3 Genius Artificial Intelligence (AI) Stocks to Buy Amidst the Selloff
Keithen Drury, The Motley Fool
Thu, July 9, 2026 at 7:20 PM GMT+5:30
4 min read
- NVDA
+4.03%
While some segments of the artificial intelligence (AI) investing trend have done well over the past few months, others haven’t. However, most of these companies are still doing all right; it’s just that market sentiment has shifted. The thing about market sentiment is that it always comes back around eventually, especially if a company continues to report stellar growth
I think that’s the case with a handful of companies, and with a bit of an AI sell-off going on, investors would be smart to load up on these three established players with major upside potential
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
1. Nvidia
At the top of my list is Nvidia (NASDAQ: NVDA). This may seem like a boring AI pick, but sometimes these are the best stocks to invest in. Nvidia has led the AI build-out for the last three years, and is doing it again despite the stock not having a great year. Nvidia is down around 17% from its all-time high, but I could see it rocketing back up over the next few months as companies report Q2 earnings
Nvidia won’t report earnings until August, but when it does, Wall Street analysts expect a record-setting quarter. On average, they expect 96% revenue growth to $91.7 billion. Nvidia tends to outperform analysts’ expectations, so don’t be surprised to see a growth rate above 100%
Demand for Nvidia GPUs (graphics processing units) is off the charts, and it may not let up for some time, especially if Nvidia’s projection of $3 trillion to $4 trillion in global annual data center capital expenditures by 2030 proves true. With shares trading for an attractive 21.7 times forward earnings, now is a perfect time to load up on Nvidia stock
2. Taiwan Semiconductor
Next up is Taiwan Semiconductor Manufacturing (NYSE: TSM), Nvidia’s primary logic chip fabricator. Taiwan Semiconductor also supplies most of the companies Nvidia competes with, making it a great neutral investment in the AI realm. Essentially, as long as there is more spending on data center computing equipment, Taiwan Semiconductor is slated to see strong growth
That sentiment has propelled Taiwan Semiconductor to be one of the best AI stock picks so far in 2026, rising more than 40% this year. It’s down nearly 10% from its all-time high, so it’s not nearly as much of a deal as the other two, but it’s still a worthwhile AI stock pick
