Will they recover next week?
This is probably one of the worst trading weeks for the semiconductor sector $Direxion Daily Semiconductors Bull 3x Shares(SOXL)$ , as semiconductor heavyweights from $NVIDIA Corp(NVDA)$ to $Advanced Micro Devices(AMD)$ plunged after Alphabet and Tesla posted disappointing earnings results and outlook. I believe that the sell-off in the semiconductor stocks is overdone, as the big techs have signalled higher capital expenditure on artificial intelligence in the coming quarters, which implies rising demands for AI chips to persist, benefiting Nvidia, AMD and other chip makers. Following the sharp declines this week, I'm hopeful for a rebound next week as long-term investors uncover values among the beaten-down semiconductor stocks, given that the growth in AI adoption remains intact and will continue to propel the demands for AI chips.
$Palantir Technologies Inc.(PLTR)$ and $C3.ai, Inc.(AI)$ that have also been riding on the AI frenzy as companies rush to digitize their businesses and automate their operations and look to AI to help to drive productivity and efficiency. As a result, the duo also suffered collateral damage in the sell-off of companies related to the AI-theme. Nevertheless, among the first movers in launching their AI solutions, the duo stands to benefit from growing interests in their enterprise AI applications as AI adoption gains traction. In fact, with more and more companies rush to incorporate AI functions in their businesses and operations, billions are expected to be poured into AI applications, benefitting Palantir and C3.ai.
@TigerWire @MillionaireTiger
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