As AI stocks, including NVIDIA Corp (NASDAQ:NVDA), struggle amid investor reevaluation and concerns about spending slowdowns, analysts express mixed opinions on future performance. Despite acknowledging risky market conditions, Gene Munster from Deepwater Asset Management anticipates two more bullish years for AI before a potential bubble burst. Conversely, Steve Weiss from Short Hills Capital cites increased competition from companies like Apple and concerns regarding NVIDIA’s growth expectations as reasons for selling his shares. Although NVDA ranks second among the top stocks analysts are monitoring during this AI selloff, some believe lesser-known AI stocks may offer better return potential in the short term.
We have recently released a compilation of the Top 10 Stocks Analysts are Following as AI Market Correction Intensifies. This article will explore NVIDIA Corp (NASDAQ:NVDA) and how it compares with other leading stocks that analysts are tracking amid the ongoing AI selloff.
Key AI stocks are finding it challenging to maintain momentum as investors reassess their tactics in light of worries over declining expenditure. Even optimistic tech enthusiasts are starting to label the AI sector as a “bubble.” Gene Munster, Managing Partner at Deepwater Asset Management, remarked during a recent CNBC segment that he anticipates we have two more years of an AI bull market before the bubble bursts.
“As a tech investor, I always revert to fundamental analysis. The fundamentals of these companies continue to hold strong. I predict we have two promising bullish years ahead before a significant bubble burst occurs. This knowledge can be unnerving, but if I remain focused on the fundamentals, I still have faith that this sector will deliver results.”
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Number of Hedge Funds Investors: 193
Steve Weiss, Founder and Managing Partner at Short Hills Capital Partners, discussed on a recent CNBC program why he divested NVIDIA Corp (NASDAQ:NVDA) shares.
“I didn’t capitalize on the upswing from earnings as the stock turned green. I sensed a downturn was imminent. There are several concerns regarding NVIDIA Corp (NASDAQ:NVDA), particularly with competitors like Apple beginning to fabricate their own chips, creating a competitive landscape. Additionally, reports indicate that China is acquiring NVIDIA chips through other countries, which poses a problem for them. Lastly, tariffs could significantly impact Taiwan Semi, which has been affected by tariff discussions, and this is not reflected in NVIDIA’s current outlook—although it may experience excess capacity issues.”