Buy the Excessive Weakness in AI Stocks
Weakness has become an opportunity for AI stocks.
For one, the rotation out of tech in favor of small-cap stocks, while painful, is temporary. Two, some of the top tech stocks, like Nvidia, Apple, and Advanced Micro Devices are excessively oversold and starting to rebound. Three, there’s still plenty of growth ahead for tech stocks, especially with artificial intelligence spending going through the roof.
The U.S. military, for example, is spending billions on AI to help make life-or-death recommendations in conflict. The Department of Defense is even testing the use of AI with autonomous systems and weapons, including F-16 jets.
Companies like Microsoft, Amazon, and Alphabet are also set to spend well over a trillion dollars on AI, according to Goldman Sachs.
As noted by Investopedia.com, “Microsoft, Alphabet, Meta and Amazon have all told investors they expect increased spending on AI infrastructure, specifically data centers, to secure their long-term position in the AI space and meet the computing demands of the technology.”
That being said, use recent weakness in AI stocks as an opportunity.
Keep Reading… #1 AI Stock for 2024 and Beyond
Artificial intelligence stocks are carrying the market.
One of them, Nvidia, recently became just the third $2 trillion company.
And Goldman Sachs recently called it:
“The most important stock on planet earth.”
Carson Group strategist Ryan Detrick remarked that:
“Few things are more certain than death, taxes, and Nvidia …”
You see, Nvidia is one of the only companies capable of making chips powerful enough for the most advanced AI applications.
These chips propel ChatGPT, Microsoft, Google, Amazon and pretty much everyone else involved in AI.
Without Nvidia, we wouldn’t be where we are with AI. It’s that simple.
But Nvidia can’t do everything by itself.
What most people don’t know is that it takes a village to create enough of the most powerful chips in the world.
Nvidia must rely on a small handful of publicly traded stocks.
What I call Nvidia’s “Silent Partners.”
Nvidia needs these companies throughout the chip production process — under-the-radar companies very few people have heard of.
But they have one massive thing working in their favor: In the background, they are critical to Nvidia’s business.
And while Nvidia has emerged as AI’s golden goose, these firms have benefited greatly.
Companies partnering with Nvidia have already seen big wins …
But here’s the thing …
Nvidia is pivoting to a new $1 trillion superproject that we believe will revolutionize the AI industry … again.
And it’s enlisting a whole new set of partners.
The names of these companies are not well known. Even the savviest of investors may not have heard of them.
But I have a list of Nvidia’s new Silent Partners.
