Last week, the Nasdaq Composite index entered market correction territory. This is defined as a drawdown of 10% or more, typically occurring once a year. A bear market is when stocks have fallen by more than 20% and happens much less frequently.
Many of the stocks driving this correction are related to the artificial intelligence (AI) boom and are down much more than 10%. However, these stocks — such as Nvidia — still look like very risky buys if you are worried about an AI-induced bear market like I am. Instead of buying the dip in these risky AI winners, investors should look for stocks not solely focused on AI.
Missed AI’s “Act 1”? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
Here are two stocks I wouldn’t hesitate to buy if this Nasdaq correction moves into deeper territory.
1. Growing market share in international payments
One Nasdaq stock that may get caught up in a broad market drawdown is Remitly Global (NASDAQ: RELY). Its business should see minimal impact in any bear market or economic recession.
Remitly is a platform for international remittances focused on the U.S. market. It is a digital-first platform built on modern software, which helps it lower prices versus competitors like Western Union. Last quarter, active customers grew 17% year over year to 10.3 million, driving revenue up 22% to $510 million.
In the beginning, Remitly focused on people who wanted to send money from the U.S. to destinations such as Mexico, India, and the Philippines. Now, it is working with large-value senders across new corridors, as well as business customers. It now has 30,000 business customers, having launched its official product only in 2025. These high-value senders could offer durable customer relationships with Remitly.
Remitly’s stock fell after its Q3 earnings report, despite posting revenue growth yet again above 20%. Management is increasing its buybacks, and the stock now trades at a cheap forward price-to-earnings ratio (P/E) of 12.1. Whatever happens with AI, Remitly should be able to continue growing its market share in international remittances, leading to strong stock performance relative to today’s prices.
2. Diversified revenue away from AI
This second stock may come as a surprise, but I think it actually will benefit if the AI infrastructure build-out slows down. It is Amazon (NASDAQ: AMZN), the technology giant and the world’s largest cloud computing provider. Shares have not dipped along with other AI companies, but if they do, I think it would present a buying opportunity.
