Should You Buy AI Chip Stocks on the Dip? Words from Nvidia's Jensen Huang Offer an Answer That's Crystal Clear (and Echoes Warren Buffett's Wisdom).
Buffett is known for his focus on stocks' valuations.
Should You Buy AI Chip Stocks on the Dip? Words from Nvidia's Jensen Huang Offer an Answer That's Crystal Clear (and Echoes Warren Buffett's Wisdom).
Overview
Artificial intelligence (AI) stocks have led the S&P 500's gains throughout this bull market. And chip designers, key players in the AI story, have been among the biggest winners. These companies, such as Nvidia (NASDAQ: NVDA), Broadcom (NASDAQ: AVGO), and Advanced Micro Devices, power tasks that are crucial for the development of AI and have been among the first to generate significant revenue gains from their AI businesses.
But, in recent days, these stocks have stumbled, with Broadcom leading the way after its AI chip sales forecast disappointed investors. In the first five trading days of June, Broadcom lost 13%, while Nvidia and AMD slid 2.8% and 9.6%, respectively, as investors backed away -- at least temporarily -- from these leading AI companies.
Details
Now, the question is: Should you buy AI chip stocks on the dip? Words from Nvidia chief Jensen Huang offer an answer that's crystal clear -- and this answer also echoes wisdom from billionaire investor Warren Buffett. Let's check it out.
Source
Originally published at www.fool.com.
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