Micron, Nvidia, and the September Effect: What 98 Years of Data Say Investors Should Do
September can be a tough month for stocks, but for AI investors looking at Micron and Nvidia, this may be a better time to check the fundamentals than to panic over the calendar.
Overview
The September Effect has a reputation for making investors nervous. September has historically been the weakest month of the year for U.S. stocks across a data set stretching back 98 years. For investors watching companies in the artificial intelligence (AI) space this year, September could be a useful test of whether a stock's investment thesis rests on price momentum or on business progress.
That distinction matters for Micron Technology (NASDAQ: MU) and Nvidia (NASDAQ: NVDA). Both companies are seeing conditions shift as the AI build-out progresses into a new stage, but the more interesting story is what is happening beneath the headlines about graphics processing units (GPUs) and central processing units (CPUs).
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Originally published at www.fool.com.