Nasdaq Stock Market Correction: 2 Stocks I Wouldn't Hesitate to Buy the Dip On (Hint: It's Not Nvidia)

Last week, the Nasdaq Composite index entered market correction territory, defined as a drop of 10% or more. While many AI stocks are down more than 10%, they remain risky investments due to potential AI-induced bear markets. Instead, investors should consider buying stocks not solely focused on AI.

One such stock is Remitly Global (RELY +7.39%), a platform for international remittances focused on the U.S. market. Remitly's business should remain relatively unaffected by a broad market drawdown or economic recession. The company's active customer base grew 17% year-over-year to 10.3 million, with revenue increasing 22% to $510 million in the last quarter.

Remitly is now working with large-value senders and business customers, which could offer durable relationships. The stock has fallen after Q3 earnings, despite revenue growth above 20%, and now trades at a cheap forward price-to-earnings ratio of 12.1.

Another potential buy is Amazon (AMZN +2.94%), the world's largest cloud computing provider. Amazon's cloud division, Amazon Web Services (AWS), grew revenue by 39% last quarter, but this growth is eroding free cash flow, which has become negative. If the AI infrastructure build-out slows down, Amazon could return to positive free cash flow while maintaining its lead in cloud computing.

The only downside might be slower AWS growth, but there's still durable demand from the cloud transition and growing worldwide demand for data center uses, which AWS could benefit from. Amazon's e-commerce business is also growing steadily with increasing margins. If the stock falls while earnings rise simultaneously, it could present a buying opportunity for the tech giant.