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【XM Forex】--The Best AI Stocks to Buy Now
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Hello everyone, today XM Forex will bring you "【XM Forex】--The Best AI Stocks to Buy Now". I hope it will be helpful to you! The original content is as follows:
What Are AI Stocks?
AI stocks are publicly listed xmyoume.companies that develop software for end users, produce cutting-edge semiconductors for AI training, and provide supporting infrastructure. Semiconductors, social media, software, and data center stocks have led the AI bubble, while a host of new entrants aim to disrupt industries.
Why Should You Consider Buying AI Stocks?
AI stocks will disrupt every sector of life, and the cycle remains in its infancy. Therefore, a gigantic growth cycle awaits AI stocks. There are many ways investors can attempt to ride the AI wave higher. AI stocks also represent innovation, improved efficiency, lower costs, and investor enthusiasm.
Here are some criteria to consider:
- Invest in AI stocks that build the semiconductors and GPUs necessary to run AI-based solutions.
- Invest in AI stocks that train AI models.
- Invest in AI stocks that build data centers.
- Invest in AI stocks that develop AI tools.
- Invest in AI stocks that manufacture the hardware for AI solutions to function.
What Are the Downsides of AI Stocks?
While AI stocks benefit from bullish catalysts, investors should consider short-term downside risks before adding them to their portfolios.
Here are five core downside risks to AI stocks:
- The AI bubble may already be bursting.
- Most AI stocks are excessively overvalued and expensive.
- The good news is mostly priced into the current share price.
- Many analysts call for a revenue shortfall, which could result in heavy selling.
- Technological breakthroughs could decrease the necessary xmyoume.computing power, data center requirements, and electricity demand, which would crush stocks in those sectors.
Here is a shortlist of attractive AI stocks:
- ASML (ASML)
- Baidu (BIDU)
- Taiwan Semiconductor Manufacturing (TSM)
- EPAM Systems (EPAM)
- Tencent Holdings (TCEHY)
- Microsoft (MSFT)
- Quantum xmyoume.computing (QUBT)
- Cerence (CRNC)
- Hut 8 (HUT)
- Marvell Technology (MRVL)
Update On My Previous Best AI Stocks to Buy Now
In our previous installment, I highlighted the upside potential of ASML, Baidu, and Taiwan Semiconductor Manufacturing.
ASML (ASML) - A long position in ASML between $701.19 and $730.60
ASML rallied over 45%, and I closed my position at an even $1,000.00. I will keep my distance from ASML, which is at the start of a correction.
Baidu (BIDU) - A long position in BIDU between $85.17 and $94.50
BIDU skyrocketed over 66%, and I took my profit at $145.00. I recommend traders wait for the dust to settle before considering a renewed long position.
Taiwan Semiconductor Manufacturing (TSM) - A long position in TSM between $12.52 and $14.06
TSM marched higher by almost 25%, but I closed my position at 300, as I do not like the uncertainty after the US demanded 50% of all chip production within the US.
EPAM Systems Fundamental Analysis
EPAM Systems is a software engineering services, digital platform engineering, and digital product design xmyoume.company. EPAM is a founding member of the MACH Alliance. Fortune named it among its 100 Fastest-Growing xmyoume.companies in 2019, 2020, and 2021. It is also a member of the S&P 500 index.
So, why am I bullish on EPAM despite its double-digit sell-off?
I am bullish on the Oracle partnership and BOSS collaboration. The former will assist Oracle with Oracle Cloud Infrastructure (OCI) and the implementation of AI services. At the same time, the latter delivers a revolutionary, immersive spatial experience that transforms how fans experience games and events.
Metric
Value
Verdict
P/E Ratio
20.31
Bullish
P/B Ratio
2.32
Bullish
PEG Ratio
1.38
Bullish
Current Ratio
3.17
Bullish
Return on Assets
8.52%
Bullish
Return on Equity
10.94%
Bullish
Profit Margin
7.91%
Bullish
ROIC-WACC Ratio
Positive
Bullish
Dividend Yield
0.00%
Bearish
EPAM Systems Fundamental Analysis Snapshot
The price-to-earning (P/E) ratio of 20.31 makes EPAM an inexpensive stock, especially for an AI play. By xmyoume.comparison, the P/E ratio for the S&P 500 is 30.17.
The average analyst price target for EPAM Systems is $211.53. This suggests excellent upside potential with manageable downside risks.
EPAM Systems Technical Analysis
EPAM Systems Price Chart
- The EPAM D1 chart shows price action between its descending 38.2% and 50.0% Fibonacci Retracement Fan levels.
- It also shows EPAM Systems entering a solid horizontal support zone.
- The Bull Bear Power Indicator is bearish, but a positive pergence has formed.
My Call on EPAM Systems
I am taking a long position in EPAM between $138.15 and $146.68. EPAM Systems has a low valuation, and its PEG ratio indicates it is undervalued. The price-to-book ratio limits downside risk, and EPAM is consolidating its AI units to improve operational efficiency.
Quantum xmyoume.computing Fundamental Analysis
Quantum xmyoume.computing develops practical, scalable, room-temperature quantum photonics products to capture data, xmyoume.compute xmyoume.complex information, create photonic AI, perform quantum sensing, and enable secure xmyoume.communication. It also operates a thin-film lithium niobate (TFLN) foundry.
So, why am I bullish on QUBT despite its pullback?
I am buying QUBT for its potential in photonic AI. The recent sell-off was due to an oversubscribed $750 share sale, which positions Quantum xmyoume.computing as the quantum xmyoume.computing xmyoume.company with the strongest balance sheet. The freshly launched Roundhill Meme Stock ETF (MEME) shows a 4.26% stake, while Tradr ETF offers its Tradr 2X Long QUBT Daily ETF (QUBX), which has over $104 million in assets. Both ETFs could provide upside pressure on QUBT.
Metric
Value
Verdict
P/E Ratio
Unavailable
Bearish
P/B Ratio
9.42
Bearish
PEG Ratio
Unavailable
Bearish
Current Ratio
88.17
Bullish
Return on Assets
-17.93%
Bearish
Return on Equity
-19.30%
Bearish
Profit Margin
31.18%
Bullish
ROIC-WACC Ratio
Unavailable
Bearish
Dividend Yield
0.00%
Bearish
Quantum xmyoume.computing Fundamental Analysis Snapshot
The average analyst price target for Quantum xmyoume.computing is $26.33. It suggests good upside potential with acceptable downside risks.
Quantum xmyoume.computing Technical Analysis
Quantum xmyoume.computing Price Chart
- The QUBT D1 chart shows price action between its ascending 0.0% and 38.2% Fibonacci Retracement Fan levels.
- It also shows Quantum xmyoume.computing challenging the lower band of its bullish price channel.
- The Bull Bear Power Indicator turned marginally bearish but remains within its ascending support level.
My Call on Quantum xmyoume.computing
I am taking a long position in QUBT between $18.00 and $20.38. While QUBT faces volatility and challenges, it can play an integral role in AI's future. Its current ratio suggests it has plenty of balance sheet power to withstand short-term challenges, and I will add it to my portfolio on subsequent selloffs, if they materialize.
The above content is all about "【XM Forex】--The Best AI Stocks to Buy Now", which is carefully xmyoume.compiled and edited by XM Forex editor. I hope it will be helpful for your trading! Thank you for your support!
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