Tech stocks have taken a deep dive, with the Nasdaq-100 Technology Sector down 10% in just five days. Fears of a recession triggered a major sell-off, with seven of the most valuable tech companies losing a combined $1 trillion in market value on Aug. 5.

As a result, now is an excellent time to bulk up your portfolio with companies active in lucrative fields like artificial intelligence (AI). Despite the market downturn, AI remains a sector with massive growth potential. Data from Grand View Research shows the market hit $197 billion last year. Yet, that figure is expected to reach nearly $2 trillion by the end of the decade, expanding at a compound annual rate of 37%.

In terms of the companies powering much of the industry, it's hard to go wrong with chip stocks. Nvidia (NASDAQ: NVDA) and (NASDAQ: INTC) are compelling options, especially after a sell-off. Nvidia designs the chips used by the majority of AI developers. Intel is building the world's largest AI chip plant in Ohio as it seeks to retake a position as a top manufacturer.

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Source Fool.com