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Plenty of AI stocks trade down from their recent peaks, and the Nasdaq Composite, the tech-heavy index, hit an intraday peak on July 11. The index is down 5.5% from that peak after a recent recovery. Similarly, the VanEck Semiconductor ETF, which is led by the chip stocks that are key in the AI rally, is down 18% from its peak on the same day.

These companies are getting a nice boost thanks to AI, a trend that's likely to continue thanks to their huge addressable markets.

Technology stocks lost some of their luster on the market as heightened expectations about the proliferation of artificial intelligence (AI) technology put companies in this sector under pressure to deliver outsized growth each quarter.