Don't Really Understand Microchips? Benefit From AI Trends Through These Other Top Stocks.
Artificial intelligence (AI) is hot right now, and it's everywhere, including the stock market. Nvidia and C3.ai, for example, both of whose businesses are centered around AI, are up nearly 200% so far this year.
It's hard to know how much of this is hype and how much of this is the result of far-reaching potential. One thing that's obvious is that they're both trading at high valuations. Nvidia stock trades at 213 times trailing-12-month earnings and 40 times trailing-12-month sales, while C3.ai trades at 14 times trailing-12-month sales and isn't profitable.
It can be very tempting to hop on the AI bandwagon, or any bandwagon that's creating the latest buzz, as prices soar and everyone around you says it's going to be the next big thing. But if you're one of the many people who don't really understand what Nvidia does, or how its GPUs work, it might be best to steer clear. Believe it or not, you can find winners in every industry that can ultimately provide the same long-term potential as whatever hot tech stock is in the headlines today. And you can also benefit from AI trends by finding great stocks you do know and understand that are using AI technology to up their game.
Source Fool.com
