Shopping for sturdy, best-in-class know-how and synthetic intelligence shares into weak point is one thing long-term buyers ought to take into account doing to begin March.
The bulls stepped up and acquired shares to defend the Nasdaq’s 200-day transferring common mid-week regardless of escalating assaults in Iran and the encompassing area.
In fact, rather a lot may change over the weekend and within the coming days and weeks given the dynamic and quickly evolving state of affairs within the Center East.
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It doesn’t matter what occurs within the near-term, buyers should keep in mind that shopping for shares amid downturns and chaotic occasions is a confirmed technique over the lengthy haul.
Wall Road has additionally largely shrugged off different conflicts lately.
Purchase AI and Tech Shares On the Dip in March and Maintain
It’s time for buyers to chop by way of the noise and look to the information on the bottom. The 2 issues that transfer the market—earnings and rates of interest—are supporting shares.
Nvidia’s This fall report and outlook confirmed what Wall Road already knew. Regardless of some AI bubble worries, the spending spree is heating up.
AI chip producer Taiwan Semi was the primary large tech agency to lift its 2026 capex steering again in early January to between $52 billion and $56 billion, blowing away 2025’s $40.9 billion.
AI hyperscalers are projected to spend roughly $530 billion in capex this yr, up from round $400 billion final yr. This determine is more likely to maintain climbing after the stellar stretch of steering from the Magazine 7 and past.
The chart under highlights that the outlook for Q1 2026 Tech sector earnings has surged to 24% up from 18% in mid-January and 12% again in early October.
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Wall Road can be excited that earnings development is spreading throughout almost each pocket of the economic system, with 15 out of 16 Zacks sectors set to publish YoY EPS enlargement in 2026.
On the rate of interest entrance, the massive cash remains to be betting that the Fed will minimize charges once more within the again half of 2026.
Now let’s dive into two AI-focused tech shares for buyers to purchase on the dip in March.
Purchase ServiceNow Inventory for Almost 100% Upside?
We’re beginning with the toughest hit of the 2 AI shares, ServiceNow NOW, which is down almost 50% from its January 2025 highs. This implies it gives round 100% upside if it have been to return to these ranges at some future date.
NOW is an ideal instance of the AI-based disruption crushing software program firms. However the digital workflow providers and options agency already expanded deeply into AI over the past a number of years to spice up ServiceNow’s enchantment to enterprise clients racing to innovate.
ServiceNow, which designs software program for IT, customer support, HR, and different enterprise operations, is quickly adapting to AI. The corporate boasts that it’s remodeled into the “AI management tower for enterprise reinvention.”
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ServiceNow can be working straight with AI leaders to include their choices straight into NOW’s portfolio. NOW introduced in January that it deepened its multi-year cope with OpenAI to assist it “energy agentic AI experiences and speed up enterprise AI outcomes.”
The corporate can be actively increasing its partnership with Anthropic to additional combine Claude fashions extra deeply into the ServiceNow AI Platform.
Wall Road is perhaps apprehensive about AI consuming software program’s lunch. However ServiceNow is successfully integrating AI into its enterprise, whereas making offers with a few of the greatest AI innovators. Its 2025 development and NOW’s outlook showcase an organization flexing its enlargement muscular tissues.
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The software program agency posted its fourth-straight yr of between 21% to 24% gross sales development in 2025, reaching $13.28 billion (simply doubling its 2021 complete). This development adopted a interval of even stronger 30% or greater enlargement.
ServiceNow stated it had 244 transactions over $1 million in internet new annual contract worth in This fall 2025, up 40% YoY. It ended 2025 with over 600 clients with greater than $5 million in ACV, up 20% vs. 2024.
NOW grew its GAAP earnings by 22% to $1.67 a share, up from simply $0.23 in 2021, with its adjusted EPS 27% greater. The chart under highlights NOW’s spectacular long-term earnings development outlook.
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ServiceNow is projected to develop its income by 20% in 2026 and 18% in 2027 to assist increase its adjusted earnings by 18% and 20%, respectively. Plus, its earnings estimates have improved since its This fall launch on the finish of January.
