After a March during which the Nasdaq Composite (^IXIC +2.02%) dipped briefly into correction territory, the tech-focused index has made a solid recovery. It has jumped by nearly 9% since March 30.
However, not all tech stocks that endured the slump participated in the rebound. This disparity gives investors an opportunity to buy some top artificial intelligence (AI) stocks at attractive valuations, especially considering that the adoption of this technology isn't slowing. Here are a couple of top AI names worth buying while they are still down.
Image source: Micron Technology.
Buying this memory chip leader is a no-brainer right now
Shares of Micron Technology (MU +4.04%) are down nearly 12% from the 52-week high they touched on March 18. However, the memory chip giant has been experiencing healthy growth driven by the ongoing AI infrastructure buildout. And demand for the data center hardware needed to power AI keeps rising.
The adoption of AI by businesses increased to 18.2% in mid-January, up from just 4.6% a couple of years ago, and for the next six months, the projected usage rate of AI by businesses is 22.1%. According to a forecast from PwC, AI will add 15 percentage points of growth to the global gross domestic product by 2035.
NASDAQ: MU
Key Data Points
In that context, Micron has continued to deliver stunning growth quarter after quarter, and it should keep doing so, as its memory chips -- vital components in AI data centers and other applications -- remain in high demand. Memory demand has been exceeding what manufacturers can supply, which has allowed them to boost prices significantly. That has resulted in phenomenal increases in Micron's revenue and earnings.
The good news for Micron stock investors is that memory prices are continuing to rise rapidly. Market research firm TrendForce is anticipating a 63% increase in dynamic random-access memory (DRAM) prices this month, along with a 75% spike in NAND flash pricing. Not surprisingly, analysts forecast an increase of almost 600% in Micron's earnings in the current fiscal year, followed by a 70% spike next year.
As Micron trades at just 17 times trailing earnings and an incredibly cheap 6 times forward earnings, investors are getting a steal of a deal on a stock that could soon regain its mojo due to its outstanding earnings growth potential.
An obvious use case for AI
Shares of SoundHound AI (SOUN +2.57%), meanwhile, are down by 17% in the past month. But that company, too, has been experiencing healthy growth.
We have already seen many businesses adopting AI for its potential to boost productivity and cut costs, and SoundHound AI's solutions are helping its clients achieve just that. Its voice AI solutions are already used in automotive, voice commerce, restaurants, retail, and financial services applications, among other areas. Importantly, SoundHound continues to add new customers at a nice clip. It signed more than 100 deals in the final quarter of 2025, which should allow it to sustain healthy growth following a 99% jump in revenue last year to $169 million.
Additionally, in the wake of the stock's 42% slide this year, investors can buy it at 16 times sales, well below its sales multiple of 27 at the end of 2025. This seems like a good deal considering the potential upside it could deliver over the long term.
