AI stocks across the board have been falling in the past week, and the bearishness surrounding AI stocks has only increased after Microsoft (NASDAQ:MSFT) started to cancel its data center leases. Wall Street is now scrutinizing AI stocks much more than usual, with AI stocks like Palantir (NASDAQ:PLTR) down almost 30% in the past five days. The Nasdaq Index has also broken below 19,000 points.
Nvidia (NASDAQ:NVDA) is likely the only thing that could cause a rebound in AI optimism if its earnings beat analyst expectations considerably. If that does not happen, the market could move into correction territory over the coming weeks.
That said, not all AI stocks are trading at nosebleed valuations right now. Many have declined well before the recent bout of uncertainty and they offer solid upside potential with relatively muted downside risk. Here are three such AI stocks to look into.
This post originally appeared at Money Morning.