AI Sector Stock Pullback and Investment Opportunities
As of 2026, the Global X Artificial Intelligence & Technology ETF has decreased nearly 9% this year, prompting some analysts to suggest this may be an opportune time for investors to consider stocks like Nvidia (NASDAQ: NVDA) and Applied Digital (NASDAQ: APLD). Despite the decline, Nvidia reported a 73% revenue increase to $215.9 billion for fiscal 2026 and anticipates $78 billion for the current quarter, indicating strong demand for its chips.
Applied Digital is also positioned for growth, having secured $16 billion in 15-year lease contracts for data centers it is constructing in North Dakota and discussing plans for three additional campuses with a capacity of 900 megawatts. Analysts have set a 12-month price target of $43.50 for Applied Digital, reflecting a potential 69% increase from current levels.
