Buy The Dip: 5 Top Nasdaq AI Stocks
Jun 12, 2026, 11:30 AM ETCOMP:IND, NDX, MU, MXL, AMD, LITE, VICR
- The Nasdaq rebounded after a selloff that hit a broad range of tech stocks, including AI infrastructure companies with strong fundamentals.
- The tech sector’s strong earnings growth and guidance have been overshadowed by macro, geopolitical, and AI bubble concerns.
- McKinsey estimates that AI data center spending could total $5.2T by 2030, benefiting providers of semiconductors, networking equipment, and power technologies.
- I reveal 5 top Strong Buy Nasdaq stocks, spanning the AI ecosystem, that pulled back during the June tech selloff.
- I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Quant Growth and Income, which is a model portfolio for dividend investors interested in capital appreciation and income.
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Nasdaq Pullback Overshadows Strong Tech Earnings
A broad-based tech selloff fueled by concerns over geopolitical tensions, inflation, and elevated valuations pressured a wide range of stocks, including AI infrastructure companies with strong earnings growth and improving fundamentals. While the Nasdaq Composite (COMP:IND) and Nasdaq-100 (NDX) rebounded sharply in a rally on Wednesday, both remain below early-June highs.
Despite AI bubble fears, tech companies have been delivering impressive financial results and guidance this year. The AI companies leading earnings growth stand to gain even more from surging demand for data center capacity. McKinsey estimates AI-related investments in data center infrastructure, computing hardware, and power systems could total $5.2 trillion through 2030.
McKinsey
As I discussed in a piece on the Mag 7 capex explosion, hyperscalers are expected to spend more than $700B on AI-related investments in 2026 alone. This will require an unprecedented level of infrastructure and components, including high-performance microchips, advanced networking technologies, and electrical power.
Although the Nasdaq-100 recently touched record highs, P/E multiples have actually compressed, as earnings growth continues to outpace price appreciation. The Nasdaq-100 saw Q1 earnings grow by 46% YoY, driven by companies across the AI infrastructure spectrum.
Nasdaq
The recent Nasdaq selloff offers opportunities to gain exposure to high-quality AI infrastructure companies. Although tech stocks have begun to recoup losses, several remain below recent highs. Seeking Alpha’s quantitative tools can help investors find the top beaten-down Nasdaq stocks with strong fundamentals that are poised for the AI infrastructure revolution.
How I Picked Top Nasdaq AI Stocks
Using Seeking Alpha’s Stock Screener, I filtered for Strong Buy Nasdaq stocks that offer exposure to the AI infrastructure market, and focused on those that pulled back during this month’s tech selloff. My basket of five stocks includes providers of critical products and services across the AI stack, including microchips, optical lasers, and electronic components.
Seeking Alpha’s Quant Ratings are generated by a proprietary model that analyzes more than 100 metrics for each stock relative to sector peers and grades them across five core factors: Valuation, Growth, Profitability, Momentum, and EPS Revisions. Below, I discuss the recent context and key drivers of each stock’s Strong Buy quant rating.
1. Micron Technology, Inc. (MU)
Market Capitalization: $1.12T
Quant Rating: Strong Buy
Sector: Information Technology
Industry: Semiconductors
Quant Sector Ranking (as of 6/12/2026): 1 out of 532
Quant Industry Ranking (as of 6/12/2026): 1 out of 69
One of the top performers in Alpha Picks and the PRO Quant Portfolio, Micron shares have been on a bumpy ride, sliding in a chip selloff last week before the broader tech dip. Although MU has climbed back, it remains over 10% below its record high. The stock’s overall price performance across the past year has been outstanding, boosted by earnings beats and analyst upgrades.
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In a recent Nasdaq Quant Leaders piece, I focused on Micron’s incredible Growth Grade, anchored in a forward EPS growth rate of over 340%. Strong AI-driven memory demand has bolstered Micron’s earnings visibility, accompanied by bullish Wall Street revisions.
Micron’s Profitability Grade is equally impressive, featuring EBITDA margins that top the sector median by over 423%. The metric strips away the impact of interest, taxes, depreciation, and amortization, shining a light on Micron’s core earnings power. Meanwhile, operating margins continue to improve, reaching 69% in fiscal Q2.
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Despite soaring momentum, Micron’s valuation profile has improved from three months ago, as forward P/E sits at about 15x versus the sector’s 24x. And based on forward PEG, a metric that combines P/E and long-term growth, Micron is trading at a 92% discount to the sector. A Nasdaq leader at the center of the AI infrastructure boom, Micron’s exceptional momentum, growth, and profitability have kept the stock a Strong Buy for over eleven straight months.
2. MaxLinear, Inc. (MXL)
Market Capitalization: $7.26B
Quant Rating: Strong Buy
Sector: Information Technology
Industry: Semiconductors
Quant Sector Ranking (as of 6/12/2026): 4 out of 532
Quant Industry Ranking (as of 6/12/2026): 3 out of 69
MaxLinear’s quant rating has improved dramatically in the past six months, driven by AI-fueled earnings growth and Wall Street analyst upgrades. The stock is already bouncing back soundly after a steep decline in four straight losing sessions. Since 2020, MXL has sharpened its focus on infrastructure and connectivity, expanding its addressable market from $4B to $11B through a combination of organic growth and strategic acquisitions.
MXL vs. S&P 500 Tech Sector (XLK): 1Y Price Return
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Robust production ramps in optical data center-oriented platforms for hyperscalers boosted Q1 revenue by 196% YoY, as the infrastructure segment expanded to become the company’s largest sales category. Management expects momentum to continue as cloud customers rapidly scale AI-centric architectures, increasing demand for deployments of high-speed networking technologies.
