AI Stock Euphoria Has Bulls Seeing Some Opportunities
Skeptics had long warned that artificial intelligence-related stocks were in a bubble. Now that some of the froth has come off, bulls see an opportunity.
Tweet on AI stock share fluctuation
Shares in makers of AI hardware including Dell Inc., Super Micro Computer Inc., ARM, and Nvidia have come under huge selling pressure in recent months, Bloomberg reports#ai #stock #chips https://t.co/dsv9xhGRwX
— The_Journalbiz (@the_journalbiz) August 14, 2024
Bloomberg news on AI stocks
Shares in makers of AI hardware and infrastructure — including Dell Technologies Inc., Super Micro Computer Inc., ARM Holdings Plc. and Nvidia Corp. — have come under huge selling pressure in recent months, bringing their valuations back down to earth. And with most of their big customers planning to continue spending billions of dollars on AI, some say that it’s time to selectively get back in.
“The AI moves were certainly dramatic, but they’ve moved back to where they can stabilize for the balance of the year,” said Rob Sluymer, technical strategist at RBC Wealth Management. “Momentum indicators have gone from overbought to oversold, and now that positions have been unwound, there’s an opportunity for traders to take positions.”
Nvidia shares are up about 20% from an August low, while Bank of America Corp.’s most recent client data showed inflows into tech for the first week in four.
