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The AI Stocks I’m Seriously Considering After the Tech Wreck

Alex Smith

Alex Smith

2 months ago

5 min read 👁 17 views
The AI Stocks I’m Seriously Considering After the Tech Wreck

The latest bout of tech volatility has calmed down in a big way in recent sessions, but that doesn’t mean every firm is right back to where it was before that November selling spree. Undoubtedly, there’s still some lingering AI bubble anxiety in the markets, but, at the end of the day, investors shouldn’t let such nerves keep them away from stocks until the next big bust. In this piece, we’ll look at a few names that might be worth considering after the minor tech wreck, which was harder on some AI companies than others.

Buying into weakness is never easy

Though it’s hard to time a bottom when bottom-fishing for fallen names that found themselves in the blast radius of the latest market decline, I think that buying in small chunks after every continued downward move could be a way to not only keep your powder relatively dry as you buy the dips, but to keep your cool so that you can minimize those bad feelings that come with buying a stock right before it takes another spill.

It’s really hard not to feel terrible after seeing your recent investment be met with a quick loss. However, if you keep buying and still believe in a company from a longer-term perspective (think more than 18 months), I think it’s worth buying despite the high chance that you’ll be met with an almost instant hit to the chin.

If anything, buying a stock on the way down should accompany the expectation of more pain. That way, you won’t be devastated if a falling knife keeps falling, and you’ll probably have the temperament to keep buying on the way down as you look to interpret new developments that come in and how they’ll impact your long-term thesis on a company.

So, what’s still tempting the tech wreckage?

Shares of Shopify (TSX:SHOP) are still down around 12% from its 52-week highs, even after gaining close to 5% on Tuesday’s session. Undoubtedly, the company just saw a Black Friday record breaker, and that has many investors feeling good about the stock as it looks to recover the ground it had lost in the months prior.

I think Shopify is a prime AI monetizer that might surprise investors in its first few quarters in 2026. Of course, shares might seem a bit pricey while they’re going for more than 100 times the trailing price to earnings (P/E). However, I think the magnitude of growth makes the multiple seem far less jarring than it appears on the surface.

As Shopify looks to team up with more firms in AI, expand partnerships, and pursue organic innovation, I see it as one of Canada’s best growth stocks. And the latest Black Friday numbers, I think, warrant getting back into the name, even as shares eclipse the $220 per-share mark once again. In short, Shopify is a great AI grower that might be a relative bargain while the name looks to test its next big breakout.

The post The AI Stocks I’m Seriously Considering After the Tech Wreck appeared first on The Motley Fool Canada.

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Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

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