company is concentrating on increasing the number of operational data centers and enhancing their power capabilities to transform potential earnings into real income. Given that the present demand for cloud services exceeds available supplies, OCI’s revenue growth rate could speed up even more as they expand their data center capacities.

The firm is advancing swiftly in both AI training and inference. By the close of the third quarter, Oracle’s income derived from GPUs for artificial intelligence purposes had surged nearly three-and-a-half-fold compared to the previous year's earnings. Additionally, Oracle commits substantial resources toward constructing AI GPU clusters independently or through collaborations with other enterprises. The company has further introduced an AI Data Platform designed to help customers leverage prominent large-language models sourced externally to examine information housed within Oracle databases.

Oracle is involved in Project Stargate, a major $500 billion AI infrastructure project supported by the U.S. government. Although this hasn’t boosted Oracle’s RPO growth so far, it could become a key driver for expansion over the next few months.

Nevertheless, the stock has a forward Price-to-Earnings ratio of 21.5, which is below its typical five-year average of 32.8. Given these circumstances, significant good news might cause the company’s share price to rise in 2025.

Is it wise to put $1,000 into Nvidia at this moment?

Before purchasing Nvidia stocks, keep this in mind:

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John Mackey, who previously served as the CEO of Whole Foods Market—an entity now owned by Amazon—is part of The Motley Fool’s board of directors. Additionally, Randi Zuckerberg, formerly responsible for market development and communications at Facebook and sibling to Meta Platforms CEO Mark Zuckerberg, also sits on The Motley Fool’s board. Manali Pradhan does not hold any shares in the stocks discussed. However, The Motley Fool holds stakes in and endorses Amazon, Meta Platforms, Microsoft, Nvidia, and Oracle. Additionally, they recommend the following options: purchasing long-term $395 call options for Microsoft in January 2026 and selling short-term $405 call options for Microsoft in January 2026. The Motley Fool has a disclosure policy .