Artificial Intelligence (AI) Stocks Are Red-Hot, but Here's 1 to Avoid (for Now)
Artificial intelligence (AI) isn't just the hottest segment of the technology sector right now, it's the hottest segment of the entire stock market. Nvidia is the poster child for AI, and its stock soared 239% in 2023, making it the best performer in the S 500 index. Nvidia is up a further 78% in 2024 already, and with a $2.2 trillion market cap has become the third-most-valuable company in the world. Several other AI stocks have also posted market-beating gains lately -- Amazon, , and Advanced Micro Devices among them.
However, not all AI stocks are created equal. Snowflake (NYSE: SNOW) trades down 18% this year so far, and it's trading 60% below its all-time high. The innovative cloud computing company faces slowing revenue growth, and its valuation is still elevated relative to its peers.
Snowflake is set to release a slate of AI products soon, but here's why its stock might continue to slide in the interim.
Source Fool.com
Microsoft Corp. Stock
The stock is one of the favorites of our community with 99 Buy predictions and 2 Sell predictions.
With a target price of 406 € there is a slightly positive potential of 6.56% for Microsoft Corp. compared to the current price of 381.0 €.
