2 Underperforming AI Stocks to Buy Now as Nvidia’s Rally Stalls

Artificial intelligence (AI) could be among the most consequential and disruptive technologies in recent times. While Nvidia (NVDA) has been at the forefront of the rally in AI stocks, and was the best-performing S&P 500 Index ($SPX) component last year, its rally has stalled over the last month. The stock is, in fact, in the correction zone and is down over 10% from its 52-week highs.

While Nvidia is still the second-best performing S&P 500 name this year, some AI-related stocks have underperformed the markets in 2024. These include Tesla (TSLA) and Apple (AAPL)  – both of which are AI plays in their own right, but are in the red this year and have underperformed the markets by a wide margin. Aside from these two companies, all of the other “Magnificent 7” stocks are in the green for 2024, and have continued their rally from where they left off last year.