⭐️ Buying The AI Dip; 3 Stocks To Consider
3 Stocks To Consider Depending On your Risk Tolerance
[Jack’s note: Another amazing, free, non-sponsored Masterclass from my buddy James Foord. I truly recommend his Substack!]
A reminder of what is happening this week at The Stock Insider and the last few days to get a lifetime membership. Ever:
TL;DR
AI is shaking up everything—from how we shop to how businesses operate behind the scenes. While some names dominate headlines, the real opportunities might be hiding in plain sight, especially after this big selloff-
In this piece, we break down three AI stocks you need to have on your radar: a household name turning into a quiet cash machine, a once-speculative software play growing into an enterprise heavyweight, and a bold new infrastructure bet with sky-high potential. Whether you're after steady gains or asymmetric upside, there's something here for every investor.
Expect to Learn:
Why a tech giant you already know may be the lowest-risk AI play in the market
How a misunderstood software company is becoming a real-world AI compounder
Where the smart money could be going after a massive AI sell-off
Which emerging name might quietly triple in 2025 (and why it's not on most radars)
Amazon AMZN -2.79%↓ The Sleeper Giant of the AI Era (Low Risk)
I’ve long been a fan of Google—but when it comes to high-conviction tech plays right now, Amazon is edging it out. Why? Valuation, growth potential, and a quiet revolution happening under the hood.
Let’s start with valuation. Amazon is trading at a forward P/E of just 36—a rare discount for a company this dominant. At the same time, its margins are climbing and show no sign of slowing. AI and robotics are driving a sea change in operations, and Amazon is poised to ride that wave better than almost anyone.
Yes, e-commerce still dominates Amazon’s revenue. And yes, it’s a low-margin business. But automation is changing the game. With AI-powered logistics and warehouse robotics, fulfilment is getting leaner and cheaper. That’s why Amazon is planning thousands of job cuts: not to shrink, but to streamline. The result? Billions in long-term cost savings.
Layer in AWS, advertising, and subscriptions—all fast-growing, high-margin segments—and you’ve got a tech titan quietly becoming a cash machine.
Technically, the chart looks promising too. Amazon is bouncing off a strong support level, with momentum indicators like the MACD and RSI flashing bullish signals. It’s a setup that could mark the start of a major move.
Sure, macro risks linger. A recession could hurt retail. But for long-term investors, Amazon offers one of the clearest roads to upside. In five years, it’s hard to imagine a tech rally without Amazon leading the charge.
Palantir PLTR 4.13%↑ ; Fark Horse of AI (Medium Risk)
This has been an AI darling for quite some time, but I would have always classified it as high risk.
A few quarters ago, due to the stock’s profitability was still questionable. More recently, because the price was just way too high.
But with this latest pull-back, I think this is a reasonably good place to add to Palantir with some confidence.
Palantir has quietly shifted from a government-heavy contractor to a broader enterprise AI platform. Its commercial business is growing fast, especially in the U.S., with customer count and revenue both accelerating. And while many AI companies are still burning cash, Palantir is already profitable—and consistently so. That’s rare in this space.
Its margin profile is improving, and the company's leaner operating model is helping it scale without bloating costs. This isn’t just about growth for growth’s sake—this is high-quality growth.
What makes Palantir really compelling is its position at the intersection of AI and real-world application. Its Foundry and AIP platforms are built for complex, mission-critical operations—exactly where AI can create the most value. From logistics and defense to healthcare and manufacturing, Palantir’s tools are already embedded in the systems that run major institutions.
The stock has pulled back, offering a potential entry point. We have the 200 EMA not too far off, around $64, which has acted as support before.
Long term, Palantir has the ingredients of an AI compounder: real revenue, real profits, and real-world impact.
Nebius NBIS 1.94%↑ A Smart Buy in the AI Sell-Off (High-Risk)
Nebius is a full-stack Cloud AI provider with strong upside in a post-DeepSeek world. Ironically, if DeepSeek truly lowers AI hardware needs, it makes AI more accessible—boosting overall demand, not reducing it (cue: Jevons Paradox). That shift benefits infrastructure plays like Nebius, which builds the backbone of AI delivery: data centres, custom chips, and software.
Beyond the core, Nebius owns stakes in ClickHouse, Toloka, Avride, and Tripleten, giving investors broad exposure to promising AI subsectors. ClickHouse alone could be worth over $500 million.
Financially, Nebius is projecting up to $1B in 2025 AI revenues, potentially breakeven EBITDA, and has $2B in cash and no debt.
Yes, there are risks: high volatility, international exposure, and future capital needs. But with a rock-solid balance sheet, strategic AI assets, and a market cap of ~$5.2B, Nebius could easily triple in 2025. This might be a rare second chance to buy before the market catches up.
No chart provided here as the stock has recently IPO’d and there’s not much to discuss.
Final Thoughts
From steady giants to bold bets, this trio offers something for every AI investor.
Amazon is the low-risk, high-reward play—dominant in e-commerce, AWS, and now riding a quiet AI revolution with rising margins and a surprisingly modest valuation.
Palantir sits in the middle—once speculative, now profitable, and expanding fast across commercial AI with real-world utility. It’s a re-rated stock with renewed upside.
And then there’s Nebius —the high-risk, high-upside pick. With deep infrastructure, strategic assets like ClickHouse, and post-selloff value, it could be one of 2025’s biggest AI surprises. Diversify wisely—and stay ahead of the wave.
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