U.S. stocks have underperformed expectations in 2025. President Donald Trump's return to protectionist economic policies has placed significant pressure on leading tech companies, which have been the primary catalysts behind the S&P 500's (^GSPC 0.56%) remarkable performance since October 2022.
While short-term market volatility can be unsettling, it creates valuable opportunities to acquire tomorrow's market leaders at substantial discounts relative to their long-term potential.
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Artificial intelligence (AI) stocks exemplify this opportunity. Despite their explosive growth over the past two years, many high-performing AI companies have experienced sharp corrections since early 2025. Here are two AI stocks I continue to accumulate during downturns and intend to hold for the long haul.
Archer soars beyond traditional aviation
Despite Archer Aviation (ACHR 4.44%) shares falling nearly 17% year to date, this electric vertical takeoff and landing company represents a compelling opportunity at its current $4.4 billion market cap. Archer has emerged as an AI stock through strategic partnerships with Palantir Technologies and Anduril Industries, leveraging Palantir's Foundry and Artificial Intelligence Platform (aka AIP) to develop next-generation aviation systems for air traffic control, movement control, and route planning.
NYSE: ACHR
Key Data Points
With commercial potential spanning tens of billions across defense and commercial aviation markets, Archer has already secured Abu Dhabi Aviation as the first customer for its "Launch Edition" commercialization program. The company is also positioned to capture defense contracts through its strategic partnership with Anduril Industries, which specializes in autonomous systems for military applications.
With over $1 billion in liquidity, Archer sports one of the strongest balance sheets in its industry, providing ample runway to execute its AI-enabled vision for the future of flight.
What's the bottom line? I'm accumulating Archer stock because it sits at the convergence of two explosive growth markets, AI and electric aviation. The company also has the capital strength and technology partnerships needed to become a dominant player in this emerging transportation space, which analysts project could reach $1 trillion by 2040.
All told, I think this combination of established partnerships, strong financing, and a massive addressable market creates a compelling risk-to-reward ratio for long-term investors.
Autonomous innovation in a bot
Despite a steep 46% year-to-date decline, Serve Robotics (SERV 1.63%) is revolutionizing last-mile delivery with its AI-powered autonomous sidewalk robots. The company's remarkable 773% year-over-year revenue growth to $1.8 million in 2024 showcases its accelerating market adoption. Additionally, Serve is expanding its operational footprint beyond Los Angeles into Miami and major markets like Dallas-Fort Worth and Atlanta.
NASDAQ: SERV
Key Data Points
What's more, Serve has completed the design of its third-generation robots featuring significantly enhanced capabilities, including twice the speed and range plus 5x more AI computing power at approximately 65% lower manufacturing costs than previous models.
Through partnerships with Magna International and Shake Shack, Serve has expanded its reach to over 1,000 restaurants and 300,000 households. With $123 million cash at year-end 2024 plus an additional $80 million raised in early 2025, Serve possesses the financial strength to execute its ambitious plan of deploying 2,000 robots across the U.S. by year-end 2025.
I'm buying this beaten-down AI innovator because of its exponential revenue-growth potential, combined with plummeting unit costs. This situation creates a clear path to profitability as its robot fleet scales. Moreover, this favorable setup could deliver sizable returns once the company's robots become established within the last-mile delivery ecosystem across the United States.
A balancing act of risk and reward
While these AI innovators offer significant upside potential, investors must remain mindful of the risks. Archer Aviation faces stringent regulatory hurdles on its path to widespread commercial certification, while Serve Robotics must demonstrate its ability to scale efficiently across diverse urban environments. Both companies generate minimal revenue relative to their market valuations and will likely require additional capital, despite their strong cash positions.
However, these concerns seem to be already priced into their modest valuations -- at least relative to their long-term commercial potential. As a result, I think the market's short-term aversion to growth stocks has created a compelling entry point for investors willing to endure volatility while these emerging tech players execute their ambitious roadmaps.
That's exactly how I'm approaching this period of uncertainty -- using it as an opportunity to accumulate shares in both of these revolutionary AI companies.
