Technology investors are used to a good thing – a positive momentum that seemed unstoppable. Giants in the industry led Nasdaq for up to two years of double-digit winnings by individual shares to shareholders offered stunning yields. For example, Nvidia (NASDAQ: NVDA)The leading world -class designer for artificial intelligence (AI), recorded her supplies 1,600% in the last five years, and Palantir TechnologiesA software player guided by AI, has progressed more than 800% of his debut in the 2020 market. And that’s just mentioning two players. Many others also made big winnings for investors.
Why such an extraordinary effect? Investors have accumulated optimism about the future of AI, a technology that could join others like electricity or the Internet on the “Game exchanger” list. This is because the AI offers the potential for saving time, energy and costs for companies – and even lead to new discoveries.
In recent weeks, however, various winds weighed in in stock in this dynamic field. Investors were taken care of by US export controls on chips in China, US implementation of tariffs on three main trade partners and general uncertainty about economics. All of this led to the drop more than 7% in the last two weeks, while some of his greatest members collapsed. But before turning your back to the technological sector, stick to. Here are three reasons why technological investors should not worry too much about the recent falls in AI shares.
Picture source: Getty Images.
As mentioned, one main theme that weighs on the market is 25% of President Donald Trump’s tariff about imports from Mexico and Canada and 20% of imports from imports from China. Technical companies produce many parts and products outside the US, which means that they could soon face higher prices.
The White House says that tariffs are a response to the flow of deadly drugs in the US and noticed that the move is “until the crisis is alleviated.” We don’t know yet how long Current trade war It will last, but this is the initial sign that the tariffs are temporary.
So, yes, the tariffs today represent a challenge, but some of the greatest and very profitable technological players in the world like Nvidia or Apple They should be able to manage these times – and succeed in the long run.
As far as export control at China exports are concerned, they may not be temporary, but they can be controlled. Applied in 2022, they have already reduced the sale of NVIDIA in that country for half compared to the days before control, but Nvidia still delivered three-digit growth to $ 130 billion, which is a record, in the last fiscal year, showing that the problem was not pernicious to make money.
Of course, before investing in a player’s chip, it is important to see exactly how dependent the company is on China. But if, like Nvidia, it grows significantly through sales in other parts of the world, a player can still invest a great investment.
Although AI boom has already brought billion dollars of income to companies like Amazon,, AlphabetAnd, of course, Nvidia, we’re actually in the early days of the story of this hot technology. Today’s $ 200 billion market is expected to reach more trillion dollars by the end of the decade, which offers AI Giants a lot of growth space.
It is also important to remember that we are still in the infrastructure construction phase, and the cloud service providers expand data centers to meet demands and customers who have launched new AI programs. But at the same time, we are making progress into another key growth phase that involves applying AI to real world problems.
Here, agents AI or software are designed to solve a complex problem and a solution to action willing to go to work in certain companies, simplify their business and increase revenue. For example, at the Call Center, AI agent can handle initial inquiries and questions. Providers for the power and design of these agents and companies that use them should benefit from growth because this phase develops.
All this means that AI opportunity is far from the end, and many companies should continue to create a significant increase in revenue.
Positive signs, which indicate investment and growth, accumulate in recent weeks. Meta platform He said he plans to invest as much as $ 65 billion this year to support his AI initiatives. The company aims to build a data center that is so large that it would cover the main part of Manhattan, and the target will end with more than 1.3 million graphic processing units (GPU) or AI -power supply.
Openii announced the Stargate Project earlier this year, a project aimed at investing $ 500 billion in the next four years to build an AI infrastructure in the USA
And Nvidia recently said the demand for the new Blackwell architecture was “extraordinary”, and the platform generated $ 11 billion in revenue in the first quarter of commercialization.
These are just a few examples, but they reflect a general AI scene in which investments and development continue with a fast pace and high level. As the Blackwell revenue figure shows and through multi -million dollar revenue in Aphabet and Amazon cloudy companies, and in investment they consume fruit.
These and above the above two points may not be time now to turn away from the investment of AI, but instead of jumping in and buying on the DIP.
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John Mackey, former Whole Foods Market CEO, Amazon Branch, is a member of the Board of Directors Motley Fool. Randa Zuckerberg, former director of the development of the market and spokeswoman for Facebook and sister of Meta Platform Executive Director Mark Zuckerberg, is a member of the Board of Directors Motley Fool. Suzanne Frey, Executive Director of Alphabeta, is a member of the Board of Directors Motley Fool. Adria Cimino He has positions in Amazon. Motley Fool has positions and recommends alphabet, Amazon, Apple, Meta platform, Nvidia and Palantir Technologies. Motley Fool has disclosure rules.
