2 Artificial Intelligence (AI) Stocks I'd Buy With $1,000 Before They Rebound From the Tech Sell-Off

Key Points
AMD's earnings are set to accelerate impressively in the next three to five years, making it a no-brainer buy right now.
Apple can unlock a huge growth opportunity in AI because of its massive base of installed devices.
- 10 stocks we like better than Advanced Micro Devices ›
Artificial intelligence (AI) stocks have made investors significantly richer over the past three years or so, as the mainstream adoption of this technology by businesses, governments, and consumers has spurred major investments in both AI-related hardware and software.
However, AI stocks have been under pressure in recent months due to several factors. While companies in this sector have been reporting impressive growth, investors are more concerned about geopolitical and macroeconomic challenges that have emerged in recent months. High oil prices, the rising probability of a U.S. recession, and the Middle East conflict are some of the reasons weighing on AI stocks lately.
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But if I had $1,000 in investible cash right now after meeting expenses, clearing high-interest loans, and saving for tough times, I would buy Advanced Micro Devices (NASDAQ: AMD) and Apple (NASDAQ: AAPL) with that money. Let's look at the reasons why.
Advanced Micro Devices
AMD stock is down nearly 6% so far in 2026, and that doesn't seem justified considering its growing stature in the AI chip market. The chip designer witnessed a 34% increase in revenue in 2025 to $34.6 billion, along with a 26% increase in earnings per share to $4.17. This robust growth was driven by gains in the company's data center, client, and gaming businesses, all of which have been benefiting from AI adoption.
AMD's data center business produced $16.6 billion in revenue last year, an increase of 32%. Don't be surprised to see this segment clocking faster growth in 2026 and beyond -- AMD's Instinct data center graphics cards and Epyc server processors are gaining widespread adoption among hyperscalers, as management noted on the February earnings call.
AMD claims that eight of the top 10 AI companies have been using its Instinct processors. Additionally, top hyperscalers such as Amazon, Alphabet's Google, and others launched more than 500 cloud instances powered by AMD's Epyc server central processing units (CPUs) last year. Meanwhile, the huge contracts AMD has signed with hyperscalers for its upcoming chip platforms indicate that the company's data center business is well positioned for healthy growth in the coming years.
In all, AMD believes that the multiple growth opportunities in PC, gaming, and data centers could help it clock at least $20 per share in earnings over the next three to five years. That would be a massive jump over AMD's 2024 earnings, indicating that this semiconductor stock can make investors significantly richer over the long run.
Apple
Apple may not have made waves in the AI market so far, with critics pointing out that it has fallen behind rivals such as Samsung and Google in generative AI smartphones, but investors will do well to look at the bigger picture.
Apple was the biggest smartphone vendor in the fourth quarter of 2025 with a 24.2% market share, according to IDC. It shipped 81.3 million iPhones during the quarter, while annual shipments totaled 247.8 million, up 6.3% from 2024 levels. Apple's iPhone shipments outpaced the overall market's 1.9% growth in 2025.
So, even though Apple is considered to be behind its smartphone rivals in AI, its sales figures suggest otherwise. However, Apple's AI growth opportunity doesn't lie in the hardware side of the business. Of course, the company could sustain healthy growth rates by packing its iPhones, iPads, and MacBooks with AI features, but the real monetization opportunity lies in software.
Apple management noted on the January earnings call that enterprises have been using its AI-enabled devices to improve productivity. Also, the company's massive installed base of more than 2.5 billion active devices means that it can monetize various Apple Intelligence features. Of course, Apple is tight-lipped about how it plans to monetize its AI offerings, but it could offer paid subscription tiers to customers looking to use advanced AI features.
AI companies such as OpenAI, Microsoft, and Google charge customers for advanced features, so don't be surprised if Apple heads in the same direction. As such, Apple stock could turn out to be a big AI winner in the long run, as it can benefit from both the hardware and software sides of this technology.
This probably explains why analysts are anticipating a slight uptick in its earnings growth going forward.
Given that this "Magnificent Seven" stock has retreated more than 8% in 2026, investors can consider adding it to their portfolios from a long-term perspective. After all, AI could supercharge Apple's growth once the company decides to make money from this technology by tapping into its massive user base.
Should you buy stock in Advanced Micro Devices right now?
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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, and Microsoft and is short shares of Apple. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.