3 AI Stocks That Sold in March Before Crashing and Burning

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Unveil the alarming climb of AI stocks amid mounting successes and mounting challenges.

Wall Street recently experienced a Super Bowl-like moment.

Nvidia’s (Nasdaq:NVDAartificial intelligence (A.I) bullish markets. After the report, Nvidia and other AI stocks have continued to rise. This underscored the importance of identifying AI stocks to sell before a potential downturn.

And once again, the chip-making giant did not disappoint. Nvidia reported a staggering 265% year-over-year revenue increase (YOY), raising investor sentiment significantly. The event highlighted the important role of AI in driving market dynamics.

For many analysts, this puts the risk as high as about two-thirds. S&P 50024 percent of the gain in 2023 is attributable to tech companies. Critics warn that the profitability of AI technology is uncertain, posing a potential risk to investors.

Let’s explore three AI stocks to sell that could see their recent gains disappear if this rally reverses.

Palantir (PLTR)

Source: Spyro the Dragon / Shutterstock.com

Palantir (NYSE:PLTR) specializes in big data analytics, offering software that allows organizations to integrate, organize and analyze vast amounts of information. The company operates in sectors such as defense, intelligence, law enforcement, finance and healthcare.

Palantir’s Advanced Integration Platform (AIP) is central to its offerings, facilitating the analysis of complex datasets to identify patterns and insights. AIP Supports the decision-making process by providing a comprehensive and scalable solution to data-driven challenges. This product has helped PLTR climb over 250% in the last 52 weeks.

Recently, banking giant HSBC downgraded Palantir’s stock to hold, citing valuation as a key concern. Similarly, Jefferies analyst Brent Thill also noted Palantir’s valuation as swollen.

“The stock had a huge performance last year on hype. A.I. And I think that’s what we’re seeing. A.I There’s a driver, but that’s going to be the overall impact of the story and the slowdown in revenue for many stories, including Microsoft and others,” Thill said. Yahoo! Finance.

“So we’re big fans of what’s going to happen. A.I. But, again, as we said the hype is ahead of the reality.

C3.AI (AI)

Source: shutterstock.com/Below the Sky

C3.ai (NYSE:A.I) is another major beneficiary. A.I the wave of the company Software enables organizations to harness power. A.Ibig data, and cloud computing to develop, deploy, and operate at enterprise scale A.I Applications more effectively.

Also, C3.ai provides a suite of enterprise AI products that enable organizations to deploy scalable AI applications. These products include predictive maintenance, fraud detection, energy management, and customer engagement solutions. That’s one of the main reasons why AI stocks are up nearly 50% over the past 52 weeks.

Despite the hype, the company’s future guidance has failed to include this much-anticipated boost from AI. Recently, the company reported a Q3 loss of $0.13 per share, which was less than expected. Revenue was up just 17.6 percent from a year ago, coming in at $78.4 million.

C3.ai offered revenue guidance of between $82 million and $86 million for the quarter. Although higher than estimates, implied sequential growth is less than 10%.

“If the growth profile of the business accelerates and as the underlying profitability starts to flow through the model, we look to be more constructive,” he said. Morgan Stanley (NYSE:MS) said analyst Sanjit Singh.

Singh has an Underweight rating and a price target of $21 per share. A.I The stock implies downside risk of more than 30% to its price target.

Snowflake (SNOW)

Source: rblfmr / Shutterstock.com

Snowflake (NYSE:Snow) is a data storage and analytics business. With its cloud-based platform, enabling scalable, secure, and efficient data warehousing, Snowflake allows businesses to scale resources to meet their needs without compromising performance.

In the circle of A.ISnowflake provides machine learning and A.I– Analytics powered by seamless integration with popular A.I Tools and frameworks. This integration enables users to unlock valuable insights from their data, enhancing decision-making and innovation.

Snowflake was another major beneficiary of this. A.I The wave that wreaked havoc on Wall Street. However, the story took a turn for the worse after the release of the fourth-quarter earnings report and the unexpected departure of its CEO, Frank Slootman, who immediately retired from the role but will remain on the board.

Sridhar Ramaswamy, a former senior vice president at AI, steps in as the new CEO, according to Evercore ISI analyst Kirk Materne, marking a dramatic shift that has taken Wall Street to adjust. Time is required.

Snowflake’s projected product revenue of $3.25 billion for fiscal 2025 represents 22% growth. Therefore, it fell short of analysts’ expectations of $3.43 billion, especially given its 38% growth in the most recent fiscal year.

Additionally, CFO Mike Scarpelli labeled the forecast as conservative, citing that it was based on past usage patterns and included upcoming products currently in public preview. Has not been done. The company’s fiscal first-quarter forecast is also disappointing, with product revenue estimated between $745 million and $750 million, down from expectations of $759 million.

As of the date of publication, Shane Neagle held no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

Shane Nagel is fascinated by the ways in which technology is poised to disrupt investing. He specializes in fundamental analysis and growth investing.

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