These 3 AI Stocks Are Way Off Their Highs. Is the Pullback a Buying Opportunity?

Vertiv, Applied Optoelectronics, and Innodata have all seen their stock prices fall below their 2026 peaks in September, despite strong growth in their operations. While the pullbacks do not make them identical investment opportunities, they may present buying chances. Vertiv Holdings Co. posted a 24% rise in sales to $3.27 billion in Q2, with its operating margin expanding by 410 basis points to 22.6% and free cash flow reaching $925 million.

Applied Optoelectronics reported record revenue of $191.9 million and an 800G volume that doubled from Q1. Innodata Inc. grew its revenue by 58% to $92.1 million and adjusted EBITDA rose by 92% to $25.4 million. Each company faces different risks, such as timing, supply congestion, and long-duration demand expectations, which could cause further drops in their stock prices.

The pullback in their stock prices presents entry points, but investors should focus on operating evidence, such as order conversion, gross-margin durability, customer concentration, and diluted share growth, rather than relying solely on their distance from their highs.