3 AI Stocks to Still Buy If Inflation Stays Sticky
Nvidia, CoreWeave, and Broadcom should be on your shopping list.
Overview
The U.S. inflation rate rose 4.2% year over year in May, marking its highest rate in three years and staying far above the Fed's target of 2%. To rein in inflation, the Fed -- which kept its benchmark rates unchanged in the first half of the year -- might need to raise rates again.
Higher rates could drive investors away from higher-growth AI stocks and toward more conservative investments. However, I believe three of those AI stocks -- Nvidia (NASDAQ: NVDA), CoreWeave (NASDAQ: CRWV), and Broadcom (NASDAQ: AVGO) -- will still be worth buying on any short-term softness caused by inflation or fears of higher rates.
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Originally published at www.fool.com.
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