Receding AI Stock Euphoria Has Bulls Seeing Some Opportunities
- Rout has returned AI hardware valuations to reasonable levels
- Nvidia and Dell are scheduled to report later this month
Upcoming results from Dell and Nvidia will be a crucial test of whether the selloff is really over.
Photographer: Akio Kon/BloombergThis article is for subscribers only.
Skeptics had long warned that artificial intelligence-related stocks were in a bubble. Now that some of the froth has come off, bulls see an opportunity.
Shares in makers of AI hardware and infrastructure — including Dell Technologies Inc., Super Micro Computer Inc., ARM Holdings Plc. and Nvidia Corp. — have come under huge selling pressure in recent months, bringing their valuations back down to earth. And with most of their big customers planning to continue spending billions of dollars on AI, some say that it’s time to selectively get back in.