Rotation Creates Rare Buying Window for AI Stocks on Nasdaq

On May 21, 2026, Motley Fool reports that a recent great rotation out of high-growth AI names has created a rare buying window on the Nasdaq, represented by the US Tech 100. Earlier 2026 outflows driven by geopolitical and revenue concerns had depressed valuations, but renewed corporate earnings and strong AI demand are now attracting buyers back. The article recommends Meta Platforms at roughly 18x forward earnings and Microsoft at about 24x forward earnings, noting Microsoft’s Azure revenue surged 40% year-over-year. It frames the S&P 500’s 78% advance over the past three years as AI-led and positions the pullback as a long-term entry point for bullish investors in AI-exposed tech.