Buy 5 Internet-Centric AI Stocks on the Dip to Boost Portfolio Returns

Zacks reports that the AI-driven bull run has faced headwinds in 2025 due to overvaluation and economic concerns, presenting a buying opportunity in the technology sector. They recommend five internet-centric AI stocks, Arista Networks (ANET), Fastly (FSLY), Five9 (FIVN), HubSpot (HUBS), and Twilio (TWLO), all currently trading at a discount from their 52-week highs and possessing a Zacks Rank #2 (Buy), citing their growth prospects and AI-focused initiatives.

Analysis

The artificial intelligence (AI) sector, following a significant bull run in 2023 and 2024, has encountered considerable headwinds in 2025, attributed to overstretched valuations, inflationary pressures, weak economic data, geopolitical tensions, and concerns over potential tariff and trade policies. This has led to a notable pullback in technology stocks, particularly AI-focused internet companies, creating what is described as a dip-buying opportunity. Five specific internet-centric AI stocks are highlighted: Arista Networks (ANET), Fastly (FSLY), Five9 (FIVN), HubSpot (HUBS), and Twilio (TWLO), all carrying a Zacks Rank #2 (Buy). Arista Networks is trading at a 31.6% discount from its 52-week high, with expected current-year revenue and earnings growth of 18.7% and 12.8% respectively, and a 4% improvement in its current-year earnings consensus estimate in the last 30 days, driven by its EOS Smart AI Suite and demand for high-performance switching. Fastly, discounted by 40.5%, recently launched its Fastly AI Accelerator and forecasts 8.7% revenue and 16.7% earnings growth for 2025, with its 2025 earnings estimate up 9.1% in the past 30 days. Five9, at a 47.6% discount, is benefiting from AI adoption in call centers with its Intelligent CX Platform and expects 9.6% revenue and 11.7% earnings growth this year, alongside a 6.6% upward revision in current-year earnings estimates. HubSpot, trading 30.2% below its peak, is seeing growth from its HubSpot AI integration and multi-hub adoption, projecting 15.4% revenue and 14.9% earnings growth for the current year, with a 2.1% positive earnings estimate revision. Twilio, discounted by 25.3%, is focused on generative AI with its Customer AI technology and expects 7.8% revenue and a strong 22.6% earnings growth for the current year, supported by a 7.1% increase in its current-year earnings estimate and partnerships including with Alphabet's Google Cloud.

Key Decisions for Investors

• Investors may consider the current pullback in AI-focused internet stocks as a strategic entry point, particularly for companies like ANET, FSLY, FIVN, HUBS, and TWLO, which are trading at substantial discounts (25.3% to 47.6%) from their 52-week highs and hold a Zacks Rank #2 (Buy).
• Focus should be placed on entities demonstrating robust AI product development, positive earnings estimate revisions, and solid growth outlooks, such as Arista Networks (18.7% projected revenue growth, 4% earnings estimate uplift) and Twilio (22.6% projected earnings growth, 7.1% earnings estimate uplift).
• It is prudent to closely monitor macroeconomic indicators, inflation trends, and developments in trade policy, as these factors were identified as primary contributors to recent market volatility and could continue to influence the technology sector's performance.