The AI stock correction has produced compelling prices for many stocks, including these three picks.
The AI stock correction has produced compelling prices for many stocks, including these three picks.
The past few weeks have been tough for many artificial intelligence (AI) investors. A hot inflation report, AI financing concerns, and Chinese memory chips are some of the headwinds that have stalled the rally.
However, a few bad weeks don't justify exiting positions. In fact, these are the exact times when contrarian investors load up on positions and get greedy when others are fearful.
These three AI stocks below have endured steep price cuts even though their fundamentals continue to improve.
This memory chipmaker is down by roughly 30% in less than one month, showing that the AI correction is even hitting big-name companies. Perhaps the narrative will shift when Sandisk (SNDK -0.45%) reports earnings on Oct. 29, but there is already plenty to like about the stock.
Sandisk produces NAND flash memory products that are critical as AI models, agents, and inference require vast amounts of memory capacity. Without sufficient memory, these products stop working or experience significant drops in quality.
People have become accustomed to AI models like ChatGPT, Gemini, and Grok handling their questions and providing actionable information in ways that a basic search can't. All of the data centers powering AI tools need NAND flash products, like the ones Sandisk offers.
$1,365.00-$6.12 (-0.45%)
NASDAQ · As of 10:01 AM ET 10/20/26
While Sandisk isn't the only NAND flash memory provider, it's certainly the industry leader. That explains why Sandisk more than quadrupled its revenue year over year and authorized an additional $14 billion for stock buybacks. The dip comes at a good time for Sandisk's buyback program and for investors focused more on where the company is heading in five years than on what has happened to its stock price over the past month.
Averytin News Financial update.