ServiceNow flexed its monetary firepower and durable stability sheet when it introduced an extra $5 billion below its share repurchase program. CEO Invoice McDermott additionally purchased $3 million price of NOW shares not too long ago, saying there was “no higher entry level.”
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NOW shares have greater than tripled the Tech sector because it went public in 2012, hovering roughly 2,300%. This huge run contains its 50% tumble from its 2025 highs. The tech inventory discovered some help not too long ago on the technical vary highlighted above after hitting its most oversold RSI ranges prior to now decade.
Thursday’s leap pushed it just under its 50-day transferring common. Traders who purchase NOW inventory have an opportunity to just about double their cash if it will definitely returns to its 2025 highs—(its common Zacks value goal gives roughly 70% upside).
Why AI Infrastructure Inventory Celestica is a Should-Purchase Down 25%
Celestica Inc. CLS is a number one know-how manufacturing powerhouse that designs and builds high-tech digital options for AI information heart infrastructure and different superior applied sciences. CLS struggled for years following its late Nineteen Nineties IPO. However the AI arms race helped Celestica flip the script fully.
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CLS is a behind-the-scenes tech manufacturing powerhouse that designs and builds high-tech electronics like super-fast AI servers, networking switches, and data-center {hardware} for large clients, together with a number of AI hyperscalers. The electronics manufacturing firm additionally advantages from the long-term upside throughout aerospace and protection, telecom, healthcare tech, provide chain options, and past.
The info heart infrastructure standout grew its income by 29% in 2025 to $12.39 billion, extending its run of big AI-boosted enlargement. In actual fact, CLS greater than doubled its income between 2021 and 2025. Plus, it grew its adjusted earnings by 56% final yr and its GAAP EPS by over 90%, after averaging 65% GAAP EPS development between 2021 and 2024.
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Celestica issued strong steering for 2026 in late January as “demand for AI-related information heart applied sciences continues to strengthen.” CLS expects its 2026 income development trajectory to be “sustained into 2027.”
CEO Rob Mionis stated in ready This fall remarks that CLS is continuous help its clients’ long-term AI infrastructure investments. This backdrop is why CLS is growing its deliberate capital investments to $1 billion in 2026, which it expects to completely fund organically by way of its working money circulate.
The pick-and-shovels AI inventory is projected to develop its income by 37% in 2026 and 39% in 2027 to succeed in $23.66 billion, almost double 2025’s $12.39 billion.
Celestica is projected to increase its adjusted earnings by 46% and 43%, respectively. The corporate’s post-This fall earnings revisions assist it earn a Zacks Rank #2 (Purchase). Plus, 15 of the 18 brokerage suggestions Zacks has for CLS are “Sturdy Buys.”
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The behind-the-scenes AI inventory has skyrocketed ~3,000% prior to now 5 years, crushing the Zacks Tech sector’s 100%. This run features a 220% climb prior to now 12 months.
Traders who missed that rally have a possibility to purchase Celestica down roughly 25% from its November highs. In the meantime, its common Zacks value goal represents 34% upside from its present value.
Celestica’s current pullback, coupled with its stellar earnings development outlook, has Celestica buying and selling 50% under its highs at 30.0X ahead 12-month earnings. CLS discovered patrons at its pre-October breakout highs and its 200-day transferring common earlier this week.
Now is perhaps the time for merchants and long-term buyers to purchase this growth-heavy AI infrastructure inventory at a probably large low cost.
Zacks’ Analysis Chief Names “Inventory Most More likely to Double”
Our group of specialists has simply launched the 5 shares with the best likelihood of gaining +100% or extra within the coming months. Of these 5, Director of Analysis Sheraz Mian highlights the one inventory set to climb highest.
This prime decide is a little-known satellite-based communications agency. Area is projected to change into a trillion greenback trade, and this firm’s buyer base is rising quick. Analysts have forecasted a serious income breakout in 2025. In fact, all our elite picks aren’t winners however this one may far surpass earlier Zacks’ Shares Set to Double like Hims & Hers Well being, which shot up +209%.
Free: See Our High Inventory And 4 Runners Up
Celestica, Inc. (CLS) : Free Inventory Evaluation Report
ServiceNow, Inc. (NOW) : Free Inventory Evaluation Report
This text initially revealed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
