Artificial intelligence (AI) is like a modern-day King Midas, turning nearly everything it touches into gold. The stock charts of many AI chip and software leaders are a testament to its success.
However, just as the fabled king’s story took a turn for the worse, some of these high-flying AI stocks may be headed for a rough patch. According to Wall Street, these stocks could potentially sink by 20% or more over the next 12 months.
Arm Holdings: The sizzle could fizzle
Arm Holdings (NASDAQ: ARM) shares have more than doubled over the last 12 months, with the majority of the gain occurring in February after the chipmaker exceeded analysts’ fiscal 2024 third-quarter revenue and earnings estimates and provided optimistic sales guidance.
AI is undeniably the primary source of Arm’s success. CEO Rene Haas mentioned in the quarterly conference call that the company is “seeing strong momentum and tailwinds from all things AI.” This is positive news, as Haas wrote to…
2024-02-25 05:51:00
Original from finance.yahoo.com