Down 30%, Is this Artificial Intelligence (AI) Stock a Screaming Buy?

Soaring Semiconductor Stocks: In 2026, semiconductor stocks have seen significant growth, boosted by the AI infrastructure build-out and shortages in memory chips, with the iShares Semiconductor ETF doubling in value.
Software Stocks Underperform: AI stocks focusing on software have lagged, with the iShares Expanded Tech-Software Sector ETF down 16%, underperforming the S&P 500.
Axon Enterprise’s Performance: Once a heavyweight in the market, Axon Enterprise, known for law enforcement technologies like TASERs and body cameras, has struggled in recent years with its stock falling by 30% from its August 2025 peak.
Axon’s AI and Innovative Growth: Despite its struggles, Axon has shown strong growth driven by its software and AI products. Revenue from AI products surged over 700% and it has expanded into drones through its acquisition of Dendrone.
Positive Catalysts for Axon: The stock recently climbed after President Trump reportedly bought between $1 million and $5 million worth of Axon shares, along with significant federal contract requests.
Considerations for Axon Investment: Despite Axon’s strong performance and potential, The Motley Fool’s Stock Advisor analysts do not currently recommend it and instead suggest investing in other stocks with better growth possibilities, though Axon remains potentially attractive.