5 Artificial Intelligence (AI) Stocks Trading at Bargain Prices After the March Correction

The tech-heavy Nasdaq Composite index corrected in March, driven by a combination of concerns about soaring artificial intelligence (AI) spending and the ongoing war in Iran. Weeks later, many of the top AI stocks sit well off their highs.

But research and studies show that leaders across the public and private sectors aim to lean further into AI adoption, especially in areas like agentic AI, which is just beginning to take off. In that light, the top AI stocks should still appeal to long-term investors. The journey to widespread AI adoption may be bumpy at times, but the destination seems increasingly clear.

Here are five AI bargains investors will want to focus on following March's market correction.

Image source: Getty Images.

1. Nvidia

Any discussion about AI could start with Nvidia (NASDAQ: NVDA), the dominant leader in data center AI chips. Its CUDA parallel computing platform enables GPU chips to work together to efficiently handle AI workloads. Currently 14% below its high, Nvidia stock trades at 36 times trailing earnings, near its lowest P/E ratio since 2019.

Street analysts estimate Nvidia will grow earnings by 39% annually over the next three to five years, making Nvidia stock a table-pounding bargain as long as AI investments don't collapse. It seems unlikely; CEO Jensen Huang has touted Nvidia's $1 trillion order book through 2027 for its current flagship chip, Blackwell, and its upcoming successor, Rubin, due later this year.

2. Meta Platforms

Social media giant Meta Platforms (NASDAQ: META) has been one of the most aggressive companies in investing in AI, and for good reason. AI is directly benefiting its core advertising business by automating ad creation and optimizing which people see which ads to boost monetization. Meta is also leaning into hardware products, recently announcing its next-generation AI glasses.

Meta's stock slipped 27% from its high. It recently lost two landmark court cases, ruling the company financially liable for the platform's addictive effect as well as its failure to protect children. Even with this baggage, Meta is too good a business to pass up here. Shares trade at just 24 times earnings, while analysts call for 22% annualized earnings growth over the years ahead.

3. Amazon

Investors have sold off Amazon (NASDAQ: AMZN) by 17% amid economic concerns and a whopping $200 billion AI capital expenditure (capex) plan. But the company has a huge incentive to build up its AI capacity. It will directly drive growth in Amazon Web Services (AWS) cloud services, its main profit engine. Meanwhile, AI and robotics could eventually revolutionize its e-commerce business.

AI investments are sucking up Amazon's free cash flow, but if you believe the company can realize a return on those investments, the stock is a bargain. Amazon's stock currently trades near its lowest valuation in more than 10 years, just over 16 times its cash flow from operations.

4. Arista Networks

Data centers need lightning-fast networking hardware to connect all those GPUs. Arista Networks (NYSE: ANET) is becoming an industry leader; its high-speed networking equipment has steadily eaten into Cisco Systems' market share since 2012. It's also building AI momentum, with management expecting AI networking sales to double to $3.25 billion in 2026.

The stock had gotten a little hot, with a P/E ratio pushing 60 late last year. But after its 21% decline, shares trade at 46 times earnings. Arista Networks isn't as cheap as the others on this list, but it's at least buyable, given its red-hot AI networking momentum. Analysts estimate Arista Networks will grow earnings by almost 19% annually over the next three to five years.

5. Microsoft

Cloud and software giant Microsoft (NASDAQ: MSFT) is 31% off its high, one of its worst declines in years. Investors worry that Microsoft may be falling behind in the AI race, and that its partnership with OpenAI could be a liability. However, there's no denying Microsoft's diversified and entrenched businesses, its massive $625 billion commercial backlog, and its fortress-like, AAA-rated balance sheet.

None of those things make Microsoft immune to disruption, but an empire doesn't fall overnight. Microsoft still has plenty of time to right its ship, and there's a strong possibility that buying into the pain will pay off for investors. The stock trades at less than 24 times earnings, a valuation it hasn't seen very often over the past decade.

Justin Pope has positions in Meta Platforms and Microsoft. The Motley Fool has positions in and recommends Amazon, Arista Networks, Cisco Systems, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.