Artificial Intelligence (AI) has won the stock market that has fueled over the past two years as investors see AI as the next game change technology.
In addition to this, investors were optimistic about the economy as a whole. The Federal Reserve had concluded the rise in interest rates and had started to get back on track to cut interest rates. This happened. The central bank began cutting interest rates this fall, indicating that more will continue. Against this background, growth stocks have also de-benchmarked these types of companies as they thrive in a better economic environment. It’s easy for them to expand, and customers generally spend more money on products and services.
All of this was the Nasdaq’s progression of over 43% in 2023, up 28% last year. However, in recent weeks, this sunny market environment has turned into a storm. President Donald Trump Customs duties regarding imports have been announceda movement that can compare prices, increase inflation and damage corporate profits. As a result, Nasdaq fell into the correction zone, down more than 10% from its latest high in December. But here’s the good news. AI stocks are falling right now, but they still remain silver lining in this storm market. This is why.
Image source: Getty Images.
So, first, let’s take a quick look at some of the losses we’ve seen recently. nvidia(NASDAQ: NVDA)the world’s top AI chip maker has fallen 15% in the past month. AI Software Company Palantir Technologies It sank 17% during that period. and AI Voice Specialists Sound Hound AI I lost 12%. And the list continues…
While these companies and technology, and growth players, may face headwinds in the short term due to economic uncertainty and potential slowdowns, it is important to note that the outlook for AI has not changed in the long term. Analysts predict that the combined annual growth rate for the AI market by 2030 will reach more than $1 trillion.
And there is concrete evidence that could happen. Companies from Meta Platform(NASDAQ: Meta) In alphabet(NASDAQ: GOOG)(NASDAQ: Google) We have announced an increase in spending to support AI programs. Meta said it would spend $65 billion this year and plans to build some data centers in Manhattan. Alphabet said it plans to spend $75 billion in capital this year, with much of this going towards servers, data centers and networking.
The Trump administration is even approaching the idea of boosting AI, celebrating the Openai announcement of the Stargate project, and pledging to help businesses involved access the level of electricity they need. Stargate is founded by Openai and several high-tech and financial partners, investing $500 billion over the next four years to build AI infrastructure in the US
Finally, words from one of AI’s biggest authorities also provide reasons to be optimistic about long-term growth stories. Nvidia CEO Jensen Huang said the global data center build-out would cost $1 trillion and demand for Nvidia’s chip architecture Blackwell (a key advance in accelerated computing) will outpace supply during its launch. These trends show more growth, even if certain headwinds temporarily strain revenue or stock performance.
With so many people falling to negotiation levels today, it’s now the perfect time to join promising long-term players. For example, Nvidia is currently traded 26 times Prospects of revenuethe lowest in about a year. Stocks have traded estimates of 40 to 50 times for most of the past year.
“But what if these players decline further?” you might ask. The market takes time and it’s impossible to get into at the lowest price, so buying stocks is the best idea if the rating looks cheap or reasonable. Even if it declines further, this will not change your interests over time.
This is all the best time to consider AI stocks (the silver lining of today’s storm markets) and shoot bargains that can recharge your portfolio in this enduring AI growth story.
Have you ever felt like you missed a boat when buying the most successful stocks? If you do that, you’ll want to hear this.
In rare cases, the team of analyst experts “Double Down” stock Recommendations for businesses they think are trying to pop. If you’re worried about having already missed the opportunity to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
nvidia:If you invest $1,000 when it doubled in 2009,There is $305,226! *
apple: If you invest $1,000 when it doubled in 2008, There is $41,382! *
Netflix: If you invest $1,000 when it doubled in 2004, There is $517,876! *
Currently, we are issuing “double-down” alerts to three incredible companies, and we may not have a chance like this anytime soon.
Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. Randi Zuckerberg, a former director of market development, Facebook spokeswoman and sister to Metaplatform CEO Mark Zuckerberg, is a member of Motley Fool’s board of directors. Adria Cimino There is no position in any of the stocks mentioned. Motley Fool has locations for Alphabet, Meta Platforms, Nvidia and Palantir Technologies, and is recommended. To Motley’s fool Disclosure Policy.
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
