Democrats Just Swept Congress: 3 AI Stocks to Buy on the Dip

The Democrats just swept Congress, and within 48 hours, Wall Street decided that was terrible news for artificial intelligence.

The Nasdaq had its worst day since April of 2025, and the stocks hit hardest of all were the AI names. But here is the thing about a panic like this one. It does not stop to check the fundamentals on its way out the door. It sells first and asks questions later, and that is almost always the moment the best companies quietly go on sale.

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We've unearthed 3 AI stocks that just got cut down in this selloff, but still have some of the strongest fundamentals in the market. As of this writing, one of them is trading more than 50% below its all-time high. And we're saving the cleanest buy-the-dip setup of the three for last, so make sure you stick around for that one.

1- Broadcom (AVGO)

We will start with the biggest name on the list, Broadcom (AVGO). When the titans of AI, companies like Google, Meta, and OpenAI, decided they wanted their own custom chips instead of buying off the shelf, they went to Broadcom to design them. Broadcom also builds the high-speed networking that wires those giant AI clusters together. It is one of a handful of companies sitting right at the very center of the AI buildout.

Here is why it belongs on this list. Broadcom actually has two ways to win inside every AI data center: the custom accelerators it designs for the hyperscalers, and the high-speed networking chips that stitch thousands of those accelerators into a single machine. Both run on multi-year contracts and backlog, the kind of demand that does not disappear because a construction permit gets held up in a state capital. Every new cluster the hyperscalers build needs more of both.

The business did not break in this selloff. The price did. Shares are now sitting well off their highs, even as the company keeps beating. Broadcom has now beaten earnings estimates 21 quarters in a row. That is more than 5 years of operational excellence without a single miss.

And it is not slowing down. Because the hyperscalers keep placing those custom-chip orders, Wall Street experts forecast Broadcom's revenue growing around 40% a year, and that revenue is translating into earnings growth of roughly 50% a year going forward, about 1.4 times the pace of the broader chip industry.

Growth like that is nice. Growth at a discount is much, much nicer. And even now, after years of climbing, Broadcom trades at a PEG of just 0.72, while the average stock sits around 1.5. In plain terms, shares could nearly double from here and still be cheaper than the average company.

No surprise, then, that Wall Street is leaning in hard. Of the 27 analysts covering Broadcom, this is a Strong Buy consensus recommendation, 18 of them rating it Strong Buy outright, with zero sell recommendations. Their fair value targets point to more than 75% upside in the year ahead on average. The most bullish predictions come from 2 top 5% rated analysts, who have price targets that imply more than 100% upside as of this writing.

Now let's pop the hood on our Zen Ratings. For anyone new, the model runs every stock through 115 different fundamental, technical, and AI factors, then boils it down to one simple letter grade, A through F, plus 7 Component Grades that pinpoint where a company is strong and weak. You can look up the rating on any of 4,600-plus stocks free at wallstreetzen.com, and here is what it says about Broadcom.

Shares earn an overall B, a Buy recommendation, in the top 7% of every stock we track. Walk up through the strong grades and they build nicely. Sentiment lands in the top 24%, Growth in the top 12%, and the Artificial Intelligence grade in the top 8%, which measures the likely future timeliness of shares, not how much AI the company sells. And the anchor of the whole picture is Financial strength, in the top 4%. Growth plus Financial strength are the two most vital grades for predicting future earnings beats, and Broadcom has them both locked up. The one soft spot is Momentum, which grades only middling, at the top 48%, which is just what you would expect after a dip like this. 

The next pick does not design the chips, it builds the machines they go into. And it got hit even harder…

2- Dell Technologies (DELL)

Our next pick is the company that actually builds the machines all of this AI runs on, Dell Technologies (DELL). Every time a hyperscaler or a big enterprise stands up a new fleet of AI servers, Dell is one of the first calls they make. It is about as direct a way to own the server side of the buildout as there is.

And this selloff absolutely clobbered it. Dell is now trading more than 40% off its all-time high, not because anything broke at the company, but because the entire AI trade got dumped at once. Here is what that panic is ignoring.

The hyperscalers and big enterprises racing to build out AI are ordering servers by the rack, and Dell is one of the very few companies that can design, assemble, and ship them at that kind of scale. That demand is exactly what turned Dell's last two quarters into earnings that exploded more than 200% versus a year earlier, each one sailing past estimates as the surging server revenue dropped straight to the bottom line. They've beaten estimates for 5 quarters in a row now, and Wall Street experts expect that momentum to keep rolling well into the year ahead.

And here is the part the panic really missed. After this drop, Dell trades at a PEG ratio of 1.1, significantly below the average stock.

