By Daniel Sparks, The Motley Fool
Publication Date: 2025-11-22 20:41:00
Time to buy? It depends on what you are considering.
After a powerful run at the start of the year, it’s tech-heavy Nasdaq Composite (^IXIC +0.88%) has slipped from recent highs as investors reassess how much they are willing to pay for artificial intelligence (AI) beneficiaries. Out of fear, some investors appear to be turning away from some of the most aggressive AI winners.
This nervousness is understandable. Spending on AI infrastructure has skyrocketed and the value of many AI-related stocks has multiplied. But the current sell-off also reveals a gap between truly attractive AI investments and those that may be overvalued.
For investors trying to separate opportunities and risks, Microsoft (MSFT 1.48%) And Palantir Technologies (PLTR 0.57%) illustrate this range. Microsoft looks like a credible way to lean on long-term AI demand during times of volatility, while Palantir will likely be far more at risk if AI spending or sentiment cools.
Image source: Getty Images.
An AI stock to buy
Microsoft is probably sitting…
