The ongoing market volatility has dragged valuations of several growth stocks lower in the past month. While the drawdown could continue in the near term, Canadian investors with a sizeable risk appetite could buy quality growth stocks at a discount in March 2025. In this article, I have identified two artificial intelligence (AI) stocks to scoop up during this market dip. Let’s see why.
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Is this AI stock a good buy?
Valued at a market cap of US$5.9 billion, UiPath (NYSE: PATH) is a tech stock down 87% below all-time highs. The tech stock was under pressure after UiPath, an automation software provider, reported mixed fourth-quarter results and issued cautious guidance.
In the fiscal fourth quarter (Q4) of 2025 (ended in January), it reported revenue of US$424 million, up 5% year over year. It ended fiscal 2025 with an annual recurring revenue of US$1.66 billion, up 14% year over year.
Despite exceeding US$975 million in cloud annual recurring revenue (growing over 50% annually), UiPath’s outlook reflects external pressures. It noted that government sector delays following January’s administration transition have disrupted deal closures, with Chief Executive Officer Daniel Dines explaining that “the government is working through administration priorities.” Additionally, broader economic uncertainty has prompted customers to revisit budget approvals.
For fiscal 2026, UiPath projects revenue of US$1.52 billion, representing more modest growth than consensus estimates. Notably, first-half performance is expected to face macro headwinds.
Chief Operating and Financial Officer Ashim Gupta highlighted that UiPath continues to make significant strides in operational execution and platform innovation. UiPath’s agentic automation products are gaining traction, with the Agent Builder recording the most successful preview in company history and approximately 3,000 agents already created.
UiPath remains financially disciplined, delivering a record Q4 adjusted operating margin of 32% and generating US$328 million in free cash flow for the year. With US$1.7 billion in cash and no debt, the company continues its share-repurchase program, returning US$390 million to shareholders in fiscal 2025.
UiPath is forecast to increase its free cash flow from US$368 million in fiscal 2026 to US$450 million in fiscal 2028. If the stock is priced at 20 times forward FCF, it should gain close to 60% in the next three years.
Is AMD stock undervalued?
Advanced Micro Devices (NASDAQ: AMD) is among the largest semiconductor companies globally. In Q4 of 2024, the chip maker reported revenue of US$7.7 billion, an increase of 24% year over year as it continues to capitalize on the AI revolution and data center expansion.
AMD reported a shift in its revenue mix as data centre sales rose 69% to US$3.9 billion in the December quarter, driven by strong demand for its AI-powered graphic processing units. Meanwhile, client segment revenue jumped 58% to US$2.3 billion as its Ryzen processors gained traction in the personal computer market.
AMD’s adjusted earnings per share rose by 42% year over year to US$1.09 in Q4, while gross margins expanded to 54%, up from 51% in the year-ago period. The stronger margins reflect AMD’s strategic pivot toward higher-value products in the data centre and AI markets.
For Q1, AMD projects revenue of US$7.1 billion, with gross margins holding steady at 54%, suggesting continued momentum despite typical seasonal patterns.
Analysts tracking AMD stock expect adjusted earnings per share to expand from US$3.31 in 2024 to US$6.3 in 2026. Given consensus price targets, Wall Street remains bullish and expects the tech stock to gain over 40% from current levels.
