For the last two years, both the S&P 500 and Nasdaq Composite posted gains well in excess of 20%. This scorching hot momentum initially carried into 2025 too, but more recently, the markets have started to take a breather.

First it was DeepSeek, a Chinese artificial intelligence (AI) start-up that brought shockwaves after it claimed to have built highly sophisticated models using older architecture compared to what big tech companies in the U.S. have deployed.

Following on the heels of the DeepSeek drama came a series of tariffs instituted by the new Trump administration. Given the implications tariffs can have on trade negotiations and geopolitics, investors have been wary of how these new policies will impact economic growth.

As stocks continue sliding off a cliff, it can be difficult to discern which dips may be buying opportunities hiding in plain sight. According to Dan Ives, who leads technology research at Wedbush Securities, two AI behemoths in particular are trading in the "sweet spot" right now.

Let's explore what companies Ives recently called out as compelling opportunities and assess why scooping up shares right now could prove to be a savvy decision for long-term investors.

1. Palantir Technologies

The first company on Ives' list is Palantir Technologies (PLTR -1.77%), a developer of enterprise software solutions sold to both the private and public sectors. Since the company released its Artificial Intelligence Platform (AIP) suite in 2023, Palantir has witnessed an acceleration across both its top line and profitability profile.

PLTR Revenue (Quarterly) data by YCharts

The successful launch of AIP has helped Palantir land on the radar of more institutional investors, and as such, the company has earned more coverage among Wall Street research analysts. While this is all good news for Palantir's business, investors have had little in the way of optimal buying opportunities.

The reason I say this is because Palantir stock gained 340% last year -- making it the top performer in the S&P 500. And while shares had gained as much as 65% this year, the stock has recently dropped by a considerable margin.

A combination of insider selling as well as changes to the Pentagon's budget are the primary culprits driving Palantir's sell-off right now. Despite these factors, Ives sees Palantir's current valuation levels as a benefit -- and I agree. Shares are now down more than 30% from all-time highs, yet nothing concrete has actually changed in the company's long-term growth prospects.

While Palantir has emerged as an expensive name to own among AI growth stocks, dips of this magnitude are few and far between. The company is doing a nice job laying the groundwork for becoming an integral part of the AI software ecosystem, and in my eyes it's now a good time to scoop up shares as the company's valuation normalizes a bit.

Image source: Getty Images.

2. Nvidia

It probably shouldn't come as a surprise that Ives called out chip leader Nvidia (NVDA -8.69%) as a good name to own right now. For the last few years, it's been almost impossible to lose money owning Nvidia stock. Companies all around the world have been pounding the door to buy as much of the company's graphics processing units (GPUs) as they can.

In fact, many of the company's "Magnificent Seven" cohorts, including Meta Platforms, Microsoft, Alphabet, Tesla, and Amazon, frequently shout out to Nvidia during their earnings calls -- signaling to investors just how integral the company's hardware and software is to the broader generative AI movement.

Nevertheless, when DeepSeek made its grand entrance into the AI realm in late January, Nvidia stock started to slide. The driving force behind the sell-off was that DeepSeek claimed to have used older, less capable GPUs from Nvidia to build its models -- causing some investors to worry if the company's newer models, Hopper and Blackwell, were worth the price tag.

Over the last few weeks, companies have been reporting earnings results for the fourth quarter and full year of calendar 2024. If the big tech companies I referenced above told us anything, it's that investment in AI infrastructure isn't going away. The reported $325 billion of AI capital expenditures allotted for 2025 alone should serve as a bellwether for Nvidia as the company scales its new Blackwell chipware and begins focusing on an even newer architecture called Rubin.

NVDA PE Ratio (Forward) data by YCharts

Despite Nvidia's continuation of impressive data center growth, underscored by its market-leading GPU empire, shares are trading at levels incongruent with a high-octane growth stock.

Right now, Nvidia's forward price-to-earnings (P/E) multiple of 26.7 is its lowest level in about a year. To me, this is an incredibly rare opportunity to scoop up shares of Nvidia as it trades at a meaningful discount to historical levels -- especially when you layer on the company's current growth rates and its trajectory given strong secular tailwinds.