AI Stocks Have Struggled Lately -- How Long Will the Slide Last?
After soaring higher through the first half of the year, artificial intelligence (AI) stocks aren't looking like the sure thing they were a few months ago. Perhaps the best example of the change in investor sentiment was the response to Nvidia's (NASDAQ: NVDA) recent blowout second-quarter earnings report last month.
The AI chipmaker blew past estimates on the top and bottom lines as revenue nearly doubled in the quarter. Its guidance for the third quarter also was well ahead of the Wall Street view.
While you might expect the stock to soar on such a report, it finished the trading session flat after initially jumping 6% on the news. That could be a signal that investors have already priced in the surge in revenue and profits at Nvidia.
Source Fool.com
