The recent turbulence in the stock market has affected many sectors, including artificial intelligence (AI). Despite the downturn, savvy investors may find promising opportunities in this field. This article highlights three AI stocks that have potential for long-term growth: Nvidia, Amazon, and Salesforce. Each company is uniquely positioned to benefit from the expanding AI infrastructure market, with significant investments being made by major tech players. These companies offer a mix of innovation, strong financials, and strategic positioning that make them attractive buys at their current valuations.

Nvidia, renowned for its leadership in graphics processing units (GPUs), has faced a 25% decline from its peak earlier this year. However, the company remains indispensable in the burgeoning AI infrastructure race. Cloud computing giants such as Amazon, Microsoft, and Alphabet are collectively investing hundreds of billions of dollars in building out their AI capabilities. Nvidia's CUDA software platform, which allows developers to harness GPUs for diverse applications beyond gaming, has given it a commanding 90% market share. Moreover, despite some firms developing custom AI chips, they often still rely on Nvidia’s versatile GPUs. The recent dip has made Nvidia's forward P/E ratio and PEG ratio particularly appealing, suggesting undervaluation.

Amazon, primarily recognized for its e-commerce dominance, is also a powerhouse in cloud computing through Amazon Web Services (AWS). AWS contributes significantly to Amazon’s profitability, boasting a 19% revenue increase and a 47% surge in operating income last quarter. The company has developed specialized application-specific integrated circuits (ASICs) to enhance performance while reducing power consumption. Although ASICs lack the flexibility of GPUs, they provide a cost advantage. AWS customers leverage these services to build and deploy their own AI models using platforms like SageMaker. With plans to invest $100 billion in AI data centers this year, Amazon is poised to maintain its leadership in cloud computing and AI infrastructure.

Salesforce, a leader in customer relationship management (CRM) software, has introduced an innovative agentic AI solution called Agentforce. Launched in October 2024, Agentforce enables AI agents to perform tasks with minimal human intervention. The platform has already secured 5,000 deals, including 3,000 paying customers. Salesforce recently unveiled AgentExchange, a marketplace offering over 200 partners and hundreds of ready-to-use solutions. At $2 per interaction, Agentforce presents a substantial growth opportunity for Salesforce. The company's stock, down 20% from recent highs, now trades at a favorable valuation, making it an attractive investment for those interested in AI-driven productivity enhancements.

Despite the recent volatility, these three companies—Nvidia, Amazon, and Salesforce—stand out as robust choices for investors looking to capitalize on the AI revolution. Their strategic initiatives and strong market positions suggest that they are well-prepared to thrive in the evolving landscape of artificial intelligence. For those willing to take a long-term view, these stocks offer compelling value and potential for significant returns.