AI Stocks 🧠 - Opportunities or Risks?
Worldwide spending on artificial intelligence, including AI-enabled applications, infrastructure, and related IT and business services, will more than double by 2028 when it is expected to reach 632 billion USD. The rapid incorporation of AI, and generative AI in particular, into a wide range of products will result in a compound annual growth rate of 29.0% over the 2024-2028 forecast period. Let's look into a few AI stocks today.
PLTR
With its shares up 80+% year to date, Palantir has been having a good run, especially after better-than-expected second-quarter earnings show accelerating growth following the rollout of new generative artificial intelligence tools.
PLTR daily chart
Few weeks ago, after plunged towards its EMA 200 support, PLTR chart showed a strong buying force, with a super long green candle. This was a bottoming sign for Palantir, and since then, the share price rallied crazily and continued to break one-year new high. A clear bullish vote for PLTR $Palantir Technologies Inc.(PLTR)$
C3
C3.ai has been a tough stock to own over the past four years. The developer of artificial intelligence algorithms went public at 42 USD in December 2020, and its stock more than quadrupled to an all-time high of 177.47 USD just two weeks later. That rally was amplified by a social media-driven buying frenzy in growth and meme stocks. But today, C3.ai trades at about 25 USD. The AI stock lost its luster as its growth cooled off, it racked up more losses, and rising interest rates popped its bubbly valuations.
C3.AI daily chart
As you can see from the chart drawn above, 23.59 USD acts as a very strong and important neckline support for C3. The share price touched this support at least 6 times, since 2024. In early August, its share price once again retraced towards this blue coloured neckline and rebounded again. Yes, again and again! Therefore, I believe for next week, the downside risk for C3 will still be low, a strong rebound or consolidation mode will be highly possible to happen, therefore a bullish vote for C3.ai $C3.ai, Inc.(AI)$
META
Meta says that demand for its Ray Ban Meta Smart Glasses is exceeding production capacity, which has enabled Meta to establish a foundation for the distribution of its next-gen glasses, which it's reportedly planning to demonstrate at its Meta Connect conference on September 25th.
Meta daily chart
From the chart above, we could see that Meta successfully rebounded near the critical neckline support at 452.12 USD. Moreover, its recent great earnings result sent the share price towards its recent high again. Everything seems to be very healthy and bullish for Meta $Meta Platforms, Inc.(META)$
Amazon
More than any of the megacap technology stocks, Amazon's big spending ways are coming at the expense of profits, and its shares are being punished as a result. Amazon's stock performance has lagged its megacap peers since its earnings report at the beginning of August, when the e-commerce giant signaled to investors that it would be prioritizing spending on artificial intelligence computing.
Amazon daily chart
As we can observe from the chart above, Amazon experienced a quadruple top pattern, which was a bearish trend reversal pattern. It was followed by a bull trap breakout before the share price plummeted in recent weeks. The situation seemed worrying as Amazon gapped down significantly and even below its EMA 200 support. However, in early August, Amazon had a strong rebound and stood back firm above its EMA200 support. For such, I believe Amazon will continue to trend higher towards 190 USD area which is the previous quadruple top resistance zone, bullish for Amazon $Amazon.com(AMZN)$
Microsoft
Microsoft announced that it will remove two components of the Azure and other cloud services revenue growth metric it releases every quarter. The change will provide a better understanding of the performance of the growing Azure cloud infrastructure business, which competes with Amazon Web Services.
Microsoft daily chart
Towards end July, Microsoft share price failed to sustain above its mid term uptrend line support. After the release of its earnings this week, the share price slumped towards EMA 200. The good news was the share price seemed to find its bottom somewhere there and start to rebound and trend higher. This week, Microsoft share price was rejected by its EMA50 blue coloured line resistance and pullbacked. A hard vote to Microsoft as it might rebound strongly anytime from now especially when it touches its EMA200 support. Therefore, I tend to give it a bullish vote $Microsoft(MSFT)$
How do you like AI and semiconductor stocks? Which are your top picks? Are they being mentioned above, else kindly share your favourite choice in the comments below, thanks!
@TigerStars @Tiger_comments @MillionaireTiger @TigerGPT @Daily_Discussion @CaptainTiger
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Palantir Technologies Inc. (PLTR)
Business and Industry: Palantir Technologies is an American software company that specializes in data analysis and artificial intelligence. It provides software solutions for various industries, including government, healthcare, finance, and more. The company's products are designed to assist organizations in making better decisions by analyzing large amounts of data.
Latest Earnings and Forecast: Palantir has been experiencing accelerating growth following the rollout of new generative artificial intelligence tools. The latest earnings report showed an EPS of $2.96 for the fourth quarter of 2024. The company has positive forecasts for future years, with estimated EPS of $13.08 in 2025 and $15.23 in 2026.
Recent Trends: Palantir's stock price has been performing well, with shares up more than 80% year-to-date. After a bottoming sign, the share price has rallied and continued to break new highs.
Analyst Target Price: According to analyst estimates, the mean target price for Palantir's stock is $25.69, with a low estimate of $9.0 and a high estimate of $38.0.
Investment Advice: Considering the positive earnings and forecast, strong stock performance, and analyst estimates, Palantir Technologies Inc. (PLTR) appears to have potential opportunities. However, it is important to note that investing in stocks carries inherent risks, and stock prices can fluctuate. Investors should conduct their own research and analysis before making investment decisions.
C3.ai (C3)
Business and Industry: C3.ai is an artificial intelligence software company that provides enterprise AI solutions for various industries, including energy, healthcare, manufacturing, and more. The company's products enable organizations to harness the power of AI to improve operations and make data-driven decisions.
Latest Earnings and Forecast: C3.ai has positive earnings forecasts, with estimated EPS of $0.43 in 2025 and $0.52 in 2026. The company's latest earnings report showed an EPS of $0.06 for the second quarter of 2024.
Recent Trends: C3.ai's stock has been challenging to own, with fluctuations in its performance.
Analyst Target Price: The analyst target price for C3.ai is not available in the provided information.
Investment Advice: Based on the limited information provided, it is difficult to provide a conclusive analysis of C3.ai (C3). Investors interested in this stock should conduct further research and analysis to assess its potential opportunities and risks.
Microsoft (MSFT)
Business and Industry: Microsoft is a multinational technology company that develops, manufactures, licenses, supports, and sells computer software, consumer electronics, and related services. The company is known for its popular products like Windows, Office, Azure cloud computing platform, and more.
Latest Earnings and Forecast: Microsoft's latest earnings report showed positive results, and the company's cloud infrastructure business, Azure, is competing with Amazon Web Services. The company has positive earnings forecasts, with estimated EPS of $0.36 in 2024, $0.43 in 2025, and $0.52 in 2026.
Recent Trends: Microsoft's stock price experienced a pullback towards its EMA200 support but has rebounded and is trending higher.
Analyst Target Price: According to analyst estimates, the mean target price for Microsoft's stock is $497.69, with a low estimate of $440.0 and a high estimate of $600.0.
Investment Advice: Microsoft (MSFT) has the potential for a rebound, especially when touching its EMA200 support. However, it is important to conduct further analysis and consider other factors before making investment decisions.
Please note that the above information is based on the provided data and analysis. It is essential to conduct thorough research and analysis, considering the inherent risks in the stock market, before making any investment decisions.