We recently compiled a list of Top 10 AI Stocks to Watch Before a Potential Market Correction. In this article, we’ll take a look at where MicroStrategy Incorporated (NASDAQ: MSTR) ranks in relation to other AI stocks.

That’s the big question, according to Gene Munster, managing partner of Deepwater Asset Management. This revolutionary technology was the catalyst for two years of spectacular gains in the stock markets. With major stock indexes trading near all-time highs, excessive valuations are causing growing nervousness in the investment community.

Nothing has been more impactful than the emergence of artificial intelligence (AI). Although the stock market was boosted by various factors, such as Donald Trump’s victory in November, stock split euphoria, dovish Fed policy and better-than-expected earnings, AI triggered breathtaking valuations. Nonetheless, a potential correction from current highs is on the horizon.

“I agree that Nvidia will have a day of reckoning – and chip stocks, the whole business. And the question for us is not, ‘Will the bubble burst?’ It’s : “How far will we go before the bubble bursts” says Munster.

While the overall market has declined significantly since its peak late last year, Munster insists it will take two more years of solid gains before a potential bubble bursts. According to the technology analyst, the bursting of the bubble could lead to a 30% drop in the technology-heavy NASDAQ index due to the end of the hype over artificial intelligence.

Stock market momentum has softened significantly in recent months, particularly among the big five tech stocks, and the market is signaling that the extraordinary growth and gains of 2024 will be difficult to replicate in 2025. Amid these stock market concerns, growth, investors should focus on AI trading at depressed valuations and in companies supported by strong financials and long-term growth opportunities.

Bank of America analysts remain optimistic about the outlook for the U.S. software market, despite slowing growth rates in recent months. While the sector grew 59% in 2023, attributed to the AI ​​frenzy, the growth rate slowed to 23% in 2024. However, given that the multiples are still lower than expected, there are still opportunities to unlock.

“Revenue multiples and growth expectations remain below 5-year median and pre-Covid levels,” the bank said in its January 14 report, highlighting the potential of three secular themes for 2025: Agentic AI, the growth of enterprise IT budgets and sustained growth. migration to the cloud.