Got $1,000? 2 Magnificent Artificial Intelligence (AI) Stocks Down Over 15% to Buy Hand Over Fist

Although the artificial intelligence (AI) investment theme has displayed some weakness during the past few weeks, it's still a major long-term trend that will dominate the market for the next few years. As a result, any short-term weakness should be viewed as a buying opportunity, and investors shouldn't wait for a better deal because the market tends to recover quite rapidly.

Two stocks down more than 15% from their all-time highs that I think are brilliant buys are Micron Technology (NASDAQ: MU) and Broadcom (NASDAQ: AVGO). These two have major tailwinds blowing in their favor that will aid their businesses from now until the end of 2027. That makes any current weakness an excellent time to load up on shares, and I think both are great buys now.

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1. Micron Technology

Micron is one of the best-performing stocks this year and is currently in the top five highest-performing stocks in the S&P 500 (SNPINDEX: ^GSPC) year to date.

Micron's success this year has come from soaring memory chip demand caused by the data center build-out required for AI workloads. Memory chips are critical for every computing device, but the industry wasn't ready for the subsequent demand wave. As a result, demand far exceeds supply, causing chip prices to soar. That's why laptops and other computing devices have gotten so expensive: There isn't enough supply to meet total demand.

This dynamic has led to Micron's earnings and revenue soaring.

MU Revenue (Quarterly YoY Growth) data by YCharts

However, Micron is far from done. Micron's fiscal year (FY) 2026 wraps up in August, so it's useful to look at FY 2027 projections. Next year, Wall Street analysts expect 81% revenue growth and earnings per share of nearly $150, up from the $73.32 they forecast for FY 2026. That's huge growth, and it looks like the stock is a great candidate to buy on the dip, but only if market conditions last.

Micron's management team offered insight into longer-term demand during its last earnings announcement and stated that it expects market tightness to persist beyond 2027. That's great news for long-term investors, and I think Micron is a great stock to buy on the dip, as new highs are coming.

2. Broadcom

Broadcom is involved in the computing chip design side of the AI arms race, competing against giants like Nvidia and AMD. However, it isn't designing another graphics processing unit (GPU). Instead, it's partnering with AI hyperscalers to design and produce custom AI chips.

These chips are specialized and work only for one type of workload, but they outperform GPUs in their specialty. That makes them highly attractive because it's a way to increase computing power without increasing build-out costs.

Broadcom expects monster growth in this product line during the next year and a half. Management has repeatedly told investors that the company expects more than $100 billion of revenue in the AI semiconductor business in 2027. For reference, this business unit generated $10.8 billion in revenue during its most recent quarter.

That's major growth ahead and will lead to strong returns if Broadcom's projections pan out. With several big-name AI giants on its client list, I think those projections are quite safe.

Wall Street anticipates big things from Broadcom, with revenue expected to grow at a 67% this year and 62% next year. That's major growth and could lead to Broadcom becoming one of the top AI investments in the market if it pans out. As a result, buying the stock on the dip today makes a ton of sense, since the market may not be ready for the growth Broadcom expects next year.

Keithen Drury has positions in Broadcom and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Broadcom, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.