Why the Best Time to Buy Artificial Intelligence (AI) Growth Stocks Is When Everyone Else Is Rotating Out of Tech
The Nasdaq Composite entered a correction in late March but has since gained about 13% after easing tensions between Iran and the U.S., with AI stocks like Nvidia, Microsoft, Micron, and Amazon seeing lower valuations. Investors are jumping back into AI stocks, viewing AI as transformative technology that will produce long-term value.
The artificial intelligence (AI) megatrend drove a bull market for three years, with stocks like Nvidia surging. However, AI-related stocks lost ground in late 2025 and early 2026 due to high valuations and concerns about companies' spending on infrastructure and development. Investors rotated out of AI stocks and into more stable alternatives like value stocks and dividend stocks. The Iran war, which began on Feb. 28, added uncertainty to the markets, and the Nasdaq Composite entered a correction in late March, down about 11% year to date. Since April 1, the Nasdaq Composite has gained about 13% and is now up about 4.7% for the year. Top AI stocks like Nvidia, Microsoft, Micron, and Amazon saw their P/E ratios plummet to recent lows, giving investors an opportunity to invest at lower valuations. Investors are now jumping back into AI stocks, confident in their long-term value.
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