Nasdaq Correction: 2 AI Stocks Down 26% and 46% to Buy Before They Soar, According to Wall Street

Nasdaq Correction: 2 AI Stocks Down 26% and 46% to Buy Before They Soar

The Nasdaq Composite (NASDAQINDEX: ^IXIC) has officially entered correction territory, trading more than 10% below its recent bull-market peak. While corrections often spark fear, they also create rare opportunities to buy high-potential stocks at discounted prices. Wall Street analysts are now spotlighting two artificial intelligence (AI) leaders trading 26% and 46% below their highs—Nvidia (NVDA) and C3.ai (AI)—as top buys with explosive upside potential.

Understanding the Nasdaq Correction: A Buying Opportunity in Disguise

A market correction is defined as a 10%–20% decline from recent highs. While painful in the short term, corrections historically reset valuations, weed out speculation, and set the stage for sustainable rebounds. The Nasdaq’s current dip follows a scorching 2023 rally fueled by AI optimism, with the index climbing nearly 40% before pulling back.

Why AI Stocks Are Resilient Long-Term Plays
The AI sector is no passing trend. Grand View Research projects the global AI market to grow at a 37.3% CAGR from 2023 to 2030, reaching $1.8 trillion. Companies leading in AI hardware, software, and infrastructure are positioned to dominate the next decade—making this correction a prime time to build positions.

Stock #1: Nvidia (NVDA) – Down 26% | Wall Street Sees 60% Upside

Company Overview
Nvidia is the undisputed king of AI hardware. Its graphics processing units (GPUs) power data centers, generative AI platforms like ChatGPT, and autonomous systems. Despite a 26% pullback from its 2023 high, Nvidia’s long-term growth narrative remains intact.

Why the Stock Fell

• Valuation Concerns: NVDA’s 2023 rally pushed its P/E ratio above 220, spooking short-term traders.
• Supply Chain Risks: Fears of slowed GPU demand in China due to U.S. export restrictions.

Growth Catalysts

• Data Center Dominance: Nvidia controls over 90% of the AI GPU market, with Q2 2024 data center revenue hitting $10.3 billion (+141% YoY).
• Software Expansion: Its CUDA platform and AI Enterprise Suite create recurring revenue streams.
• Generative AI Boom: Demand for Hopper and upcoming Blackwell GPUs could drive 50%+ annual earnings growth through 2025.

Wall Street’s Take
The median analyst target price of **$175\ast \ast implies\ast \ast 60$109). Bank of America calls NVDA a “top pick,” citing “secular AI growth and limited competition.”

Stock #2: C3.ai (AI) – Down 46% | A Hidden Gem in Enterprise AI

Company Overview
C3.ai delivers enterprise-grade AI solutions for sectors like manufacturing, energy, and defense. Its stock has plummeted 46% from 2023 highs due to slower-than-expected adoption, but Wall Street believes the selloff is overdone.

Why the Stock Fell

• Subscription Transition: Shift from upfront licenses to SaaS models pressured short-term revenue.
• High Cash Burn: $70M+ quarterly losses raised concerns about profitability timelines.

Growth Catalysts

1. Government Partnerships: Recent contracts with the U.S. Department of Defense and Shell highlight its niche in mission-critical AI.
2. Generative AI Suite: C3 Generative AI for Enterprise allows businesses to deploy custom LLMs securely—a $10B+ market opportunity.
3. Rule of 40 Potential: CEO Thomas Siebel forecasts profitability by Q4 2024, with revenue growth accelerating to 30%+ as adoption scales.

Why These AI Stocks Could Skyrocket Post-Correction

1. Irreplaceable Moats

• Nvidia: Chip design expertise and CUDA ecosystem create insurmountable barriers to entry.
• C3.ai: Proprietary AI platforms for regulated industries (e.g., defense) reduce competition.

2. TAM Expansion

• NVDA’s data center TAM could hit 300Bby2027(vs.300Bby2027(vs.30B in 2023).
• C3.ai’s focus on federal and industrial sectors taps into a $600B+ enterprise AI market.

3. Valuation Reset = Margin of Safety
Both stocks trade at 12–18 month lows, aligning valuations with realistic growth trajectories.

Risks to Consider

• Macro Pressures: Prolonged high rates could delay IT spending.
• Execution Risks: C3.ai must prove its SaaS transition can accelerate growth.

Conclusion: Time to Buy the Dip

The Nasdaq correction offers a rare chance to invest in AI’s future leaders at fire-sale prices. Nvidia’s hardware supremacy and C3.ai’s enterprise software niche position them to outperform as AI adoption accelerates. With Wall Street forecasting 60–85% upside, these stocks could deliver life-changing returns for patient investors.

Key Takeaway: Market corrections separate speculative noise from transformational opportunities. Don’t miss this window to own two AI titans poised to redefine industries.