WITH Nasdaq composite In the territory of corrections, investors should consider the investment of some cash on the stock market. Corrections are defined as a drop of 10% with more and more maximum, but they occur quite often (just more than every year since 1980). Sometimes these corrections turn into a teddy bear, but the second time they turn back and go more, and I believe the latter are more likely.
As a result, I look at the shares that I can now buy to use sales, and I have come up with five fantastic options that will regret that you will not record now for dirty prices.
Some investors think that the movement of artificial intelligence (AI) causes this correction, similar to the DOT-com bubble in 2000 (basically 25 years ago), but I think it is a bad assumption.
While AI and the Internet have a similar effect in the way our lives change, the companies are much different from the internet companies that have collapsed. For one thing, they make huge profits and have a reasonable business model.
In the AI hardware, AI enters billions of investment dollars because many companies see where the world is going. As a result, companies love Nvidia(NASDAQ: NVDA) and Broadco(Nasdaq: Avgo) are huge users.
Since 2023, Nvidia’s revenue has increased on the back of the AI demand.
This year, it is expected that his revenue will reach $ 204 billion, which clearly indicates that AI investments are not decaying. Nvidia Graphics processing units (GPU) Are the backbone of AI, while training AI models and then processing conclusions when arranged. Since many large technological companies announce record capital expenditures in 2025, Nvidia will be the primary user of this consumption.
The second user is a Broadcom, which makes switches for connection for data centers and adapted AI accelerators (Broadca names XPU). Broadcom’s management sees a huge and growing demand for XPU, as they can often surpass the GPU when the work load is properly placed.
Broadcom currently has three companies that use their custom XPUs. The company believes that this hardware will have a market opportunity between $ 60 billion and $ 90 billion in revenue by 2027. However, Broadcom also has four other customers who have just started their XPU, and they are not involved in this figure. Since Broadcom’s 12 -month revenue sitting at $ 55 billion, he has a massive rarity runway.
I am convinced that these two will continue to work quite well over the next few years, because major technological companies cannot afford to slow down consumption on AI. Otherwise, they risk behind the competitors who are willing to continue their consumption of AI. As a result, I use this DIP to load shares of these two.
Then I evaluate AI Hyperscalers, which are technological giants to build AI infrastructure. The companies I look at in this area are Amazon (NASDAQ: AMZN),, Alphabet (Nasdaq: Goog)(Nasdaq: Googl)and Meta platform (Nasdaq: Meta)who are all customers of Nvidia and Broadc and all announced a huge consumption of AI infrastructure.
These are not some companies flying at a night that spend money they do not have; Instead, they have a solid basic business to fund their AI investments.
For Amazon, these are trade and computing segments in the cloud. Although Amazon’s store sales could be under pressure if the trade war of increased prices, his cloud computing department, Amazon Web Services (AWS), should be fine.
Cloud Computing is the main growth segment for Amazon and is a huge user of work load migration in cloud consumption and AI. With 58% of Amazon’s operational profit that comes from cloud computing in the last 12 months, she contributed to Amazon’s profit far more than a store.
Alphabet and meta platforms have companies aimed at advertising that funded their investments. These two generate the tone of money from different properties (Alphabet has Google and YouTube, while Meta has Facebook, Instagram, WhatsApp, Threads and Messenger) and use it to build AI infrastructure.
Alphabet and the target have popular generative AI models, but they are still working on shooting a market share in this area. Although their investments in the AI will continue (which is in the long run), their short -term revenue from ad can fight. However, this consumption is always recovering, and by purchasing each section now and in the long run you will have a great input price.
Although each of these supplies at some point in set, the recent sale has made each section quite affordable.
From the price perspective to earnings (p/e), many of these stocks look very attractive and are the cheapest that have been. I think investors should use the latest market sales in their advantage and Loading these companies that will be long -term winners.
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Randa Zuckerberg, former director of the development of the market and spokeswoman for Facebook and sister of Meta Platform Executive Director Mark Zuckerberg, is a member of the Board of Directors Motley Fool. John Mackey, former Whole Foods Market CEO, Amazon Branch, is a member of the Board of Directors Motley Fool. Suzanne Frey, Executive Director of Alphabeta, is a member of the Board of Directors Motley Fool. Keithen drury There are positions in the alphabet, Amazon and Nvidia. Motley Fool has positions and recommends alphabet, Amazon, meta platform and Nvidia. Motley Fool recommends Broadcom. Motley Fool has disclosure rules.
