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These 3 AI Stocks Sold Off Hard—Even as Their Outlooks Improved

By Dan Schmidt. Article Published: 9/21/2026.

A sale usually spurs demand for products and services, but in the markets, it often has the opposite effect. When stocks go on sale, investors don’t shop; they flee the store. This recent AI turbulence has sent many investors scrambling to take profits. However, the drawdown has repriced several stocks with highly visible revenue commitments through 2027 and beyond. The result is a more attractive valuation for three stocks at different levels of the AI ecosystem, each backed by continued demand and an improving outlook.

Why the AI Trade Is Wobbling Ahead of the Fed Decision

Forget AI for a minute; the entire market is starting to wobble. The Federal Reserve has raised rates for the first time since 2023 to combat a resurgence in inflation, and the 10-year Treasury yield reached its highest level since 2007 in the days before the Sept. 16 Federal Open Market Committee (FOMC) meeting. Gas prices are soaring, mortgage rates are above 7%, and retail stocks are plunging faster than the Cowboys' Super Bowl odds.

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Nervous sentiment has now trickled into the AI trade, and many of the largest builders are the ones pumping the brakes. Anthropic CEO Dario Amodei recently penned a post calling for a slowdown in frontier capabilities so evaluators and governments can catch up and coordinate. An industry leader asking the government to regulate its rivals is a tale as old as time, but public backlash against AI is growing. A recent YouGov poll showed that 63% of Americans would oppose building a new data center in their community. A majority of both AI users and non-users also agree that data center construction contributes to rising energy prices.

Higher global yields and potential slowdowns in frontier AI training have hit the AI trade hard in recent months. The iShares Semiconductor ETF (NASDAQ: SOXX) is down more than 20% from its June 22 peak as investors price in slower demand for chips, compute and infrastructure. However, pledges and essays aren’t binding legislation, and none of these proposals target deployments or builds that have already been contracted. In an environment where skepticism is prominent but regulatory action is minimal, these three stocks are well positioned to thrive.

3 AI Infrastructure Stocks That Recently Raised Guidance

The following three stocks all passed a multipart screen: Each currently trades at least 20% below its 2026 high despite raising fiscal 2026 guidance in its most recent earnings report. Each now trades at a compressed multiple ahead of its next quarterly report, which is scheduled within the next six weeks.

Celestica: Institutional Entry Point Available for New Investors

Celestica Inc. (NYSE: CLS) operates in the systems segment of the AI trade, providing rack-scale compute and networking hardware for hyperscalers. The stock hit a new all-time high above $472 on June 2 and reported a record quarter when it released Q2 2026 results on July 28, including 62.4% year-over-year (YOY) revenue growth.

Management also raised guidance for the third time in 2026 and now projects full-year 2026 revenue of $20.5 billion and adjusted earnings per share (EPS) of $11.30. Fiscal 2027 revenue growth is also expected to accelerate beyond the 65% pace projected for 2026.

Despite the strong results, the stock faded over the summer, dropping from $472 to below $316 by Sept. 14. CLS now trades at 28 times its full-year 2026 EPS guidance, and the current market price is roughly where institutions bought shares in the company's $3.45 billion offering in August.

The current entry point is intriguing because the stock sits near both the 50-day and 200-day moving averages, which have converged toward a death cross as CLS shares declined. However, the Relative Strength Index (RSI) has returned to bullish territory, and a break above the 50-day moving average could reinvigorate buying activity.

Penguin Solutions: Enticing Valuation in the Memory Bottleneck

Memory has emerged as one of the biggest bottlenecks in the AI trade. Data centers need more memory to handle massive training workloads, and many memory producers are operating at capacity through 2027.

Penguin Solutions Inc. (NASDAQ: PENG) has benefited from the memory crunch, and its Q3 2026 results in July trounced expectations. The top- and bottom-line beats were impressive, but the AI-driven business more than doubled during the period and now accounts for more than 74% of sales. Management also raised guidance for full-year 2026 and 2027.

Penguin Solutions is becoming less reliant on hyperscaler capital as its cloud and enterprise customer bases grow. The stock now trades at about 25 times forward earnings and 14 times its implied 2027 EPS guidance. The Q4 2026 report on Oct. 6 will provide more color on the fiscal 2027 outlook, but for now, the stock is nearly 40% below its record close from July 9.

The downswing has been fierce, but bearish momentum is slowing ahead of the Oct. 6 earnings catalyst. The price has formed a double-bottom pattern between the 50-day and 200-day moving averages, indicating that the long-term trend remains upward. The Moving Average Convergence Divergence (MACD) indicator also suggests that bearish momentum is weakening, and bears could be exiting the stock ahead of the Q4 report.

ACM Research: Export Control Risk Creates Upside Potential

ACM Research Inc. (NASDAQ: ACMR) has the highest risk-reward profile of the three selections because it relies on Chinese capacity expansion as a growth lever.

With export-control threats looming from the Trump administration, a company that derives more than 90% of its revenue from China is squarely in the crosshairs.

However, the Q2 2026 report was stellar: First-half orders more than doubled year over year, and 2026 revenue expectations were raised to $1.125 billion to $1.175 billion.

After a nearly 50% drawdown from its June 30 all-time high, the stock now trades at a price-to-earnings (P/E) ratio of about 30, down from 42 earlier this summer.

China exposure adds significant risk, and with a beta of 1.96, the stock is the most volatile of the three. However, investors looking for a bottom may have found one. The stock’s downtrend was halted at the 200-day moving average, which also marks the low point from July. If the share price bounces off this level and the RSI moves above 50, the stock’s rally could resume to close out the year.