AI Stocks: Falling Knife or Once-in-a-Decade Buying Opportunity?
AI stocks have slipped in recent weeks.
Overview
In recent years, when investors looked for major growth potential, they turned to artificial intelligence (AI) stocks. These players have driven gains in the S&P 500 as AI has been viewed as the next game-changing technology. With the ability to make companies more efficient and innovative, AI could supercharge earnings growth.
And some players, such as chip designer Nvidia (NASDAQ: NVDA) and cloud computing giant Amazon, have already generated significant revenue growth as they've been playing key roles in the early stages of the AI boom. A look at funds invested in a broad range of AI players further illustrates this point. The Dan Ives Wedbush AI Revolution ETF has jumped nearly 50% from its launch a year ago, and the iShares Semiconductor ETF has soared more than 200% over the past three years.
Details
But, in recent times, the path of AI stocks hasn't been as surefooted as it was in the past. The general geopolitical and economic environment has made investors more cautious. And investors have questioned the level of spending by tech companies on AI -- and whether it will all be worthwhile.
Source
Originally published at www.fool.com.