With the recent AI selloff, everyone’s asking whether AI companies have lost steam or whether the same growth is now available at better prices. I’ve been wondering the same and still not sure if, despite the huge selloff, the stocks are available at attractive prices. That’s what sentiment does to you; the risk looks much bigger when everyone’s talking about it, compared to when the risk is actually higher but a handful of people talk about it.
Following AMZN 0.00%↑ and INTC 0.00%↑ earnings, we can see that the market is now heavily punishing all companies that are unable to deliver on the lofty promises. The reaction has been witnessed across the board, even in companies that seem to be on track with their AI initiatives. That’s why I think there is an opportunity here, as long as one can identify the companies that are continuing to grow at an incredible pace and are now available at attractive prices.
In my recent article for @insidermonkey newsletter, I look at exactly these types of companies. Here’s how I began my research:
I looked at AI companies that grew their earnings by more than 30% this year and are expected to grow their next year’s earnings by at least 30%. These companies have a market cap of at least $20 billion, so they are established firms that should stay relevant even if AI infrastructure spending slows down. They are also popular among US hedge funds and are listed in ascending order of their next year’s earnings growth rate.
Fastest-Growing AI Stocks to Buy Now
10. Taiwan Semiconductor TSM 0.00%↑
EPS This Year: 61.89%
EPS Next Year: 32.41%
Number of Hedge Funds: 249
9. Vertiv VRT 0.00%↑
EPS This Year: 60.15%
EPS Next Year: 36.45%
Number of Hedge Funds: 112
8. Palantir PLTR 0.00%↑
EPS This Year: 113.12%
EPS Next Year: 43.78%
Number of Hedge Funds: 86
7. Credo Technology CRDO 0.00%↑
EPS This Year: 81.98%
EPS Next Year: 53.19%
Number of Hedge Funds: 86
6. Astera Labs ALAB 0.00%↑
EPS This Year: 117.03%
EPS Next Year: 62.40%
Number of Hedge Funds: 73
Interestingly, the top stock on my list fell 11% yesterday, for no fault of its own and with next year's earnings growth of 110%! I make these lists exactly to figure out stocks like these. Head over to read the full article at insidermonkey here:
https://www.insidermonkey.com/news/10-fastest-growing-ai-stocks-to-buy-now-1859713/