Just caught myself looking at what's happening in the AI and tech space right now, and honestly, there's some interesting stuff developing as we head through April. The weakness we saw in March actually created some solid entry points for patient investors, and I think that's worth revisiting.

Here's what's actually moving markets - earnings and interest rates. That's it. Everything else is noise. And right now, both of those factors are lining up pretty well for the tech sector. The capex spending on AI infrastructure isn't slowing down. We're talking about hyperscalers dumping roughly $530 billion into capex this year, and that number's probably going higher. Taiwan Semi already signaled they're raising their capex guidance to the $52-56 billion range for 2026. That's a massive jump from the $40.9 billion they spent in 2025.

Wall Street's also pricing in continued rate cuts through the back half of 2026, which is tailwinds for growth stocks. And get this - earnings growth projections for Q1 2026 tech sector just surged to 24%, up from 18% in mid-January. Fifteen out of sixteen sectors are expected to post year-over-year EPS expansion in 2026. That's pretty broad-based.

Let me break down two best ai stocks I've been watching that got hit hard but look interesting from a risk-reward perspective.

ServiceNow took a beating - down nearly 50% from its January highs. That's brutal, but it also means there's roughly 100% upside if it returns to those levels. The company's been quietly doing something smart though. Instead of getting disrupted by AI, they're actually integrating it deeply. They just deepened their partnership with OpenAI to power enterprise AI experiences, and they're expanding Claude integration through Anthropic. That's not a company getting left behind - that's a company adapting.

The numbers back it up. ServiceNow posted 21-24% sales growth for the fourth straight year, hitting $13.28 billion in 2025. They had 244 transactions over $1 million in net new annual contract value in Q4, up 40% year-over-year. GAAP earnings grew 22% to $1.67 per share. They're projecting 20% revenue growth in 2026 and 18% in 2027. Plus, the CEO just bought $3 million worth of shares himself, saying there's no better entry point. That tells you something.

Then there's Celestica, which is more of a pick-and-shovels play on the AI infrastructure build-out. This company manufactures the actual hardware - AI servers, networking switches, data center equipment. Down about 25% from November highs, but the fundamentals are getting stronger, not weaker. Revenue grew 29% in 2025 to $12.39 billion. Adjusted earnings jumped 56% last year. They're projecting 37% revenue growth in 2026 and 39% in 2027, which would push them to nearly $23.66 billion.

CLS is increasing capex to $1 billion in 2026 because demand for AI data center tech keeps accelerating. The company's already up roughly 3,000% over the past five years, but it's pulling back from November levels, giving traders and investors another shot at entry.

Look, the best ai stocks right now aren't the ones that are already up 200% this year. They're the ones that got beaten down during the March weakness but have better fundamentals than the market's pricing in. ServiceNow and Celestica both fit that profile. If you're thinking long-term and you can handle volatility, these pullbacks are probably worth taking seriously.