US Stock Market Correction Creates Opportunity: Bet on NVDA & PLTR

The recent market crash, triggered by fears of a trade war and economic slowdown, has created a buying opportunity for select technology stocks with strong fundamentals, high growth potential and resilient business models. While major indices like the Nasdaq fell 4%, companies like NVIDIA NVDA and Palantir Technologies PLTR remain well-positioned for long-term gains.

NVIDIA: AI & Data Center Boom Ensures Long-Term Growth

On March 10, NVIDIA saw a 5.1% decline, presenting a potential buying opportunity for investors. The chipmaker is currently viewed as undervalued compared to the broader industry, making it an attractive entry point. Based on the trailing 12-month price-to-earnings (P/E) ratio, NVIDIA is trading at 37.41, significantly lower than the industry average of 45.34.

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With unprecedented demand for its Blackwell AI chips, which are driving next-generation artificial intelligence (AI) models and inference systems across various industries, NVIDIA remains well-positioned for long-term growth. This favorable valuation, combined with its AI dominance, makes it an appealing investment at current levels.

The company’s AI computing revenues have doubled, largely driven by enterprise adoption and the increasing reliance of tech giants like AWS, Azure and Google Cloud on NVIDIA’s GPUs. Beyond cloud computing, NVIDIA’s AI technology is making significant strides in autonomous vehicles, robotics and healthcare, solidifying its position as a key player in multiple high-growth markets.

Even amid market volatility and trade tensions, NVIDIA’s strong AI and data center demand provide a buffer against economic downturns. While traditional tech stocks may be affected by geopolitical concerns, cloud providers and enterprises continue to expand their AI investments, ensuring NVIDIA’s long-term revenue growth stays intact. With a dominant position in AI computing, record-breaking financials and expanding industry applications, NVIDIA is well-positioned to outperform the market and remain a high-growth stock in the years ahead.

PLTR: Future of AI & Data Analytics

On March 10, PLTR saw a 10.1% decline, presenting a potential buying opportunity for investors, especially given its dominance in AI and expanding presence in government contracts, which provide a stable and long-term revenue stream.

The company’s AI platform (AIP) has significantly expanded its customer base, growing fivefold in the U.S. commercial sector over the past three years. Additionally, government contracts surged 45% year over year, ensuring consistent revenues from critical federal projects. Palantir’s AI-driven software helps organizations automate decision-making, streamline operations and reduce costs, making it an essential tool for enterprises and government agencies alike.

The company also boasts strong cash flow and a promising future expansion strategy. In the fourth quarter of 2024, Palantir generated $517 million in free cash flow, underscoring its financial strength and ability to reinvest in growth initiatives. Moreover, it secured a record $1.8 billion in new contracts, including major deals with the U.S. Army and the U.K.’s National Health Service (“NHS”). Palantir forecasts 31% revenue growth for 2025, signaling continued momentum in the AI and data analytics market.

Final Verdict: NVDA & PLTR are Must-Buy Stocks

While the broader market experiences turbulence, AI, cloud computing and data analytics are thriving. NVIDIA and Palantir, both carrying a Zacks Rank #2 (Buy), are leading players in these high-growth industries, making them attractive long-term investments. Investors looking for stocks with strong fundamentals, market leadership and growth potential should consider adding NVDA and PLTR to their portfolios. You can see the complete list of today’s Zacks #1 Rank stocks here.

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