"Nasdaq Correction: 3 AI Stocks That Could Make You a Millionaire"

The Nasdaq Composite has officially entered correction territory, falling more than 10% from its latest peak in December 2024. This downturn has been driven by investor concerns about the economy and the potential impact of President Donald Trump's tariffs on imports from Canada, China, and Mexico. While this may seem like a bleak time for investors, it also presents a unique opportunity to snatch up some of the most promising AI stocks at bargain prices. Let's dive into three AI stocks that could make you a millionaire in the long run.



1. nvidia (NASDAQ: NVDA)

Nvidia has long been the king of the AI chip market, holding an 80% share. The company's graphics processing units (GPUs) are the go-to choice for tech giants due to their high performance. Nvidia's latest release, the Blackwell architecture, saw demand exceed supply, highlighting its strong market position. This dominance has translated into solid growth for Nvidia, with quarterly revenue rising 78% to a record $39 billion and full-year revenue soaring 114% to a record $130 billion. Nvidia's focus on innovation, with a pledge to update its GPUs annually, makes it difficult for competitors to gain significant market share. As a result, Nvidia trades at 25x forward earnings estimates, down from 50x earlier this year, making it a relatively cheap buy for long-term investors.

2. Advanced Micro Devices (NASDAQ: AMD)

AMD is the second-biggest player in the AI chip market, with about a 10% market share. The company makes GPUs to power AI workloads and is known for offering solid performance at a reasonable price. This is great because it gives cost-conscious customers a quality option, which could result in more and more orders as AI chip needs grow. Even though big tech companies, such as Microsoft, flock to Nvidia for GPUs, they also are customers of AMD. Microsoft, for example, uses AMD's flagship MI300X GPUs to drive several GPT 4-based Copilot services. AMD aims to keep up with Nvidia by also launching innovations on an annual basis. Even though Nvidia is likely to stay well ahead, AMD still could generate massive growth by applying this strategy. AMD called last year "transformative" for the company as it progressed in the AI market. In the fourth quarter, the company's data center revenue surged 69% to a record $3.9 billion; for the year, it soared 94% to a record $12.6 billion. Like Nvidia, AMD has seen its valuation tumble recently and offers an interesting buying opportunity. It now trades for 21x forward earnings estimates, down from more than 27x back in January.

3. Amazon (NASDAQ: AMZN)

Amazon is another company that's big on AI. The company's online marketplace has revolutionized retail, making it incredibly difficult for brick-and-mortar businesses to remain competitive when the tech giant offers fast delivery, even same-day delivery in many markets. With the use of robots to help drive efficiency and speed up its logistical operations, the company has been firmly entrenched in AI for many years. But there are many more opportunities on the horizon. The company has an upgraded Alexa+ assistant that utilizes AI, which Amazon is going to charge $19.99 per month to use (it will, however, be available to Prime members for free). It has also invested $8 billion into AI company Anthropic, which makes the Claude AI chatbot. AI is still a huge part of Amazon's growth strategy, and that isn't changing anytime soon. For a company like Amazon, which reported $33 billion in free cash flow in 2024, it has plenty of money at its disposal, which it can deploy toward opportunities in AI, making it a compelling investment for the long haul. It's a bit more expensive than Nvidia, trading at a forward P/E of 30, but it's still a great buy. There are many things to love about Amazon stock, as this growth beast is only going to get bigger in the future.



In conclusion, while the Nasdaq correction may seem like a time of uncertainty, it also presents a unique opportunity to invest in some of the most promising AI stocks at bargain prices. Nvidia, AMD, and Amazon are all well-positioned to navigate the current economic challenges and continue to grow in the long run. So, if you're looking to make a million, now might be the perfect time to invest in these AI giants.

Ask Aime: "Are Nvidia, AMD, and Amazon good buys for long-term investment?"