After enjoying a strong rally in the last month, investors have several stocks to worry about. They might pull back on profit-taking.
Meta Platforms (META) bottomed in the $520 range in July. The stock staged a relentless rally to nearly $700. Investors bet that Meta Muse, an AI assistant, would grow its subscriber count. Meta must first grow its free tier, then watch users upgrade to the $20/month plan. If that fails, META stock might fall.
AMD (AMD) will hike prices of its PC products by 10%. In the last few weeks, AMD stock rallied from $450 to $559.82 to trade at a 144x P/E. NVIDIA (NVDA) still dominates the AI server market. If Nvidia increases GPU chip production, it would hurt AMD’s AI-related sales.
Intel (INTC) trended higher on expectations that it would start producing memory chips. The firm exited the Optane memory product line many years before the AI boom began. If Intel does not bring memory chip production online fast enough, INTC stock might fall.
Dell Technologies (DELL) traded at all-time highs. The stock P/E rose to 33 times. Investors would get a better deal buying HP Inc. (HPQ), while Hewlett Packard Enterprise (HPE) offers similar growth prospects.
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