March 25, 2025

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AI Stocks Rebound Amid Nasdaq Correction, Apple's AI Delay Weighs on iPhone Demand

The recent Nasdaq correction has brought attention to the artificial intelligence (AI) sector, with several AI stocks experiencing significant declines. Despite this, many experts believe that AI technology will continue to play a crucial role in shaping the future of various industries. As investors look for opportunities to buy into the sector, several AI stocks are being highlighted as potential buys. In this brief, we will explore some of the key articles and trends in the AI sector, including Apple's delay in releasing AI updates, the potential for AI stocks to rebound, and the growing importance of AI in areas such as cybersecurity and finance.

Apple's Siri AI Delay Could Weigh on iPhone Demand

Apple's delay in releasing AI updates to its devices could negatively impact iPhone demand, according to a research note from UBS Group. The delay is expected to affect the release of iOS 18.4, which was anticipated to include significant AI enhancements. Instead, the improvements will likely arrive next year, which could lead to sluggish upgrade activity. The average age of an iPhone, excluding China, is now around 37 months, and the lack of a major redesign or AI upgrade in the upcoming iPhone 17 may not be enough to drive sales. UBS analyst David Vogt holds a neutral rating on Apple with a $236 price target.

Here Are 2 Artificial Intelligence (AI) Stocks That Tumbled During the Nasdaq Correction

The Nasdaq correction has led to significant declines in several AI stocks, but some experts believe that this presents a buying opportunity. Two AI stocks that have been highlighted as potential buys are AppLovin and Arm Holdings. AppLovin has evolved from a mobile game developer to a leading adtech company, using its mobile game experience and catalog to build a leading AI-driven adtech platform. The company has reported tremendous growth, with advertising revenue increasing 75% in 2024 to $3.2 billion. Arm Holdings, on the other hand, licenses its instruction set architectures for CPUs to a wide range of customers, providing a unique business model that is protected against recession.

Investors Heavily Search SoundHound AI, Inc.

SoundHound AI, Inc. has been one of the most searched-for stocks on Zacks.com, with investors looking for information on the company's performance. SoundHound AI has reported significant revenue growth, with a 101.4% increase in the last reported quarter. The company's EPS has also improved, with a net income of $1.58 billion in 2024. However, the stock has been graded F on valuation, indicating that it is trading at a premium to its peers. Despite this, the company's Zacks Rank #3 suggests that it may perform in line with the broader market in the near term.

Here Is My Top Artificial Intelligence (AI) Stock to Buy During the Correction

The Trade Desk is being highlighted as a top AI stock to buy during the correction, despite missing its previous revenue projection. The company's platform is becoming increasingly essential to advertisers, and its improved Kokai platform has helped bring sustained revenue growth and considerable improvements in profitability. The Trade Desk's forward P/E ratio indicates that it is on its way to becoming a value stock, making it a potential buy for investors.

Nasdaq Correction: 2 AI Stocks Down 33% and 86% to Buy Before They Soar

Arm Holdings and Upstart Holdings are two AI stocks that have been identified as potential buys during the Nasdaq correction. Arm Holdings is down 33% from its 2024 high, but Wall Street analysts see the stock as having 42% upside potential. Upstart Holdings, on the other hand, is down 86% from its 2021 high, but the company's median target price implies 57% upside potential. Both companies have significant growth potential, with Arm Holdings benefiting from the increasing demand for AI-powered computing platforms and Upstart Holdings leveraging its AI-driven lending platform to provide consumer credit products.

AI Security Breaches and Quantum Hacks: Why Investors Are Watching This Space

The increasing threat of AI security breaches and quantum hacks is becoming a major concern for investors. Companies such as Scope Technologies Corp. and IonQ, Inc. are developing solutions to address these threats, with Scope Technologies Corp. recently announcing a $1.5 million private placement financing to accelerate the development of its quantum-resistant encryption and storage solutions. IonQ, Inc. has demonstrated a real-world industrial use case where quantum outperformed classical computing, highlighting the potential for quantum computing to revolutionize various industries.

Almost one third of financial firms embrace AI for communications compliance

A new report has found that 31% of financial firms are using AI for communications surveillance, or plan to do so in the next 12 months. The use of AI in communications compliance is becoming increasingly important, with regulators imposing significant fines on companies that fail to maintain and preserve electronic communications. Global Relay's survey found that data security, budget, explainability, and transparency are the main barriers to AI adoption, but the benefits of using AI in communications surveillance include reducing false positives and improving risk identification.

Bank of America double upgrades what it says is an underappreciated AI play

Bank of America has double upgraded an underappreciated AI play, citing the company's significant growth potential. The upgrade is a vote of confidence in the AI sector, which has experienced significant declines during the Nasdaq correction.

Cognizant to Deploy Neuro AI Platform to Accelerate Enterprise AI Adoption

Cognizant has announced advancements in its Neuro AI platform, aimed at accelerating the cross-industry adoption of AI technology. The platform will leverage NVIDIA AI technology to deliver specialized large language models and applications, enabling businesses to scale AI value efficiently. Cognizant's collaboration with NVIDIA will focus on five key areas, including enterprise AI agents, industry-specific large language models, digital twins for smart manufacturing, foundational infrastructure for AI, and the capabilities of NVIDIA AI technology.

Key Takeaways

  • The Nasdaq correction has brought attention to the AI sector, with several AI stocks experiencing significant declines.
  • Apple's delay in releasing AI updates could negatively impact iPhone demand.
  • AppLovin and Arm Holdings are potential buys during the correction, with significant growth potential.
  • SoundHound AI, Inc. has reported significant revenue growth, but is trading at a premium to its peers.
  • The Trade Desk is a top AI stock to buy during the correction, despite missing its previous revenue projection.
  • Arm Holdings and Upstart Holdings have significant growth potential, with Arm Holdings benefiting from the increasing demand for AI-powered computing platforms and Upstart Holdings leveraging its AI-driven lending platform.
  • The threat of AI security breaches and quantum hacks is becoming a major concern for investors, with companies such as Scope Technologies Corp. and IonQ, Inc. developing solutions to address these threats.
  • The use of AI in communications compliance is becoming increasingly important, with 31% of financial firms using AI for communications surveillance or planning to do so in the next 12 months.
  • Bank of America has double upgraded an underappreciated AI play, citing the company's significant growth potential.
  • Cognizant's Neuro AI platform will leverage NVIDIA AI technology to deliver specialized large language models and applications, enabling businesses to scale AI value efficiently.

Sources

Artificial Intelligence AI Stocks Nasdaq Correction Apple AI Delay AI Security Breaches Quantum Hacks