U.S. stock markets are likely to close the first quarter on a negative note. Wall Street is likely to remain volatile primarily due to uncertainty regarding the Trump administration’s tariffs and trade policies, as well as their impact on the U.S. economy, particularly on an already elevated inflation rate. Moreover, the fear of a near-term recession dampened investors’ confidence in risky assets like equities.

At this juncture, we recommend five AI-related stocks with a favorable Zacks Rank to invest on the dip. These are Arista Networks Inc. (ANET Quick QuoteANET - Free Report) , UiPath Inc. (PATH Quick QuotePATH - Free Report) , Jabil Inc. (JBL Quick QuoteJBL - Free Report) , BWX Technologies Inc. (BWXT Quick QuoteBWXT - Free Report) and Five9 Inc. (FIVN Quick QuoteFIVN - Free Report) .

AI Stocks Look Lucrative

Wall Street’s high-flying northward journey from January 2023 to January 2025 was predominantly supported by an astonishing rally in the technology sector, buoyed by the explosive growth of generative artificial intelligence (AI).

However, as U.S. stock markets are facing a downturn and a near-term recession looms large, investors are gradually booking profits in tech stocks, for which valuations are extremely overstretched. Meanwhile, through this process of sectoral churn, several good-quality AI-related stocks have turned attractive.

5 High-Quality AI Stocks to Buy

These AI stocks have strong growth potential for 2025 and beyond. Further, these stocks have seen positive earnings estimate revisions over the past 60 days. Each of our picks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of our five picks year to date.

Image Source: Zacks Investment Research

Arista Networks Inc.

Arista Networks has been benefiting from positive demand trends owing to its strong product portfolio, which is highly scalable, programmable and provides data-driven automation, analytics and support services. 

ANET’s EOS Smart AI Suite and Arista AVA (Autonomous Virtual Assist) enhance AI job monitoring, deep-dive analytics, and proactive performance issue resolution. Its AI suite also focuses on network security and optimization.

ANET’s AI-powered cloud networking solutions provide predictable performance and programmability, enabling seamless integration with third-party applications for network management, automation and orchestration. 

Arista Networks should benefit from its software-driven, data-centric approach that helps customers build their cloud architecture and enhance the cloud experience they offer their clients. Arista AVA offers augmentation of pervasive visibility, continuous threat detection, and enforcement. The growing demand for 200- and 400-gig high-performance switching products augurs well for ANET’s long-term growth. 

Impressive Valuation for ANET Shares

Arista Networks has an expected revenue and earnings growth rate of 18.1% and 12.8%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 5.8% in the past 60 days. ANET has a long-term (3-5 years) earnings growth rate of 14.4%. The company has an ROE of 29.91% compared with 0.73% of the industry and 17.11% of the S&P 500. 

Massive Short-Term Price Upside Potential for ANET Stock

Arista Networks is currently trading at a 40.8% discount to its 52-week high price. The short-term average price target of brokerage firms for the stock represents an increase of 48.3% from the last closing price of $78.96. 

UiPath Inc.

UiPath provides an end-to-end automation platform that offers a range of robotic process automation solutions primarily in the United States, Romania, the United Kingdom, the Netherlands, and internationally. PATH offers a suite of interrelated software to build, manage, run, engage, measure, and govern automation within the organization. 

The PATH platform's embedded AI, ML, and NLP (Natural Language Processing) capabilities improve decisioning and information processing. PATH introduced new generative AI features, including specialized LLMs (Large Language Model) such as DocPATH and CommPATH, and Context Grounding, to enhance automated AI models for specific business needs.

Strong Price Upside Potential for PATH Shares

UiPath has an expected revenue and earnings growth rate of 6.8% and 0%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 10.4% in the past 30 days. PATH has a long-term earnings growth rate of 19%.

UiPath is currently trading at a 52.8% discount to its 52-week high price. The average short-term price target of brokerage firms represents an increase of 6.7% from the last closing price of $10.87. 

Jabil Inc. 

Jabil has been benefiting immensely from healthy momentum in the capital equipment, AI-powered data center infrastructure, cloud, and digital commerce business verticals. Its focus on end-market and product diversification is a key catalyst. Jabil’s target that “no product or product family should be greater than 5% operating income or cash flows in any fiscal year” is commendable. 

