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2 Top Artificial Intelligence (AI) Stocks to Buy on the Dip

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The artificial intelligence (AI) opportunity could help many investors meet or exceed their retirement goals. AI is impacting every industry as it promises to speed up innovation and labor productivity. This could add trillions to the economy, according to PwC. Here are two AI stocks to consider buying on the dip.

Image source: Getty Images.

1. C3.ai

Palantir Technologies is the star of AI software right now. But the AI opportunity is much bigger than one company. This is evident when you look at the accelerating growth of Palantir’s smaller rival C3.ai (AI -1.39%).

While C3.ai doesn’t have the scale or profitability of Palantir, its revenue growth could lift the stock higher. C3.ai’s revenue grew 26% year over year in the most recent quarter, an improvement from virtually zero growth in the same quarter two years ago.

C3.ai will benefit from its new partnership with Microsoft, which will significantly expand its sales force to reach more customers worldwide. C3.ai’s solutions are available on all the leading cloud platforms. In the last quarter, it closed 59 agreements through its partners.

The U.S. military is adopting more AI technology, which is benefiting the company. Over the past year, C3.ai closed 51 agreements with the federal government. The U.S. Air Force Rapid Sustainment Office raised its contract ceiling with C3.ai to $450 million, up from the initial ceiling of $100 million.

These deals highlight the competitive strengths of C3.ai’s AI applications. C3.ai’s software is good at predictions and forecasts that can detect potential points of failure, while Palantir excels when it can take a large amount of unorganized data and make sense of it to facilitate better decision-making. Their different strengths mean both companies can deliver returns for their shareholders.

The enterprise AI opportunity — essentially, using AI to help companies draw insights and make decisions — is going to stretch into the trillions over the long term, and C3.ai will get its piece. Market researcher McKinsey reports the market for AI software and services was $85 billion in 2022 and is expected to reach a range of $1.5 trillion to $4.6 trillion by 2040.

C3.ai stock reached a high of $45 last year before selling off to its current share price of $28. That brings its price-to-sales (P/S) multiple down to 9. Since the end of 2022, the stock has traded at a P/S multiple ranging from 4 to 19.

The stock is very volatile, but analysts on Yahoo Finance! expect the company’s revenue to grow from $389 million in fiscal 2025 (which ended in April) to $551.2 million by fiscal 2027. That growth could lift the stock proportionally.

2. Marvell Technology

On the hardware side, data centers need specialized networking products and processors for transferring data at high speeds for training AI. This is benefiting Marvell Technology (MRVL -2.06%), which posted robust growth in revenue to start the year. The stock has been trending higher over the past five years, but after reaching a high of $127 at the start of 2025, the shares have pulled back to $73. This makes it a great buy based on the opportunities ahead.

Marvell’s total revenue reached a quarterly record of $1.9 billion in fiscal Q1, representing a 4% sequential increase over the previous quarter. Notably, this was a 63% jump in revenue over the year-ago quarter.

Marvell’s custom chip solutions sent its data center revenue up 76% year over year in fiscal Q1. The company should benefit from a long-term relationship with Amazon Web Services, as Amazon recently acquired a stake in Marvell stock. Marvel also is working with Nvidia‘s NVLink Fusion platform to help data centers run AI workloads more efficiently.

Marvell’s chip integration in NVLink will expand its data center opportunity, which the company previously estimated at $75 billion. In June, management updated its total addressable market estimate to $94 billion in 2028. This estimate includes opportunities in custom chips, network switching, interconnects, and data storage.

Analysts on Yahoo! Finance expect Marvell’s revenue to grow from $5.7 billion in fiscal 2025 (which ended in January) to nearly $9.8 billion by fiscal 2027.

Despite the opportunity ahead, the stock is trading at a price-to-earnings multiple of 23 and just over 10 times fiscal 2030 earnings estimates. Investors looking for a sleeper AI stock should follow Amazon and consider buying some shares.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Amazon, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool recommends C3.ai and Marvell Technology and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.



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Measuring Machine Intelligence Using Turing Test 2.0

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In 1950, British mathematician Alan Turing (1912–1954) proposed a simple way to test artificial intelligence. His idea, known as the Turing Test, was to see if a computer could carry on a text-based conversation so well that a human judge could not reliably tell it apart from another human. If the computer could “fool” the judge, Turing argued, it should be considered intelligent.

For decades, Turing’s test shaped public understanding of AI. Yet as technology has advanced, many researchers have asked whether imitating human conversation really proves intelligence — or whether it only shows that machines can mimic certain human behaviors. Large language models like ChatGPT can already hold convincing conversations. But does that mean they understand what they are saying?

