Artificial intelligence stocks are said to be the next big thing. That may be true but once you go beyond the successes of Nvidia and Palantir Technologies, it’s tougher now than it’s been. With those two hitting new highs today and the Nasdaq 100 hitting new highs, why are these other AI names not quite following the lead lately?
Has the bloom come off the artificial intelligence rose?
5 AI Stocks Not Hitting New Highs
iShares Future AI and Tech ETF:
It’s odd to see this AI ETF fail to make a new high while the S&P 500 and the Nasdaq 100 make it up to their new highs today. Up until August, this price had followed the indexes upward. Not anymore. Following the July 31 stock market sell-off, the iShares Robotics and Artificial Intelligence exchange traded fund is underperforming.
This OTC-traded stock makes up 3% of the iShares Robotics and Artificial Intelligence ETF portfolio. Market cap is $59.37 billion. The Tokyo-based Advantest makes semiconductors. The tech firm’s annual growth rate over the last five years is reported to be 43%. The red-dotted line indicates “lack of new high.”
The company using the symbol “AI” has one of the sector’s worst looking charts. In December 2024, it traded at above $44 and now goes for $16.91. C3.ai this month took out the previous low from April, designated on this chart by the lower red-dotted line. Earnings this year are down by 23% and down over the past five years by 25%.
After trading at above $205 in February and dipping down to $140, the stock that is still commonly referred to as Google, now trades at $203. That’s lower than February even with the gap down now filled (red circled). Market cap is $2462 billion. It’s a component of the S&P 500 and the Nasdaq 100, both of which hit new highs today.
From the February high of near $66 to the present $46 amounts to a 30% slide. The rally from the April low looked good until the July 31 stock market sell-off. A few days after that Super Micro Computer gapped down after an earnings miss. The company that refers to itself as “an AI data center infrastructure total solution” has a market cap of $27.71 billion.
The stock hit $155 in January, dropped in April to just below $60 and almost recovered in late July with a $153 trading range high. Vertive now trades for $143 making it another AI stock failing to keep up with today’s new highs for the S&P 500 and the Nasdaq 100. The company calls itself “a global leader in critical digital infrastructure.”
What has happend to all of the previous enthusiasm for this persistently hyped sector? Some former buyers seem to be holding back now.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
No artificial intelligence was used in the writing of this post.
More analysis and commentary at johnnavin.substack.com.