3 Forgotten AI Stocks That Should Rebound From Their Corrections

AI stocks have garnered significant investor interest due to their impressive returns compared to the S&P 500. However, some AI-focused companies, despite their growth, have been overlooked recently and are down over 30% from their highs. Three such stocks worth watching are Penguin Solutions, MaxLinear, and Aehr Test Systems.

Penguin Solutions, a memory-focused company, has been developing technologies used in AI infrastructure. Its Compute Express Link (CXL) technology reduces costs by improving AI inference performance and reducing high-bandwidth memory (HBM) chips' storage needs. The company's Integrated Memory segment more than doubled revenue year-over-year and surged 60% sequentially in fiscal 2026 Q3. As this segment's revenue grows, Penguin Solutions' overall sales should increase.

MaxLinear has more than quadrupled its stock price this year, but it remains down more than 30% from its all-time high. The company experienced a 55% year-over-year revenue jump in Q2 due to strong demand for its AI data center products. CEO Kishore Seendripu highlighted the robust growth in its optical AI data center business, which more than doubled year-over-year. MaxLinear's Q3 guidance excited investors, with $215 million in expected revenue, representing a 27% sequential improvement.

Aehr Test Systems has delivered a nearly 5x return this year and is down more than 30% from its all-time high. Despite its small revenue, Aehr makes a significant impact in the semiconductor industry by providing test and burn-in solutions for devices. The company anticipates a 3x year-over-year growth in fiscal 2027 revenue, driven by the increasing demand for semiconductors, including AI chips, CPUs, memory chips, and network processors.