4 AI Stocks Are Joining the S&P 500: Buy, Hold, or Pass?
Sandisk, Palo Alto Networks, Dell, and Arista are all set to join the S&P 500.
Overview
The S&P 500 index is already a bit tech-heavy, with over a third of its constituents in the sector, but it's about to see that number pushed higher with four new AI stocks set to be added to the index later this month. Let's take a look at the S&P's newest members and whether investors should buy, hold, or pass on these stocks.
One of the best-performing stocks in the market this year, Sandisk (NASDAQ: SNDK) has been riding the memory supercycle to huge revenue growth and a robust gross margin. The company is a pure-play NAND (flash) memory maker and has benefited from the current supply-demand imbalance in the industry.
Details
NAND supply remains constrained as the big three memory makers continue to put most of their efforts and resources into DRAM (dynamic random access memory) and specifically high bandwidth memory (HBM). At the same time, demand for flash continues to soar from the need for massive solid-state drives (SSDs) that store training data.
Source
Originally published at www.fool.com.