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If There Is a Stock Market Crash, Here Are 2 Artificial Intelligence (AI) Stocks I Am Loading Up on

They could be attractive buys on the dip.

Stock market downturns often present opportunities for savvy investors to scoop up undervalued assets. Two artificial intelligence (AI) companies that may be attractive purchases during a market crash are Space Exploration Technologies (SPCX) and Intel (INTC).

SpaceX is revolutionizing space travel with its reusable rockets, including the next-gen Starship, which could dramatically reduce launch costs. The company's Starlink business is already profitable, providing satellite internet. Additionally, SpaceX offers AI computing services to major players like Alphabet and Anthropic. Revenue from AI-related services surged 247.5% year-over-year in the second quarter.

Despite strong recent performance, SpaceX's high valuation (market cap of $1.9 trillion, P/S ratio of 65) and lack of profitability are concerning. However, a market crash could significantly discount the stock.

Intel is benefiting from robust demand for its server CPUs, which are increasingly needed for AI applications. The company sees a potential shift in the GPU-to-CPU ratio towards more balanced AI agents. Intel's forward earnings multiple of 72.5x, while higher, still lags significantly behind the IT sector average of 20.9x. While Intel faces competition and manufacturing hurdles, its AI-related prospects remain promising.

Both companies could be prime targets if the market crashes, as their AI segments present strong growth potential. However, investors should carefully assess each firm's valuation and risks before making investment decisions.

Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Also reported by 2 other outlets

Read the original at fool.com →

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