Key Points
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The stock market sell-off is driving growth investors away from artificial intelligence (AI) stocks.
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Despite falling share prices, several AI stocks maintain strong revenue and profitability profiles.
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Three members of the “Magnificent Seven” trade at attractive valuations amid market volatility.
The S&P 500 and Nasdaq Composite have dropped 3.7% and 4.7% respectively since February 1, 2026, largely due to investor uncertainty surrounding geopolitics, midterm elections, and inflation. Technology stocks, especially the “Magnificent Seven,” are among the biggest laggards in this downturn.
Key players in the AI sector include Nvidia, Amazon, and Meta Platforms. Nvidia holds 92% of the AI data center GPU market, with Q4 data center revenue rising 75% year-over-year, while Amazon’s stock has fallen 8.2% year-to-date despite strong financial results and plans to increase capital expenditures by 51%. Meta has also diversified its revenue streams with AI, boasting a $60 billion annual revenue run-rate in machine learning advertising tools.
