5 Top AI Stocks to Buy on the Dip as Slowdown Fears Hit Markets

AI stocks are under pressure Monday, as calls to slow AI development over safety concerns raise questions about future infrastructure spending.

Higher Treasury yields—with the 10-year briefly touching 5%—are also pressuring growth-stock valuations, potentially creating opportunities if selling becomes excessive.

With that in mind, Nvidia NVDA), Taiwan Semiconductor TSM), Arista Networks ANET), Dell Technologies DELL), and Hewlett Packard Enterprise HPE) stock all sport a Zacks Rank #1 (Strong Buy).

Their operating momentum makes them worth considering if the AI selloff gets overdone rather than reflects a genuine deterioration in earnings prospects.

1. Nvidia – NVDA

Nvidia, the AI chip leader, supplies the GPUs, networking, and software powering AI training and inference. Fiscal second-quarter data-center revenue surged 117% year over year to $89 billion, while adjusted gross margin reached 75%. Management’s $108 billion Q3 revenue outlook underscores substantial demand, supporting the case for considering NVDA on a sentiment-driven pullback.

2. Taiwan Semiconductor –TSM

Taiwan Semiconductor provides the advanced chip manufacturing essential to the AI buildout. Second-quarter revenue grew roughly 34% in U.S.-dollar terms to $40.2 billion, with gross margin reaching 67.7%. August sales subsequently increased 53% YoY, offering another encouraging demand signal as its newest manufacturing technology ramps up.

3. Arista Networks – ANET

Arista supplies high-speed networking that connects computing resources across AI data centers. Second-quarter revenue increased nearly 38% to $3.04 billion, while adjusted EPS climbed nearly 40%. Its 49.9% adjusted operating margin demonstrates strong profitability, and new 1.6-terabit networking platforms position Arista for increasingly demanding AI deployments.

4. Dell Technologies – DELL

Dell supplies AI servers, storage and supporting data-center infrastructure. Fiscal second-quarter AI-server revenue doubled to $16.4 billion, while its AI-server backlog reached a record $95 billion. Management also raised its current fiscal 2027 adjusted EPS guidance to $25.50 from $17.90, providing a particularly compelling earnings-based argument for considering DELL on weakness.

5. Hewlett Packard Enterprise – HPE

HPE combines AI servers, networking and hybrid-cloud infrastructure. It's fiscal third-quarter revenue most recently rose 34% to $12.2 billion, with Cloud & AI operating margin expanding to 17% from 7% a year earlier. HPE also raised its FY26 adjusted EPS guidance range to $3.75-$3.85 and free-cash-flow guidance to at least $3.75 billion, strengthening the investment case beyond AI enthusiasm.

Honorable Mention & Bottom Line 

Super Micro Computer SMCI) also sports a Zacks Rank #1 (Strong Buy) and supplies AI servers and liquid-cooled, rack-scale systems. Most recently, Super Micro’s fiscal fourth-quarter sales reached $11.1 billion versus $5.8 billion a year earlier, while fiscal 2027 revenue guidance of $65-$72 billion points to substantial further expansion.

For all six, the strongest buy-the-dip opportunity would pair lower share prices with resilient earnings expectations. Gradual buying is more defensible than assuming the first decline marks the bottom.

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This article originally published on Zacks Investment Research (zacks.com).

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