High-multiple growth stocks have taken a huge hit to the chin in this latest tariff-fuelled market correction. As the high-flyers swoop lower, some of those who still believe in the AI boom may wish to start loading up. Who knows when the next leg of the AI rally will kick off?

While it certainly feels like the AI bubble is bursting in the past week, as economic uncertainties climb to the highest they’ve been in recent memory, contrarians had no issue stepping in on Friday’s relief rally session, with more-impacted, high-growth names leading the upward charge. Nobody knows if the stock market correction will be limited to 10%.

As always, only time will tell. But either way, no news on tariffs seems to be the best news markets have had in quite a few sessions. Of course, the gains could be given right back as the pace of tariff news continues. As such, there’s no way to tell if it’s time to buy the dips or sell the rips. Ultimately, it depends on your asset allocation and how much risk you’re willing to bear.

In this piece, we’ll check out two growth stocks I once viewed as crazy-expensive that are now starting to look just mildly expensive. Either way, their more palatable valuations seem worth getting behind seeing as nothing major has changed about the longer-term growth narrative amid the latest tariff-fuelled fall in stocks.

Tesla

Tesla (NASDAQ:TSLA) is magnificent no more, unfortunately, after crashing over 50% in short order. Of course, if you were on vacation and tuned out from markets over the past four months, you probably aren’t all too moved by recent events, given the swift double in the share price was quickly followed by a halving — easy gains, easy losses.

And while the headlines surrounding Elon Musk’s billions of lost wealth in these past few months are, indeed, shocking, the recent crash in TSLA shares isn’t all too remarkable in the grander scheme of things. As Tesla shareholders grapple with the wave of price target cuts, I do think many are losing sight of the long-term game plan. 

Of course, the favorability of the brand has sunk among Americans lately, thanks to Elon Musk’s involvement in politics. And while many may be turning away from the EV brand, I still think the company remains an AI robotics play that could pay off in the coming decades. Whether we’re talking robotaxis, increased automation in factories, or consumer-grade robots, there’s no shortage of forward-looking growth prospects.

At 84.7 times forward price-to-earnings (P/E), the stock is still arguably expensive, but compared to the embodied AI prospects, perhaps the somewhat-less-crazy-expensive multiple is now worth paying.

Nvidia

Nvidia (NASDAQ:NVDA) stock looks quite cheap after falling into a bear market. The hefty discount on the GPU juggernaut may not last, however, with shares soaring over 5% on Friday in a broad relief recovery day for markets.

Indeed, opportunities to buy NVDA stock on weakness don’t tend to last all too long, making the name worth braving on the way down rather than the way up for value-minded investors. Either way, NVDA stock traded at around 25.8 times forward P/E at its lowest point last week — that’s cheaper than Sherwin-Williams (NYSE:SHW), the paint and coatings company!

If Trump tariff talks continue next week, perhaps you’ll get another shot to buy NVDA stock at a nearly 30% drop. Either way, I think investors are discounting Nvidia’s ability to dominate as next year’s Rubin chip turns the next page on the AI revolution playbook. Tariffs or not, Nvidia stock has grown into its previously high multiple, in my view. With the big GTC conference up ahead, I’d not be surprised if Nvidia powers its way to new highs, pulling the Magnificent Six stocks along with it.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.