JBL’s high free cash flow indicates efficient financial management practices, optimum utilization of assets, and improved operational efficiency. Massive application of generative AI is set to drastically increase the efficiency of JBL’s automated optical inspection machines for automation industry.  

Lucrative Valuation for JBL Shares

Jabil has an expected revenue and earnings growth rate of -3.4% and 5.5%, respectively, for the current year (ending August 2025). The Zacks Consensus Estimate for current-year earnings has improved 2.3% over the past seven days. 

JBL has a P/E ratio of 16.06X compared with 17.20X of the industry and 18.53X of the S&P 500. It has a P/S ratio of 0.57X compared with 0.57X of the industry and 2.94X of the S&P 500. JBL has an ROE of 49.64% compared with 10.61% of the industry and 17.11% of the S&P 500. It has a long-term earnings growth rate of 12.5%.

Solid Short-Term Price Upside Potential for JBL Stock

Jabil is currently trading at a 20.3% discount to its 52-week high price. The short-term average price target of brokerage firms for the stock represents an increase of 21.3% from the last closing price of $139.40. 

BWX Technologies Inc.

BWX Technologies manufactures and sells nuclear components in the United States, Canada, and internationally. BWXT operates through two segments, Government Operations and Commercial Operations.

BWXT supplies precision-manufactured components and services to the commercial nuclear power industry. BWXT offers technical, management and site services to governments in complex facilities and environmental remediation activities.

BWXT has landed deals and partnerships with the U.S. Department of Defense to help build a cutting-edge micro-nuclear reactor. It is also working alongside key commercial nuclear energy companies such as GE Vernova and SMR standout TerraPower.

The energy-hungry AI space has made nuclear energy one of the hottest industries on Wall Street over the past year. In December 2024, the US Department of Energy (DOE) reported that data center energy usage will “double or triple by 2028,” after doubling over the past decade. 

A research report by Rystad Energy predicted that the combined expansion of traditional and AI-driven data centers, along with chip foundries, will increase the cumulative demand for U.S. electric power by 177 TWh from 2023 to 2030, reaching a total of 307 TWh. 

Attractive Valuation for BWXT Shares

BWX Technologies has an expected revenue and earnings growth rate of 11.5% and 4.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.9% over the past seven days. 

BWXT has a P/E ratio of 29.37X compared with 31.11X of the industry and 18.53X of the S&P 500. It has an ROE of 30.00% compared with 10.34% of the industry and 17.11% of the S&P 500. BWXT has a long-term earnings growth rate of 11.5%.

Huge Short-Term Price Upside Potential for BWXT Stock

BWX Technologies is currently trading at a 25.6% discount to its 52-week high price. The short-term average price target of brokerage firms for the stock represents an increase of 30.6% from the last closing price of $101.44. 

Five9 Inc.

Five9 provides intelligent cloud software for contact centers in the United States, India, and internationally. FIVN offers a virtual contact center cloud platform that delivers a suite of applications, enabling a broad range of contact center-related customer service, sales, and marketing functions. 

FIVN’s platform comprises interactive virtual agents, agent assistance, workflow automation, workforce engagement management, AI insights, and AI summaries. It allows management and optimization of customer interactions across voice, chat, email, web, social media, and mobile channels directly or through its application programming interfaces.

FIVN has been benefiting from the growing adoption of AI tools in its call center services, with personalized AI agents emerging as a major growth driver. On Feb. 19, Five9 introduced its Intelligent CX Platform powered by Five9 Genius AI on the Google Cloud space. FIVN also released new Five9 AI agents tailor-made for Google Cloud.  

Excellent Valuation for FIVN Shares

Five9 has an expected revenue and earnings growth rate of 9.8% and 5.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.6% over the past 60 days. 

FIVN has a P/E ratio of 11.39X compared with 27.65X of the industry and 18.53X of the S&P 500. It has a P/S ratio of 2.16X compared with 3.71X of the industry and 2.94X of the S&P 500. FIVN has a long-term earnings growth rate of 16.9%.

Astonishing Short-Term Price Upside Potential for FIVN Stock

Fivn9 is currently trading at a 53.8% discount to its 52-week high price. The short-term average price target of brokerage firms for the stock represents an increase of 87% from the last closing price of $29.32.