2 Top Artificial Intelligence (AI) Stocks to Buy On the Dip Amid Nasdaq Selloff

Wall Street sold all things artificial intelligence (AI) over the last week. The risk-off pivot hit everything from soaring AI darlings AppLovin and Palantir to nuclear energy giant Constellation Energy and Bitcoin.

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A confluence of headlines and nervous energy heading into Nvidia’s earnings release sparked a wave of profit-taking on soaring stocks.

Wall Street was locking in big winners sooner or later considering that AI stocks such as AppLovin and Palantir soared more than 200% between November 4 and February 18.

The Nasdaq’s afternoon tumble Thursday pushed it to its 200-day moving average for the first time since the summer. The tech-heavy index is also at its most oversold RSI levels since August, and CNN’s Fear & Greed Index (a contrarian stock market indicator) sank from Neutral (47) a week ago to Extreme Fear (22).

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No one knows what’s right around the corner. But traders and long-term investors might start buying at the 200-day especially since Nvidia’s report and guidance highlighted bullish tech earnings growth in 2025 and beyond.

It might be time to start getting greedy while others are fearful. 

Today’s Full Court Finance at Zacks dives into two artificial intelligence stocks —Vertiv and ServiceNow—to buy at discounts amid the AI and momentum stock selloff.

ServiceNow NOW automates workflows across IT, HR, and beyond, serving customers in every area of the economy. The digital workflow services and solutions company’s expansion into AI boosted its appeal to its enterprise customers that must keep up with technological and AI innovation.

ServiceNow boasts that it is the AI platform for business transformation. NOW’s expansion over the last decade highlights its ability to attract and keep customers.

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ServiceNow’s critical offerings and successful subscription model (97% of revenue) helped it grow its revenue by 20% or more over the last decade, including 22% growth in 2024.  

ServiceNow’s earnings estimates dipped slightly after its Q4 release on January 29, contributing to NOW’s drop. Still, the tech firm is projected to grow its revenue by 19% in 2025 and 2026 to boost its earnings by 17% and 20%, respectively.

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NOW shares climbed roughly 1,150% in the last 10 years to nearly quadruple the Zacks Tech Sector.

ServiceNow has cooled off in the last three years and its 22% drop from its January highs has it neck and neck with tech in the past 12 months. NOW is finding buyers at its 200-day moving average, with its 50-week the next line of support.