3 Chip Giants Still Worth Buying Despite Massive Gains
One of these stocks is up more than 1,100% over the past 12 months.
3 Chip Giants Still Worth Buying Despite Massive Gains
Overview
The S&P 500 is overvalued, according to its cyclically adjusted price-to-earnings (CAPE) ratio, which is historically high at 41. That is the highest it's been since the 1999-2000 dot-com boom. We all know what happened after that peak.
Are we on a similar track right now? That is impossible to know, because this is a different market and the current boom is generated more by real earnings, thanks mainly to AI, than speculation.
Details
But what it does mean is that tech and AI stocks with high valuations have little room for error, so investors should be careful to look at the various valuation metrics, like the P/E ratio, before piling into a high-growth stock.
Source
Originally published at www.fool.com.
