The artificial intelligence (AI) sell-off has gone too far. These are the stocks I would buy before the market finds out

Artificial intelligence (AI) stocks have lost their luster in recent months, which seems surprising given that companies in this sector are reporting strong growth quarter after quarter.

The poor performance of AI stocks explains why the technology is concentrating Nasdaq Composite Over the past three months, the index has fallen by 11%. The war in the Middle East, the increasing likelihood of a recession and higher fuel prices have eroded investor confidence in the stock market this year, and AI stocks have suffered.

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However, it’s worth looking past the noise. AI companies continue to grow at a tremendous pace, driven by heavy infrastructure investments in data centers and customer adoption of this technology. Moreover, their valuations are now relatively cheaper due to the sell-off. With AI expected to contribute as much as $22.3 trillion to the global economy by 2030, I would view the recent pullback in AI stocks as a buying opportunity, according to IDC.

Here are some of the top names in this sector that I would consider buying before the market starts rewarding their solid growth.

Shares of Snowflake (NYSE: SNOW) And Palantir Technologies (NASDAQ:PLTR) have fallen by 32% and 24% respectively over the past three months. However, both companies benefit from the rapid adoption of their AI software solutions.

Snowflake, a cloud-based data platform provider that traditionally provided data storage and analytics solutions, offers multiple AI solutions to help customers get more from their data. It has been integrating AI into its data cloud platform for the past three years, allowing customers to build and deploy AI applications using their own data. Additionally, Snowflake’s AI agents help improve customers’ decision-making by analyzing their data and making suggestions.

Unsurprisingly, the company has witnessed a solid increase in adoption of its AI products. CEO Sridhar Ramaswamy noted the following during the February earnings call:

The key to our growth is the strength and momentum around our AI products. This quarter, we achieved the largest consecutive increase in accounts using AI, bringing the total to over 9,100 accounts. And in just three months, Snowflake Intelligence has scaled from an emerging offering to an essential capability for more than 2,500 accounts, nearly doubling quarter-over-quarter.

The increasing adoption of AI translates into healthy growth for Snowflake. It ended fiscal 2026 (which ended January 31, 2026) with product revenue up 29% to $4.47 billion. Even better, remaining performance obligations (RPO), the total value of contracts remaining to be fulfilled at the end of the quarter, rose at a much stronger pace of 42% to $9.77 billion.

This positions Snowflake to exceed product revenue expectations of $5.66 billion for fiscal year 2027, up 27% from the prior year. Even analysts expect Snowflake’s growth to remain robust:

With shares currently trading at 12x sales, it would be a good time to buy Snowflake before it gets its mojo back.

Meanwhile, Palantir’s expensive valuation continues to weigh on the stock. It trades at 116 times forward earnings and 86 times sales, despite the recent pullback. However, Palantir doesn’t seem expensive when you consider its growth and prospects.

According to market research firm Technavio, the market for AI software platforms in which Palantir operates will grow by 40% annually until 2030. The company adds that there is a $100 billion opportunity in this area over the next five years.

Palantir is one of the best ways to take advantage of this market. The company’s solid improvements in its customer base and ability to expand existing customer contracts have led to strong revenue and profit growth. The company’s revenue rose 70% to $1.4 billion in the fourth quarter of 2025, along with a 79% year-over-year increase in adjusted earnings to $0.25 per share.

But what’s worth noting is that Palantir signed a record $4.3 billion in new contracts this quarter, up 138% from the previous year. The fact that Palantir’s contract value grew three times as fast as revenue last quarter suggests it can maintain its stellar growth momentum. Not surprisingly, analysts expect sales to double in just two years (based on 2026 revenue estimates).

Palantir shares could justify their valuation and start rising again if they convert their significant backlog into revenue. Therefore, growth-oriented investors will do well to buy the dip.

Marvell technology (NASDAQ:MRVL) may not be as well known as other AI chip designers, but it is slowly becoming a major player in this market. The stock shot up noticeably in March after the company reported better-than-expected results and impressive guidance.

Marvell designs custom AI processors that are in high demand among hyperscalers. Bloomberg estimates that shipments of custom AI processors could increase 21% annually through 2033. Marvell is well positioned to capitalize on this opportunity, as it designs custom processors for Amazon And Microsoftaccording to Bloomberg.

However, Marvell’s AI customer base is rapidly expanding, with the company bringing more hyperscalers into its fold. This translates into tremendous earnings growth for Marvell. Operating income rose nearly 81% to $2.84 per share in fiscal 2026 (ending January 31, 2026). The healthy prospects of the custom AI processor market indicate why net growth will take off.

Marvell’s impressive earnings growth could send the stock soaring. Therefore, it’s worth buying the stock hand over fist, as it currently trades at just 23 times forward earnings.

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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends Amazon, Marvell Technology, Microsoft, Palantir Technologies, and Snowflake. The Motley Fool has a disclosure policy.

The artificial intelligence (AI) sell-off has gone too far. These Are the Stocks I’d Buy Before the Market Finds Out was originally published by The Motley Fool