3 Genius Artificial Intelligence (AI) Stocks to Buy Amidst the Selloff

Keithen Drury, The Motley FoolThu, July 9, 2026 at 1:50 PM UTC

0

Key Points -

Nvidia could double its revenue next quarter.

Taiwan Semiconductor is a key part of the AI build-out.

Broadcom has new products entering production.

10 stocks we like better than Nvidia ›

&&

While some segments of the artificial intelligence (AI) investing trend have done well over the past few months, others haven't. However, most of these companies are still doing all right; it's just that market sentiment has shifted. The thing about market sentiment is that it always comes back around eventually, especially if a company continues to report stellar growth.

I think that's the case with a handful of companies, and with a bit of an AI sell-off going on, investors would be smart to load up on these three established players with major upside potential.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

&&

Image source: Getty Images.

1. Nvidia

At the top of my list is Nvidia(NASDAQ: NVDA). This may seem like a boring AI pick, but sometimes these are the best stocks to invest in. Nvidia has led the AI build-out for the last three years, and is doing it again despite the stock not having a great year. Nvidia is down around 17% from its all-time high, but I could see it rocketing back up over the next few months as companies report Q2 earnings.

Nvidia won't report earnings until August, but when it does, Wall Street analysts expect a record-setting quarter. On average, they expect 96% revenue growth to $91.7 billion. Nvidia tends to outperform analysts' expectations, so don't be surprised to see a growth rate above 100%.

Demand for Nvidia GPUs (graphics processing units) is off the charts, and it may not let up for some time, especially if Nvidia's projection of $3 trillion to $4 trillion in global annual data center capital expenditures by 2030 proves true. With shares trading for an attractive 21.7 times forward earnings, now is a perfect time to load up on Nvidia stock.

2. Taiwan Semiconductor

Next up is Taiwan Semiconductor Manufacturing(NYSE: TSM), Nvidia's primary logic chip fabricator. Taiwan Semiconductor also supplies most of the companies Nvidia competes with, making it a great neutral investment in the AI realm. Essentially, as long as there is more spending on data center computing equipment, Taiwan Semiconductor is slated to see strong growth.

That sentiment has propelled Taiwan Semiconductor to be one of the best AI stock picks so far in 2026, rising more than 40% this year. It's down nearly 10% from its all-time high, so it's not nearly as much of a deal as the other two, but it's still a worthwhile AI stock pick.

Taiwan Semiconductor reports earnings on July 16, and Wall Street analysts expect about 35% revenue growth in New Taiwan Dollars. If it delivers an earnings beat, the stock could still go higher and drag some of its peers along with it.

Advertisement

3. Broadcom

Last is Broadcom(NASDAQ: AVGO), which is down the farthest of this trio. It has fallen around 25% since early June when it reported its Q2 earnings. The reason for its tumble was silly: Wall Street wanted it to increase its 2027 revenue guidance for custom AI chips from its already lofty $100 billion target. Broadcom didn't budget, and the stock sold off.

The growth that Broadcom expects from its AI semiconductor division is impressive and will likely blow away this $100 billion figure in due time. However, investors need to be patient, but only for a little while, as several of its core clients' custom AI chips are starting to reach the production phase.

This will be a huge growth catalyst for Broadcom, and Wall Street analysts expect its fiscal 2027 revenue to top $172 billion -- nearly a triple in two years from $64 billion at the end of its fiscal 2025. That's huge growth in a short time frame, and will lead to major gains for the stock. However, not all of that is priced into its stock, and it actually looks quite attractive (alongside the rest of the trio) when next year's earnings projections are used.

NVDA PE Ratio (Forward 1y) data by YCharts

Now is the perfect time to load up on Broadcom stock and the rest of this trio, as they won't stay beaten down for long.

Should you buy stock in Nvidia right now?

Before you buy stock in Nvidia, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $407,651!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,252,823!*

Now, it’s worth noting Stock Advisor’s total average return is 922% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of July 9, 2026.

&&

Keithen Drury has positions in Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

Original Article on Source

Source: “AOL Money”