In a Mind Matters podcast interview, Dr. Georgios Mappouras tells host Robert J. Marks that the answer is no. In a recent paper, The General Intelligence Threshold, Mappouras introduces what he calls Turing Test 2.0. This updated approach sets a higher bar for intelligence than simply chatting like a human. It asks whether machines can go beyond imitation to produce new knowledge.

From information to knowledge

At the heart of Mappouras’s proposal is a distinction between two kinds of information, non-functional vs. functional:

  • Non-functional information is raw data or observations that don’t lead to new insights by themselves. One example would be noticing that an apple falls from a tree.
  • Functional information is knowledge that can be applied to achieve something new. When Isaac Newton connected the falling apple to the force of gravity, he transformed ordinary observation into scientific law.

True intelligence, Mappouras argues, is the ability to transform non-functional information into functional knowledge. This creative leap is what allows humans to build skyscrapers, develop medicine, and travel to the moon. A machine that merely rearranges words or retrieves facts cannot be said to have reached the same level.

The General Intelligence Threshold

Mappouras calls this standard the General Intelligence Threshold. His threshold sets a simple challenge: given existing knowledge and raw information, can the system generate new insights that were not directly programmed into it?

This threshold does not require constant displays of brilliance. Even one undeniable breakthrough — a “flash of genius” — would be enough to demonstrate that a machine possesses general intelligence. Just as a person may excel in math but not physics, a machine would only need to show creativity once to prove its potential.

Creativity and open problems

One way to apply the new test is through unsolved problems in mathematics. Throughout history, breakthroughs such as Andrew Wiles’s proof of Fermat’s Last Theorem or Grigori Perelman’s solution to the Poincaré Conjecture marked milestones of human creativity. If AI could solve open problems like the Riemann Hypothesis or the Collatz Conjecture — problems that no one has ever solved before — it would be strong evidence that the system had crossed the threshold into true intelligence.

Large language models already solve equations and perform advanced calculations, but solving a centuries-old unsolved problem would show something far deeper: the ability to create knowledge that has never existed before.

Beyond symbol manipulation

Mappouras also draws on philosopher John Searle’s famous “Chinese Room” thought experiment. In the scenario, a person who does not understand Chinese sits in a room with a rulebook for manipulating Chinese characters. By following instructions, the person produces outputs that convince outsiders he understands the language, even though he does not.

This scenario, Searle argued, shows that a computer might appear intelligent without real understanding. Mappouras agrees but goes further. For him, real intelligence is proven not just by producing outputs, but by acting on new knowledge. If the instructions in the Chinese Room included a way to escape, the person could only succeed if he truly understood what the words meant. In the same way, AI must demonstrate it can act meaningfully on information, not just shuffle symbols.

Image Credit: top images – Adobe Stock

Can AI pass the new test?

So far, Mappouras does not think modern AI has passed the General Intelligence Threshold. Systems like ChatGPT may look impressive, but their apparent creativity usually comes from patterns in the massive data sets on which they were trained. They have not shown the ability to produce new, independent knowledge disconnected from prior inputs.

That said, Mappouras emphasizes that success would not require constant novelty. One true act of creativity — an undeniable demonstration of new knowledge — would be enough. Until that happens, he remains cautious about claims that today’s AI is truly intelligent.

A shift in the debate

The debate over artificial intelligence is shifting. The original Turing Test asked whether machines could fool us into thinking they were human. Turing Test 2.0 asks a harder question: can they discover something new?

Mappouras believes this is the real measure of intelligence. Intelligence is not imitation — it is innovation. Whether machines will ever cross that line remains uncertain. But if they do, the world will not just be talking with computers. We will be learning from them.

Final thoughts: Today’s systems, tomorrow’s threshold

Models like ChatGPT and Grok are remarkable at conversation, summarization, and problem-solving within known domains, but their strengths still reflect pattern learning from vast training data. By Mappouras’s standard, they will cross the General Intelligence Threshold only when they produce a verifiable breakthrough — an insight not traceable to prior text or human scaffolding, such as an original solution to a major open problem. Until then, they remain powerful imitators and accelerators of human work — impressive, useful, and transformative, but not yet creators of genuinely new knowledge.