As hyperscaler demand supports a strong earnings outlook, the company showcases a forward long-term EPS growth rate (3-5 CAGR) of 88%. This metric is a key driver of the stock’s A+ Growth Grade, and is especially impressive when you consider the sector median is only 18%. Backed by solid sell-side earnings revisions, MXL EPS is projected to grow by 331% in FY 2026 and revenue by +40% to $657M.
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Although strong momentum has the stock trading at premium earnings multiples, MXL has maintained a neutral valuation score with forward PEG at a discount to the sector of about 55%. On the rebound with strong fundamentals, MXL is a fast-growing Nasdaq chip stock to consider.
3. Advanced Micro Devices, Inc. (AMD)
Market Capitalization: $796.47B
Quant Rating: Strong Buy
Sector: Information Technology
Industry: Semiconductors
Quant Sector Ranking (as of 6/12/2026): 5 out of 532
Quant Industry Ranking (as of 6/12/2026): 4 out of 69
A leading supplier of compute chips, AMD has benefitted from agentic AI driving demand for high-performance CPUs and GPUs. Underscoring the outlook, AMD said forecasts from OpenAI (OPENAI) and Meta (META) have exceeded the company’s original plan for 2027, while tight supply conditions support pricing power.
AMD vs. Semiconductor Industry Peers (SMH): 1Y Price Return
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AMD’s Q1 revenue jumped nearly 38% to $10.3B on a surge in data center demand, delivering another blowout quarter, while management forecast server CPU revenue to grow more than 70% YoY. A strong earnings and revenue runway could potentially extend through FY 2028, supported by positive consensus estimates.
Strong execution and operating leverage have driven earnings expansion in the past year for a standout Growth Grade, supported by stellar forward growth metrics across revenue, EPS, and operating profit.
Seeking Alpha
The growth boom comes on top of exceptional profitability marks, led by FCF margins well above both the sector median and historical averages. In addition, AMD has generated $9.73B in operating cash flow in the past 12 months.
AMD’s valuation has been pressured by scorching momentum, but its long-term growth outlook supports a forward PEG that remains at a 20% discount to the sector. A pivotal player in the global AI buildout, AMD is a fundamentally strong Nasdaq stock that has proven resilient.
4. Lumentum Holdings Inc. (LITE)
Market Capitalization: $69.21B
Quant Rating: Strong Buy
Sector: Communications Equipment
Industry: Semiconductors
Quant Sector Ranking (as of 6/12/2026): 6 out of 532
Quant Industry Ranking (as of 6/12/2026): 1 out of 39
A member of Alpha Picks since March, Lumentum has ridden demand for optical components used in AI data centers, and stands to gain from explosive capex spending by hyperscalers. In fact, shares jumped last week after Alphabet (GOOG) (GOOGL) announced it was raising $80B to scale AI infrastructure and global compute, citing stronger-than-expected demand.
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Strong demand for laser chips and specialized assemblies drove LITE’s surging growth in revenue, which is up almost 70% in the past year. As LITE’s long-term earnings visibility continues to expand, profitability is expected to improve, driven by a favorable supply-demand balance alongside better yields and scrap rates.
One stat that looks particularly attractive is LITE’s forward long-term EPS growth rate of 138%, underpinning an A+ Growth Grade, in addition to solid growth in revenue and operating income. FY 2026 earnings are expected to explode by 300% YoY, and consensus estimates have trended favorably, evidenced by 18 upward revisions to no down revisions in the last 3 months.
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LITE’s attractive forward PEG, marking a 45% discount to the sector, offsets elevated earnings multiples for a solid valuation score. Expected to remain a major beneficiary of AI structural tailwinds, LITE’s strong overall fundamentals continue to support a Strong Buy rating.
5. Vicor Corporation (VICR)
Market Capitalization: $13.59B
Quant Rating: Strong Buy
Sector: Industrials
Industry: Electrical Components and Equipment
Quant Sector Ranking (as of 6/12/2026): 1 out of 606
Quant Industry Ranking (as of 6/12/2026): 1 out of 59
Sitting at the other end of the AI ecosystem, top industrial stock Vicor reached new highs last month after lifting revenue guidance, citing new royalty income tied to its AI power-system technology. A provider of high-density power delivery solutions, VICR is well-positioned to gain from AI data center demand as hyperscalers race to deploy increasingly energy-intensive hardware.
VICR vs. S&P 500 Industrial Sector (XLI): 1Y Price Return
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Strong demand led by high-performance computing customers helped drive fiscal Q1 revenue up 20%, while the backlog rose 70% sequentially. In light of strong AI-driven demand from OEMs and hyperscalers, VICR is expanding capacity to increase power module production, which has led to strong earnings estimates.
The Q1 results and guidance have helped to contribute to a top-notch Growth Grade, which is supported by broad financial performance, including surging operating profits and forward EPS growth of about 247%. VICR also showcases some solid profitability marks, including a return on equity of 20%.
Seeking Alpha
After rising over 520% in the past year, Vicor is trading at a premium to the sector, but solid earnings growth, ROE, and momentum support a Strong Buy rating. VICR wraps up my basket of best Nasdaq stocks for the rebound, all poised to gain from the global AI infrastructure boom.
Conclusion: 5 Top Nasdaq AI Stocks To Buy On The Dip
The Nasdaq selloff, fueled by geopolitical tensions, inflation, and valuation concerns, was broad-based, hitting many AI companies with strong fundamentals. Although the Nasdaq recouped some losses, the index remains below recent all-time highs. The selloff could present buying opportunities for investors seeking exposure to the AI infrastructure boom. SA Quant identified five Strong Buy Nasdaq stocks spanning the entire AI ecosystem, including semiconductors, optical lasers, and power technologies.
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I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Alpha Picks, which selects the two most attractive stocks to buy each month, and also determines when to sell them.