Artificial intelligence (AI) stocks have recently experienced a downturn, with notable declines in companies such as C3.ai Inc. (ticker: AI) and Caterpillar Inc. (ticker: CAT).

In September 2024, Goldman Sachs observed an 11% decline from the year's peak in its Broad AI basket, which includes major tech firms like Nvidia, Microsoft, and Alphabet. Despite this, Goldman Sachs recommended buying the dip, citing strong fundamentals and anticipated lower interest rates as supportive factors for AI investments.

Additionally, the AI sector has seen a surge in exchange-traded funds (ETFs) focusing on AI. By October 2024, more than a third of the two dozen AI-related ETFs were launched that year, collectively managing $4.5 billion in assets. This trend indicates growing investor interest in AI, despite recent market volatility.

Investors should consider these developments and conduct thorough research before making investment decisions in the AI sector.