3 Top AI Stocks to Watch in October: They May Set the Tone for the Rest of the Market.
They may offer us important clues about what’s next for AI.
Overview
September was a lackluster month for stocks, with the S&P 500 slipping 0.4% -- so this year, the market experienced the "September Effect," or the weakness that often happens during that month. But the decline wasn't necessarily random, and instead, it may have been in response to various concerns.
Investors have worried about the general economic environment amid rising inflation and turmoil in Iran. And they've also questioned the levels of spending in artificial intelligence (AI) infrastructure — any slowdown here could spark a significant decline in AI stocks. These elements have put pressure on the market periodically this year and likely contributed to last month's decline.
Details
What will happen next? Earnings season will soon kick off, and tech giants, the players that have led market direction in recent years, are expected to begin reporting later in the month. The tech sector has the most companies delivering positive earnings-per-share guidance for the third quarter, according to FactSet Insight. That's 44 compared to the five-year average of about 23 for the industry.
Source
Originally published at www.fool.com.