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Is Now the Time to Buy Beaten-Down AI Stocks?
AI stocks have gotten beaten down this year on the backdrop of a volatile technology sector.
As of the closing bell on May 20, the three major stock market indexes -- S&P 500, Nasdaq Composite, and Dow Jones Industrial Average -- are all essentially at break-even returns on the year. Under normal circumstances, mundane returns like these might have investors worried.
But 2025 has been anything but normal. Over the last several months, financial news has been packed with storylines featuring the potential for a recession, mixed economic indicators, ongoing geopolitical tensions in Europe and the Middle East, and (of course!) tariffs.
At one point, each of the major indexes had dropped by double digit percentage points. The Nasdaq fared worst of all, declining by 21% at its low point. While the Nasdaq has bounced back considerably in recent weeks, some technology stocks are still trading for lower-than-usual valuations.