Wall Street has noticed the disconnect. 16 of the 22 analysts covering Dell rate shares a Buy or Strong Buy recommendation, with zero sells, landing on a Strong Buy consensus recommendation. On average, their fair value targets point to more than 75% upside in the year ahead. The most bullish analyst ranks in the top 11% and has a fair value target that implies more than 120% upside. Right behind him is a top 1% rated analyst with a target that sees more than 110% upside in the cards. Exactly what you want to see.

And our Zen Ratings agree. Dell earns an overall A, a Strong Buy recommendation, in the top 3% of the entire market, and it ranks number 3 out of 33 in the Computer Hardware group. A-rated stocks like this one have historically beaten the market by nearly 3 to 1. The fundamental profile here is quite well balanced. Financial strength lands in the top 23%, Value in the top 21%, and the AI grade in the top 18%. Growth is stronger at the top 6%. And the standout is Sentiment, in the top 4%. That Sentiment grade is the Smart Money crowd, the big institutions and insiders quietly stepping in while everyone else panic-sells.

The biggest negative here is margins. Building the hardware is a lower-margin game than designing the chips inside it, so Dell has to win on volume. But that is the tradeoff for owning the one company with the scale to supply the whole server market, firing on every cylinder, backed by every analyst who covers it, and on the clearance rack at roughly 10 times earnings. That is a Buy the Dip setup if ever there was one.

Our final pick is the one the market threw out hardest of all, and it is the purest bet on this whole list on those data centers getting built.

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3- Vertiv (VRT)

Which brings us to the final pick, and the purest bet on this entire list on the AI buildout actually happening: Vertiv (VRT).

Here is why it is perfect for today. The whole fear that kicked off this selloff was that the new Congress slows down data centers. Well, Vertiv is the company that powers and cools those data centers. Cram a room full of AI chips together and they throw off staggering amounts of heat. If the power or the cooling fails, the whole facility goes dark. There is simply no AI data center without the gear Vertiv makes.

So when that fear hit, the market threw Vertiv out the window harder than almost anything on this list. Shares now trade more than 50% below their all-time high from earlier this year. And the company's own update pins the move on the post-election volatility, not on anything going wrong in the business.

Because the business is the opposite of broken. And the need for Vertiv's gear only grows as the chips get denser. Every new generation of AI chip draws more power and throws off more heat, which means more spending on exactly the power and cooling equipment Vertiv sells, regardless of which company ends up winning the AI race. Vertiv has beaten earnings estimates 15 quarters in a row, and it has delivered some really nice earnings growth in every single one of those quarters.

As it became the thermal and power backbone of the AI data center, that turned into a license to grow, and Wall Street experts see strong double-digit earnings growth continuing in the year ahead.

On valuation, Vertiv is a classic case of GARP, Growth At A Reasonable Price. Even with all that growth, shares carry a PEG around 1.08, still comfortably under the average stock's 1.5.

And Wall Street has not blinked on this one either. 16 of the 17 analysts covering Vertiv rate shares a Buy or Strong Buy recommendation, with average fair value targets pointing to more than 90% upside in the year ahead. The biggest bull on the panel, over at Loop Capital, ranks in the top 9% of all the analysts we track, and his target implies more than 170% upside.

It will be a shock to no one when we say our Zen Ratings give Vertiv another top-notch A, a Strong Buy recommendation, in the top 4% of the entire market. It also ranks number 4 out of 42 in the Electrical Equipment group. Its strong grades are stacked about as high as they go. The AI grade lands in the top 8%, and again, that measures the likely future timeliness of shares, not how much AI the company sells. Growth and Sentiment are both in the top 4%. And the single standout is Financial strength, in the top 3%. Growth and Financial strength are the two grades that matter most for future earnings beats, and Vertiv has them near the very top, with the big institutional money leaning in right behind. The one soft spot is Momentum, which grades a D, in the bottom 18% of the market, which is just what you would expect after a drop of more than 50%.

The biggest negative is a simple one. Vertiv is the most direct data-center play on this entire list, so it has the most to lose if those construction slowdowns actually arrive, and its results can be lumpy from one quarter to the next. But step back and look at what the panic just handed you. The market threw out one of the best-graded picks-and-shovels companies of the entire AI buildout, over a fear that may never fully play out. If those data centers get built, and the demand says they will, Vertiv's equipment is inside every one of them. That makes it the one we would put under the microscope first, and perhaps the perfect pick to power your portfolio through this dip.

So there is your shopping list from the wreckage, three different layers of the same massive buildout, all marked down in the very same week of fear. Broadcom, designing the chips. Dell, building the machines they run in. And Vertiv, powering and cooling every data center that holds them.

Headline-driven dips have a way of healing faster than anyone expects, so if one of these fits your portfolio, you may not want to sit around waiting for the all-clear. And remember, the Zen Ratings are updated daily, so you can pull a free rating on over 4,600 stocks yourself just by typing in a ticker at wallstreetzen.com. Be sure to bookmark the site.

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