3 Best AI Stocks to Buy in a Market Dip

Published Date : 20/07/2025 

Nvidia, Palantir, and Microsoft are leading the AI revolution. These stocks offer significant growth potential and could be excellent buys on a market pullback. 

The market has returned to its highs, along with many top artificial intelligence (AI) names. However, another market dip could always be around the corner. Let's look at three top AI stocks that have made strong runs and would be good buys on a pullback.

With a high valuation but attractive growth opportunities, Palantir Technologies (NASDAQ: PLTR) is a stock that would be attractive on a dip. The company has emerged as one of the market's most compelling AI growth stories, and its momentum has been gaining speed.

In the first quarter, Palantir posted its seventh consecutive period of accelerating growth, with revenue up 39%. The rise is being led by its U.S. commercial segments, which saw sales jump 71% and the value of future deals soar 127%.

While there is a lot of talk about which company is building the best AI model, Palantir is focused on something far more practical: making AI useful. Its Artificial Intelligence Platform (AIP) uses AI models to help solve real-world problems.

AIP does this by gathering data and then connecting it to physical assets and operational workflows, allowing companies to make AI more useful. As a result, the platform is being used for a growing list of purposes, including hospitals monitoring for sepsis, insurers using it in their underwriting, and energy companies optimizing their pipeline infrastructure.

The company's largest customer is the U.S. government, which is starting to embrace AI to become more efficient. Last quarter, Palantir's government revenue climbed 45%. The company also recently landed a major deal with NATO, expanding into international defense just as Europe ramps up military spending. That gives it three potential growth engines: domestic commercial enterprises, the U.S. government, and now the international public sector.

Yes, the stock is expensive by traditional metrics, but Palantir looks like it's laying the groundwork to become one of the next megacaps. As such, any pullback could be a great buying opportunity.

Nvidia (NASDAQ: NVDA) has once again been helping lead the market higher. The company recently got good news when the Trump administration said the U.S. would ease chip export controls, allowing the company to resume selling its H20 chips to China. This will add billions in revenue.

Nvidia remains the king of AI infrastructure. The company's GPUs are the backbone of AI and machine learning, making it a critical player in the AI ecosystem. With a strong presence in both consumer and enterprise markets, Nvidia's growth potential is immense.

Microsoft (NASDAQ: MSFT) has been growing its cloud computing revenue quickly. The company's Azure platform is a leading cloud service, and it has been attracting companies with its robust AI capabilities. OpenAI's popular AI models, integrated with Azure, have further solidified Microsoft's position in the AI market.

Microsoft's AI offerings are not limited to cloud services. The company is also making significant strides in AI research and development, with applications ranging from healthcare to autonomous systems. As more businesses adopt AI, Microsoft is well-positioned to benefit from this trend.

In conclusion, Palantir, Nvidia, and Microsoft are three AI stocks that have shown strong performance and have the potential to continue growing. Any market dip could present an excellent opportunity to invest in these companies. 

Frequently Asked Questions (FAQS): 

Q: What is Palantir's main AI product?

A: Palantir's main AI product is the Artificial Intelligence Platform (AIP), which uses AI models to solve real-world problems by gathering data and connecting it to physical assets and operational workflows.

Q: Why is Nvidia considered the king of AI infrastructure?

A: Nvidia is considered the king of AI infrastructure because its GPUs are the backbone of AI and machine learning, making it a critical player in the AI ecosystem.

Q: What is Microsoft's role in the AI market?

A: Microsoft's role in the AI market includes its leading cloud service Azure, which integrates OpenAI's popular AI models, and its robust AI research and development efforts.

Q: How has Palantir's revenue been growing?

A: Palantir's revenue has been growing strongly, with a 39% increase in the first quarter, led by a 71% jump in U.S. commercial segments and a 127% increase in the value of future deals.

Q: What recent development has benefited Nvidia?

A: Nvidia recently benefited from the U.S. easing chip export controls, allowing it to resume selling its H20 chips to China, which will add billions in revenue. 

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