3 Easy AI Stocks to Buy During the Stock Market Downturn

Artificial intelligence stocks have been major drivers of the bull market since the end of 2022. However, they have also experienced significant losses in the recent market sell-off.

Not all AI-fueled companies will create lasting wealth for investors, and some may continue to decline in the long run. Investing in top companies with sustainable competitive advantages across multiple areas should yield excellent returns for shareholders. Buying these stocks at a discounted price during market downturns, like the recent one, can further enhance your investment.

Here are three top artificial intelligence stocks to consider buying during the current market sell-off:

1. Amazon

Amazon (NASDAQ: AMZN) is a leading public cloud provider crucial for AI training and development. Despite facing competition from other hyperscale cloud providers like Microsoft (NASDAQ: MSFT), Amazon has maintained its position. Amazon Web Services, its cloud platform, saw a 19% revenue growth in the last quarter.

Amazon is not just a cloud computing company; it dominates e-commerce and benefits from its Prime membership ecosystem. Its Prime membership attracts more customers and merchants to its marketplace, leading to increased sales and profits. Furthermore, Amazon is a significant player in digital advertising, generating high-margin revenue.

Amazon continues to invest in AI and has achieved substantial free cash flow generation. With its strong position in various sectors, Amazon’s shares are attractive, especially considering its high free cash flow yield.

2. Microsoft

Microsoft is a rapidly growing hyperscale cloud provider, with Azure experiencing a 29% growth last quarter. Despite recent disappointments, Microsoft expects Azure revenue to accelerate in the second half of the year.

Microsoft has made significant investments in AI, including partnerships and consumer-facing AI services. Its strong growth trajectory and long-term potential justify its premium valuation.

3. Adobe

Adobe (NASDAQ: ADBE) is renowned for its creative software suite and has introduced new AI features powered by its Firefly model. These features have driven user growth and increased revenue for Adobe.