Tech Stocks Taking a Hit: Which 2 AI Stocks Should You Consider for Long-Term Gains?

Tech stocks are facing a rough patch, with the Nasdaq-100 Technology Sector index dropping 13% recently, influenced by trade tensions sparked by U.S. tariffs on Canada, Mexico, and China. This has particularly hit AI stocks hard, with Palantir down 25% and TSMC losing 15%. But savvy investors might find this dip an opportunity to buy.

Palantir is well-positioned for growth in the booming generative AI market, projecting a staggering expansion from $85 billion in 2022 to potentially over $4 trillion by 2040. Its AI Platform is gaining traction with customers, reflected in a 56% increase in contract value.

On the other hand, Taiwan Semiconductor Manufacturing (TSMC) dominates the global chip market, supplying major companies like Nvidia and Apple. TSMC stands to benefit from the anticipated boom in the semiconductor sector, especially with rising demand for AI chips. Their robust growth forecast, paired with a currently favorable valuation, makes TSMC stock a compelling buy for the long term.

With the potential for significant upside in both companies, this market dip could be a great time to consider adding them to your portfolio.