Welcome to Episode #360 of the Zacks Market Edge Podcast.

 

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

 

This week, Tracey was joined by Zacks Stock Strategist, Andrew Rocco, who is also the editor of Zacks Technology Innovators newsletter, to talk about the red-hot AI stocks.

 

 

The Technology Innovators newsletter, which owns innovative tech stocks, no surprise, actually owns several AI stocks. On May 1, 2023, Andrew had great timing when he bought NVIDIA (NVDA Quick QuoteNVDA - Free Report)  for the Technology Innovators portfolio. It is up 43.5% in just a few weeks. 

 

Andrew is still holding it in the portfolio. But should investors do the same? NVIDIA is up 176% year-to-date. Andrew discusses the difference between investors who bought NVIDIA years ago to one who bought just a few weeks ago. 

 

Know your goals. Are you a trader or an investor? What is your time horizon? 

Tracey and Andrew looked at a bunch of AI stocks. Here are 4 of them. 

 

Marvell Technology has been even hotter than NVIDIA in the last month. Shares of Marvell are up 63% over the last month. 

Marvell doesn’t come cheap though. It’s trading with a forward P/E of 45. But who cares about P/Es with AI? It’s all about growth and innovation. But you’ll also pay more for the sales too. Marvell has a P/S ratio of 9.7. 

Should Marvell be on your short list? 

Microsoft got the ball rolling on this AI mania when it launched ChapGPT earlier this year. But, surprisingly, Microsoft is “only” up 8% in the last month. However, it’s shares are hitting new 52-week highs. 

Microsoft isn’t as expensive as some other AI stocks. It has a forward P/E of 34.5 but it’s P/S ratio is not a value, at 11.9. 

Is Microsoft a deal among the AI stocks? 

Arista Networks is hitting new 52-week highs during the AI stock mania. This is one of Andrew’s favorite, under the radar, AI stocks. Shares are up “just” 8.9% this month but are up 43.7% year-to-date. 

Arista Networks is trading with a forward P/E of just 29. That seems almost cheap compared to some other companies. But it’s P/S ratio is not cheap, at just 10.8. 

Should Arista Networks be on your short list? 

Palantir shares have been on a tear. If you think NVIDIA’s stock is hot, Palantir shares are up 89.8% in just the last month. Year-to-date it’s up 129%. 

As you might expect, Palantir is not cheap. It has a forward P/E of 65. It’s P/S ratio is 14.6. There’s nothing cheap about a P/S ratio over 10. 

 

Should you buy Palantir on this momentum? 

 

 

Listen to this week’s podcast to find out. 

 

 

Welcome to Episode #360 of the Zacks Market Edge Podcast.

 

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

 

This week, Tracey was joined by Zacks Stock Strategist, Andrew Rocco, who is also the editor of Zacks Technology Innovators newsletter, to talk about the red-hot AI stocks.

 

 

The Technology Innovators newsletter, which owns innovative tech stocks, no surprise, actually owns several AI stocks. On May 1, 2023, Andrew had great timing when he bought NVIDIA (NVDA Quick QuoteNVDA - Free Report)  for the Technology Innovators portfolio. It is up 43.5% in just a few weeks. 

 

Andrew is still holding it in the portfolio. But should investors do the same? NVIDIA is up 176% year-to-date. Andrew discusses the difference between investors who bought NVIDIA years ago to one who bought just a few weeks ago. 

 

Know your goals. Are you a trader or an investor? What is your time horizon? 

Tracey and Andrew looked at a bunch of AI stocks. Here are 4 of them. 

 

Marvell Technology has been even hotter than NVIDIA in the last month. Shares of Marvell are up 63% over the last month. 

Marvell doesn’t come cheap though. It’s trading with a forward P/E of 45. But who cares about P/Es with AI? It’s all about growth and innovation. But you’ll also pay more for the sales too. Marvell has a P/S ratio of 9.7. 

Should Marvell be on your short list? 

Microsoft got the ball rolling on this AI mania when it launched ChapGPT earlier this year. But, surprisingly, Microsoft is “only” up 8% in the last month. However, it’s shares are hitting new 52-week highs. 

Microsoft isn’t as expensive as some other AI stocks. It has a forward P/E of 34.5 but it’s P/S ratio is not a value, at 11.9. 

Is Microsoft a deal among the AI stocks? 

Arista Networks is hitting new 52-week highs during the AI stock mania. This is one of Andrew’s favorite, under the radar, AI stocks. Shares are up “just” 8.9% this month but are up 43.7% year-to-date. 

Arista Networks is trading with a forward P/E of just 29. That seems almost cheap compared to some other companies. But it’s P/S ratio is not cheap, at just 10.8. 

Should Arista Networks be on your short list? 

Palantir shares have been on a tear. If you think NVIDIA’s stock is hot, Palantir shares are up 89.8% in just the last month. Year-to-date it’s up 129%. 

As you might expect, Palantir is not cheap. It has a forward P/E of 65. It’s P/S ratio is 14.6. There’s nothing cheap about a P/S ratio over 10. 

 

Should you buy Palantir on this momentum? 

 

 

Listen to this week’s podcast to find out.