Earnings From Taiwan Semiconductor and ASML Show Soaring Demand, So Why Are AI Stocks Falling? (And Here's What Investors Should Do Next.)
AI stocks have driven stock market direction.
Overview
Artificial intelligence (AI) stocks have been on fire in recent years, leading the S&P 500 higher in this bull market. Investors rushed to get in on these players early in their growth stories, and this move paid off: Companies such as Nvidia, Palantir Technologies, and Alphabet have seen revenue climb thanks to their AI businesses, and their stock prices have followed.
But, over the past few months, investors have thought twice before picking up AI stocks -- even as messages from the biggest players remain positive. The latest example unfolded last week, as Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) and ASML (NASDAQ: ASML) reported earnings that beat estimates and spoke of soaring demand. Yet their shares, as well as shares of other AI players, fell.
Details
Why are AI stocks declining? And should we buy on the dip or stay away? Let's find out.
Source
Originally published at www.fool.com.