2 Artificial Intelligence (AI) Stocks That Could Go Parabolic

Technology stocks lost some of their luster on the market as heightened expectations about the proliferation of artificial intelligence (AI) technology put companies in this sector under pressure to deliver outsized growth each quarter.

Shares of Nvidia, for instance, retreated over the past couple of weeks despite the GPU leader delivering better-than-expected quarterly results and guidance that exceeded Wall Street's estimates. However, a closer look at the prospects of the AI market indicates that the tech sector's slide may not last for long. After all, Bloomberg expects the generative AI market to generate $1.3 trillion in annual revenue in 2032, with a compound annual growth rate of 42% through the end of that period.

So, it won't be surprising to see AI stocks get back into the good graces of investors soon, as they could continue to deliver healthy growth for a long time. That's why it would be a good idea for investors to buy shares of (NASDAQ: AVGO) and Arm Holdings (NASDAQ: ARM), both of which have pulled back significantly since the beginning of July.

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Source Fool.com