Three AI Stocks to Watch on a Market Dip: Palantir, Nvidia, and Microsoft

Three top AI stocks to consider on a dip include Palantir Technologies, Nvidia, and Microsoft. Palantir's AI-powered platform has a huge opportunity, while Nvidia remains the king of AI infrastructure. Microsoft has been growing its cloud computing revenue quickly. Any market pullback could be a great buying opportunity for these stocks.

In the rapidly evolving landscape of artificial intelligence (AI), several companies have emerged as leaders in the field. Among them, Palantir Technologies (PLTR), Nvidia (NVDA), and Microsoft (MSFT) stand out as potential investment opportunities, especially during market pullbacks. This article explores the key attributes of these three AI stocks and why they could be attractive to investors seeking to capitalize on a dip.

Palantir Technologies

Palantir Technologies has been making significant strides in the AI sector, with its AI-powered platform demonstrating substantial growth opportunities. The company's Artificial Intelligence Platform (AIP) leverages AI models to solve real-world problems, making AI more practical and useful for various industries. In the first quarter of 2025, Palantir posted its seventh consecutive period of accelerating growth, with revenue up 39% [3]. The U.S. commercial segment, which saw sales jump 71%, and the value of future deals soaring 127%, are key drivers of this growth. Additionally, the company's largest customer, the U.S. government, has been embracing AI to enhance efficiency, contributing to a 45% increase in government revenue last quarter [3]. Palantir's recent deal with NATO further expands its international reach, providing three potential growth engines: domestic commercial enterprises, the U.S. government, and the international public sector.

Nvidia

Nvidia remains the king of AI infrastructure, providing the hardware and software necessary for AI development. The company's data center and GPU businesses have been growing rapidly, driven by increasing demand for AI and machine learning capabilities. In the first quarter of 2025, Nvidia reported revenue growth of 25% year-over-year, with strong performance across its data center and gaming segments [3]. The company's leadership in AI infrastructure positions it well to benefit from the continued growth of AI applications.

Microsoft

Microsoft has been growing its cloud computing revenue quickly, with Azure becoming a key driver of the company's growth. The company's AI capabilities, including its Azure AI services, have been gaining traction in the market. In the first quarter of 2025, Microsoft reported a 30% increase in commercial cloud revenue year-over-year, driven by strong demand for Azure services [3]. Microsoft's strategic investments in AI and its broad ecosystem of products and services make it a strong contender in the AI space.

Conclusion

While Palantir, Nvidia, and Microsoft have shown impressive growth and have strong positions in the AI market, it is essential for investors to consider their individual risk tolerance and investment goals. Any market dip could present a buying opportunity for these stocks, but it is crucial to conduct thorough research and make informed decisions. As the AI sector continues to evolve, these companies are well-positioned to capitalize on the growing demand for AI solutions.

References

[1] https://www.fool.com/investing/2025/07/19/palantir-just-hit-a-record-high-whats-the-smart-mo/
[2] https://www.ainvest.com/news/palantir-technologies-expands-ai-solutions-public-safety-clinical-trials-2507/
[3] https://www.theglobeandmail.com/investing/markets/stocks/PLTR/pressreleases/33510687/3-no-brainer-artificial-intelligence-ai-stocks-to-buy-on-a-dip/