2 Top Growth Stocks I'm Buying on the Dip

Key Points

• CoreWeave's 37% plunge from recent highs comes despite revenue exploding from under $2 billion to an expected $5 billion in 2025, creating a rare entry point in artificial intelligence (AI) infrastructure.

• Nvidia's 6% post-earnings drop ignores record $46.7 billion quarterly revenue and 56% data center growth, with the sell-off driven by unrealistic expectations rather than deteriorating fundamentals.

• Both companies remain the backbone of the AI revolution, with analyst price targets suggesting significant upside from current levels.

• 10 stocks we like better than CoreWeave ›

The market just handed bargain hunters a gift wrapped in panic. CoreWeave (NASDAQ: CRWV) plunged 37% from its 30-day high as of Sept. 2 (time of writing), closing at $93.34 after another 9.59% slide on Tuesday. Nvidia (NASDAQ: NVDA) has dropped 6% since releasing stellar second-quarter FY2026 earnings last week.

The artificial intelligence (AI) infrastructure boom hasn't slowed -- only Wall Street's ability to value it has. These aren't broken businesses. They're the plumbing of the AI revolution, and right now, they're trading at a discount.

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Here's why I'm buying both of these top AI stocks when they're on the dip.

Image source: Getty Images.

CoreWeave's brutal math creates opportunity

CoreWeave's collapse looks terrifying -- until you examine what actually happened. The company powers AI workloads for OpenAI and Microsoft, with revenue set to hit $5 billion in 2025 -- up from under $2 billion today.

That's triple-digit revenue growth in a world where most companies struggle for 10%. Yet the stock has been pummeled by a perfect storm of negative sentiment: insider selling after the lock-up expiry, a broader tech sell-off, and concerns about its proposed Core Scientific acquisition losing value.

The bears focus on the acquisition's declining value -- down nearly 10% since the announcement -- and the company's cash burn. They're not wrong about the risks. CoreWeave carries heavy debt, and its Q2 losses were steep despite record revenue.

But sentiment among most analysts remains positive. Citigroup upgraded CoreWeave to "buy" not long ago with a $160 target, citing accelerating AI demand. H.C. Wainwright called the pullback a "compelling entry point."

At 13 times trailing sales, CoreWeave trades at a premium to the tech sector's 8.4 times average, but companies growing revenue at triple-digit rates annually deserve premium valuations. The insider selling looks bad, but insiders still own the majority of shares -- they're taking profits, not abandoning ship.

Nvidia's "disappointment" is everyone else's triumph

Nvidia's sin? Growing data center revenue "only" 56% year over year to deliver $46.7 billion in quarterly revenue. Sequential growth slowed to 5% -- the first single-digit quarter since the AI boom began. Chinese sales hit zero due to export restrictions. The company guided to $54 billion for the next quarter, which somehow disappointed a market conditioned to expect miracles.

Let's put this in perspective. Nvidia just generated nearly twice Adobe's annual revenue in a single quarter. It authorized a $60 billion buyback and delivered $13.5 billion in free cash flow. Yet the stock sold off because investors have grown so accustomed to triple-digit growth that this 56% year-over-year expansion felt like a failure.

The China concern is real but overblown. Yes, Nvidia reported zero H20 chip sales to China this quarter. But the company still guided to $54 billion next quarter without any contribution from China, proving that demand elsewhere more than compensates.

The slowdown from triple-digit to "merely" 56% growth sounds alarming until you realize Nvidia added more revenue this quarter than most Fortune 500 companies generate in a year. Wall Street is panicking because growth slowed from spectacular to merely extraordinary. That's not a business problem -- it's a perception problem, and perception problems create buying opportunities.

Wall Street's reality check creates my entry point

Both stocks suffer from the same disease: expectations inflation. When companies consistently deliver extraordinary results, merely excellent becomes disappointing. CoreWeave's projected 128% revenue growth in 2026 isn't enough when investors worry about debt. Nvidia growing 56% isn't enough when investors expected 75%.

Yes, both stocks carry risks -- CoreWeave's debt, Nvidia's China exposure -- but perfect companies don't go on sale. Wall Street is punishing CoreWeave for not growing faster, and Nvidia for delivering a jaw-dropping $46 billion in a single quarter, instead of more.

That's not failure -- that's fear. And fear is exactly when I want to buy any stock -- but particularly these two AI cornerstones.

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Citigroup is an advertising partner of Motley Fool Money. George Budwell has positions in Microsoft and Nvidia. The Motley Fool has positions in and recommends Adobe, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.