Should You Buy the Dip in These 2 Beaten-Down Artificial Intelligence (AI) Stocks?
The AI tailwind is far from over. Let's see if these stocks are great picks to cash in on it.
Should You Buy the Dip in These 2 Beaten-Down Artificial Intelligence (AI) Stocks?
Overview
It's becoming increasingly challenging for artificial intelligence (AI) stocks to impress the market. Case in point: on May 20, Nvidia (NASDAQ: NVDA) reported its financial results for the first quarter of fiscal year 2027, which ended on April 26. Although its revenue and earnings came in ahead of analyst estimates, the stock still moved lower. Two other AI-focused companies that suffered the same fate are CoreWeave (NASDAQ: CRWV) and Broadcom (NASDAQ: AVGO). Shares of both tech leaders fell significantly post-earnings, but should investors rush to buy the dip? Let's find out.
Image source: The Motley Fool.
CoreWeave's first-quarter results looked strong, so long as we stop at the top-line. The company's revenue grew by 111.6% year over year to $2.1 billion. However, CoreWeave's net losses widened significantly to $740 million, worse than the $315 million net loss reported in the year-ago period. What's more, the company's guidance did not meet Wall Street's expectations, leading to a sharp post-earnings dip. The bulls will point out that CoreWeave's deepening net losses are necessary to support its incredible growth potential.
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Originally published at www.fool.com.
