The recent weeks saw stocks with exposure to artificial intelligence technology rallying hard, giving rise to fears that these stocks could have moved into a bubble.
Monday, most AI stocks were lower, in line with the sentiment relayed by the stock futures.
According to Benzinga Pro data, in premarket trading:
- Nvidia Corp. (NASDAQ:NVDA) fell 1.52% to $387.30.
- c3.ai, Inc. (NYSE:AI) plunged 3.13% to $31.25.
- Palantir Technologies, Inc. (NYSE:PLTR) moved 2% lower to $14.52.
- Microsoft Corp. (NASDAQ:MSFT) eased 0.50% to $333.73.
- Advanced Micro Devices, Inc. (NASDAQ:AMD) slipped 1.33% to $116.29.
- Baidu, Inc. (NASDAQ:BIDU) pulled back 1.16% to $131.90.
See Also: Best Artificial Intelligence Stocks
The weakness reflected potential profit-taking following the gains seen early last week. Even hardcore Nvidia investors have either liquidated or are looking to cash out of the stock as they believe the stock has gotten ahead of itself.
Wharton professor Jeremey Siegel said last week that AI stocks were not in a bubble as they have real earnings behind them. “To me, a bubble is a stock that’s four or five times above its fundamental value. I don’t think we’re anywhere near that,” he said.
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