Additional Resources

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UTM Celebrates Malaysia’s Youngest AI Researcher Recognised at IEEE AI-SI 2025 – UTM NewsHub

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KUALA LUMPUR, 28 August 2025 – Universiti Teknologi Malaysia (UTM) proudly hosted the Institute of Electrical and Electronics Engineers (IEEE) International Conference on Artificial Intelligence for Sustainable Innovation (AI-SI) 2025, themed “Empowering Innovation for a Sustainable Future.” The conference gathered global experts, academics, and industry leaders to explore how Artificial Intelligence (AI) can address sustainability challenges. Among its highlights was the remarkable achievement of 17-year-old Malaysian researcher, Charanarravindaa Suriess, who was celebrated as the youngest presenter and awarded Best Presenter for his groundbreaking paper on adversarial robustness in neural networks. His recognition reflected not only individual brilliance but also Malaysia’s growing strength in the global AI research landscape.

Charanarravindaa’s presentation, titled “Two-Phase Evolutionary Framework for Adversarial Robustness in Neural Networks,” introduced an innovative framework designed to improve AI systems’ ability to defend against adversarial attacks. His contribution addressed one of the most pressing challenges in AI, ensuring resilience and trustworthiness of machine learning models in real-world applications. Born in Johor Bahru, his journey into science and computing began early; by primary school, he was already troubleshooting computers and experimenting with small websites. At just 15 years old, he graduated early, motivated by a passion for deeper challenges. Participation in international hackathons, including DeepLearning Week at Nanyang Technological University (NTU) Singapore, strengthened his resolve and provided the encouragement that led to his first academic paper, now internationally recognised at IEEE AI-SI 2025.

Charanarravindaa Suriess, 17, youngest and Best Presenter at IEEE AI-SI 2025

Beyond academia, Charanarravindaa has also demonstrated entrepreneurial spirit by founding Cortexa, a startup dedicated to advancing AI robustness, architectures, and applied AI for scientific discovery. His long-term vision is to integrate artificial intelligence with quantum computing and theoretical physics to expand the boundaries of knowledge. This ambition is a testament to the potential of Malaysia’s youth in contributing to frontier technologies. His recognition at IEEE AI-SI 2025 reflects IEEE’s mission of advancing technology for humanity, where innovation is seen as a universal endeavour not limited by age. By honouring a young researcher, IEEE underscored its commitment to empowering future generations of scientists and innovators to shape technology for global good.

Charanarravindaa Suriess, 17, recognised as the youngest participant and Best Presenter at IEEE AI-SI 2025
Charanarravindaa Suriess, 17, recognised as the youngest participant and Best Presenter at IEEE AI-SI 2025

During the conference, the Faculty of Artificial Intelligence (FAI), UTM, represented by Associate Professor Dr. Noor Azurati Ahmad, extended an invitation to Charanarravindaa to explore possible research collaborations. This initiative aligns with FAI’s vision to be a leader in AI education, research, and innovation, with a particular focus on trustworthy, robust, and sustainable AI. Early discussions centred on aligning his research interests with UTM’s expertise in advanced architectures and digital sustainability. Such collaboration exemplifies how institutions and young talent can come together to accelerate innovation, while also strengthening Malaysia’s position as an emerging hub for AI research and talent cultivation.

At the national level, this achievement resonates strongly with the Malaysia National Artificial Intelligence Roadmap (2021–2025), which identifies talent development as a central pillar in building an AI-ready nation. Prime Minister Datuk Seri Anwar Ibrahim has repeatedly highlighted the urgency of nurturing local talent to enhance competitiveness and leadership in the global digital economy. Charanarravindaa’s success demonstrates tangible progress in this direction, showcasing how Malaysia can produce young innovators capable of contributing to both national aspirations and international scientific advancement. Through platforms such as IEEE AI-SI 2025, UTM reaffirms its role as a catalyst for excellence in AI research and talent development, embodying its mission to prepare the next generation of scholars and innovators who will drive sustainable futures.



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Databricks at a crossroads: Can its AI strategy prevail without Naveen Rao?

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“Databricks is in a tricky spot with Naveen Rao stepping back. He was not just a figurehead, but deeply involved in shaping their AI vision, particularly after MosaicML,” said Robert Kramer, principal analyst at Moor Insights & Strategy.

“Rao’s absence may slow the pace of new innovation slightly, at least until leadership stabilizes. Internal teams can keep projects on track, but vision-driven leaps, like identifying the ‘next MosaicML’, may be harder without someone like Rao at the helm,” Kramer added.

Rao became a part of Databricks in 2023 after the data lakehouse provider acquired MosaicML, a company Rao co-founded, for $1.3 billion. During his tenure, Rao was instrumental in leading research for many Databricks products, including Dolly, DBRX, and Agent Bricks.



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