Got $1,000 to Invest? Here Are 2 Magnificent Artificial Intelligence (AI) Stocks Down 12% to 30% to Buy Hand Over Fist Before July Is Over
Keithen Drury, The Motley Fool
Mon, July 20, 2026 at 10:45 PM GMT+5:30
4 min read
- NVDA
+0.80% - MU
+4.35%
July has been an odd month for artificial intelligence (AI) investors. Some stocks have done quite well, but some of the first half’s biggest winners have performed poorly. However, nothing has really changed in the AI investment landscape, and there could be huge growth still to come in this industry. That makes taking advantage when AI hardware stocks go on sale a smart thing to do, and Micron (NASDAQ: MU) and Nvidia (NASDAQ: NVDA) look like genius buys this month
Both of these companies are at the heart of the AI build-out and look primed to head higher throughout the remainder of 2026 and into 2027
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 »
Micron
Micron’s stock has had a banner year, and the company has also done incredibly well. Thanks to a shortage of supply in the memory chip market, prices are soaring, which boosts Micron’s earnings and profits. This tailwind is far from slackening: Wall Street expects the memory company to deliver 80% growth in its fiscal 2027 (which begins in September)
However, that outlook did not prevent the stock from selling off over the past few weeks as investors grew more worried that the AI demand curve may not last as long as predicted. But to think that requires one to ignore the messaging that these companies have provided lately. Micron has informed investors that it expects the undersupply in the memory chip market to persist beyond 2027. That’s after it expects to bring some of its new production capacity online, but it still could be a while before Micron and its peers can catch up with the incredibly high demand for their wares. Furthermore, with the AI infrastructure build-out expected to keep accelerating through 2030, there’s plenty of growth ahead for this investment trend.
As a result, I think Micron is a solid stock to buy on the dip, as the medium-term tailwinds are blowing heavily in its favor
Nvidia
Nvidia makes the GPUs that provide the bulk of AI computing power, and it uses Micron’s memory chips in its products. So, as demand for Nvidia’s processors rises, so will demand for Micron’s chips. All indications point to that demand rising, as Nvidia informed investors it expects that hyperscalers’ data center capital expenditures will rise to $1 trillion in 2027, up from $650 billion in 2026. The reality is that Nvidia likely has most of its product orders for 2027 already booked in its system, as the AI hyperscalers want to ensure the computing chips they need will be available once the rest of their data center infrastructure is complete. That gives Nvidia inside information about the future of the tech sector that it’s freely relaying to the public. Yet the market hasn’t really acted on it.
