Stocks to buy

3 AI Stocks to Buy on the Dip: February 2024

Stock market corrections can present many long-term buying opportunities. Corporations in rapidly growing segments like artificial intelligence (AI) usually get hit the hardest by these market shifts.

Any dips can intimidate new investors, but experienced investors use these opportunities to load up on their favorite stocks. Lower prices can offer more potential and improve an investor’s margin of safety. 

If any of these AI stocks to buy dip, you may want to give them a closer look.

Supermicro (SMCI)

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Supermicro (NASDAQ:SMCI) has been a leader in the AI industry and has rewarded long-term investors. Shares are up by more than 700% over the past year and have 5-year gains that exceed 4,459%. 

Shares initially soared by over 10% after the company released an excellent earnings report. However, the equity couldn’t hold onto most of its gains. The firm proved it is growing at a rapid pace that resembles Nvidia’s (NASDAQ:NVDA) success in 2023. 

Any short-term weaknesses present long-term buying opportunities for a company at the center of a high-growth industry. Supermicro offers servers that can handle the intense workload of AI tools.

The company has achieved exceptional top-line and bottom-line growth that makes the valuation attractive. The stock currently trades at a 35-forward P/E ratio and has a net cash position of $350.03 million.

Supermicro has generated attractive returns and doesn’t look like it’s done just yet. The company should report exceptional growth rates over the next few quarters as AI gains more momentum and the firm has lower benchmarks to surpass.

Broadcom (AVGO)

Source: Sasima /

Broadcom (NASDAQ:AVGO) is a semiconductor and software giant that posts high profit margins while growing the top and bottom lines. Shares have marched 108% higher over the past year and are up 364% over the past five years.

Analysts are bullish on the stock, with 19 out of 20 rating it as a Buy. The other two analysts rated the stock as a Hold. The highest price target is $1,550, implying a 21.6% potential upside.

Broadcom’s well-publicized acquisition of VMware will give the company a better position for its software segment. While semiconductor chips — AI chips in particular — are the main focus, the company’s software business is also looking good. 

Broadcom CEO Hock Tan offered several remarks in the press release detailing the acquisition.

“Together we are well positioned to enable global enterprises to embrace private and hybrid cloud environments, making them more secure and resilient. Broadcom has a long track record of investing in the businesses we acquire to drive sustainable growth, and that will continue with VMware for the benefit of the stakeholders we serve.”

Broadcom has delivered impressive results to shareholders for many years. Investors have reasons to feel confident that Broadcom will find more potential within VMware and reward long-term investors.

Nvidia (NVDA)

Source: Evolf /

Nvidia’s market cap continues to soar. The company recently crossed the $1 trillion milestone, and it looks like it can exceed a $2 trillion market cap by the end of 2024. The stock currently has a $1.8 trillion market cap and a 34-forward P/E ratio.

The company’s GPU chips have generated more traction because of AI, but they have a deeper history. Nvidia claims to have invented GPU chips in 1999. Although other chipmakers produced similar chips, Nvidia popularized the term “GPU.”

These chips helped Nvidia establish a large presence in the gaming industry. Nvidia’s GPUs helped spur growth in the computer gaming market when they were introduced. More than two decades later, the company closed out Q3 FY24, generating $2.86 billion in revenue from its gaming segment. That figure represents an 81% year-over-year growth rate.

AI growth is the main driver of Nvidia’s earnings. However, the company isn’t AI or bust. Investors will get exposure to several high-growth business segments under the Nvidia umbrella.

On this date of publication, Marc Guberti held long positions in SMCI, AVGO, and NVDA. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Marc Guberti is a finance freelance writer at who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News & World Report, Benzinga, and Joy Wallet.

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