5 AI Giants to Buy on the Dip Amid Huge Short-Term Upside Potential

Market Overview - U.S. stock markets have experienced significant volatility, with major indexes like the Dow, S&P 500, and Nasdaq Composite in negative territory year to date, and the S&P 500 and Nasdaq in correction zones [1] - The mid-cap S&P 400 is also in the red, while the small-cap Russell 2000 is in bear territory year to date [1] Technology Sector Insights - The technology sector, particularly AI infrastructure developers, has faced the most challenges, yet the AI frenzy continues as major tech companies invest heavily in AI [2] - Recent stock price declines have made several AI infrastructure stocks attractive for investment [2] Stock Recommendations - Five AI infrastructure stocks with favorable Zacks Rank and short-term price upside potential include NVIDIA Corp. (NVDA), Broadcom Inc. (AVGO), Arista Networks Inc. (ANET), Marvell Technology Inc. (MRVL), and Atlassian Corp. (TEAM) [3][4] NVIDIA Corp. (NVDA) - NVIDIA reported strong fiscal Q4 2025 earnings and provided optimistic guidance for Q1 fiscal 2026, driven by high demand for AI-powered GPUs [6][7] - Expected revenue and earnings growth rates for the current year are 50.9% and 46.8%, respectively, with a long-term growth rate of 25.7% [9] - Currently trading at a forward P/E of 27.73X, with a return on equity (ROE) of 112.33% [10] Broadcom Inc. (AVGO) - Broadcom's AI revenues surged 220% year over year to $12.2 billion, constituting 41% of semiconductor revenues [12] - Expected revenue and earnings growth rates for the current year are 20.3% and 34.7%, respectively, with a long-term growth rate of 19% [16] - Currently trading at a forward P/E of 22.4% discount to its 52-week high [17] Arista Networks Inc. (ANET) - Arista Networks benefits from strong demand for its scalable cloud networking solutions, which enhance cloud architecture [18][19] - Expected revenue and earnings growth rates for the current year are 18.1% and 12.8%, respectively, with a long-term growth rate of 14.4% [20] - Currently trading at a 37.4% discount to its 52-week high [22] Marvell Technology Inc. (MRVL) - Marvell Technology's data center revenues increased 98% year over year, driven by AI demand for PAM products [23] - Expected revenue and earnings growth rates for the current year are 43.6% and 75.2%, respectively, with a long-term growth rate of 42.9% [26] - Currently trading at a 46.1% discount to its 52-week high [26] Atlassian Corp. (TEAM) - Atlassian is experiencing rising demand for remote working tools, with a 25X year-over-year increase in AI interactions [28] - Expected revenue and earnings growth rates for the current year are 18.6% and 17.4%, respectively, with a long-term growth rate of 20% [31] - Currently trading at a 33% discount to its 52-week high [32]