Following OpenAI’s Revenue Report, Should You Really Buy AI Stocks Right Now?
All eyes — at least in the investing community — have been on artificial intelligence (AI) companies for quite some time. Over the past few years, these players have driven overall stock market gains, making them a favorite of investors. In more recent times, while AI stocks have continued to climb, they’ve also been looked at with a certain degree of caution.
Tech giants aim to spend nearly $700 billion on the AI infrastructure build-out this year alone, and investors question whether such spending is necessary given the future revenue opportunity. Demand for AI has been enormous, however, prompting companies to make these major investments to keep up and potentially win over time.
All of this means investors are particularly keen on considering the latest earnings figures from key companies in the space. This past week, one such player — OpenAI — divulged its latest revenue figures, which were lower than a figure reported last month, according to press reports. As a result, AI stocks, from Nvidia to Oracle, fell during the trading session.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.