Stop sleeping on these 3 tech stocks with insane AI potential

Last Thursday, AI stocks took a beating. Market leader Nvidia (NASDAQ:NVDA) lost more than 3.5% of its value in one day. Indeed, this is not the kind of decision that NVDA shareholders are accustomed to. Many new Nvidia shareholders may be biting their nails over this decision. However, this is a normal, even healthy, decision after the title’s euphoric run over the past year.

Like last time, those who brave the carnage may be the ones who can secure their ticket to the next stage further up. Of course, the valuation is extensive and the AI ​​boom will stop from time to time. However, such volatile moves are expected when you are betting on the biggest and best high-growth companies riding the AI ​​wave.

As the AI-driven correction continues into the last week of June, dip buyers may have a better chance of betting on companies with long-term potential in the AI ​​space.

NVIDIA (NVDA)

There’s perhaps no better AI stock to watch for a downside than big Nvidia itself. Even if the choppy end to the trading week is the start of a more severe correction or sell-off that will bring the bears out of their caves, this won’t be the first drastic decline in NVDA stock. It won’t be the last either.

While the AI ​​boom appears to span several years, it is far too early to call it a “peak” at Nvidia. Of course, stock prices don’t always follow fundamentals. However, given Nvidia’s lead over the competition with its AI chips (Blackwell later this year, Rubin in 2026), NVDA stock remains the top AI company.

Additionally, getting into the semiconductor business involves high startup costs. With the vast economies of scale (it has AI talent, data advantage, and numerous customer partnerships in various technology areas), Nvidia seems more likely to get a head start in the race for AI rather than giving up ground, even if competitors give AI. their everything.

AMD (AMD)

It was strange for Advanced microsystems (NASDAQ:AMD) stocks jumped 4.6% last Thursday, as semiconductors led the way lower. Without a doubt, AMD stock is arguably the best alternative to NVDA. And while the runner-up in the AI ​​chip race likely won’t outpace Nvidia in the near future, there’s no shame in betting on a company destined for a silver medal, especially if you have the opportunity to buy shares at a significantly lower price. cheaper price.

A few days ago, Piper Sandler analyst Harsh Kumar said he was “extremely impressed” with AMD’s strategy and its position in the AI ​​chip race. Specifically, Kumar is a big fan of the PC and server business as we enter the second half of 2024.

I think Kumar is right to be so bullish on the stock. Even though Nvidia is leaving behind most of its AI rivals, AMD seems to be keeping a good pace. By chasing Nvidia’s tail, AMD is also expected to move ahead of other AI chip companies in this race.

Corning (GLW)

Corning (NYSE:GLW) is best known for its Gorilla Glass product placed on the front of our smartphones. Many may not know that innovative and sustainable glass is not a big driver for Corning. And that’s no reason to own stocks. Instead, the fiber optic sector stands to benefit from the proliferation of AI data centers around the world.

Corning Optical’s Mike O’Day believes AI is a “game changer in the data center market,” also noting that “five times more optical connections” are needed for AI-driven data centers. This is a significant issue that investors may not fully appreciate, even after the parabolic spike seen since the start of the year.

At 20.9 times forward price-to-earnings (P/E), GLW stock may not yet have reached the full extent of the AI ​​tailwind. This could pose a long-term opportunity for investors as AI data centers look to thrive alongside chips.

As of the date of publication, Joey Frenette did not hold (neither directly nor indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publishing Guidelines.