Core Viewpoint - The AI sector is experiencing a significant decline, with stocks like Arm Holdings and Super Micro Computer facing sharp drops due to disappointing news and broader tech trends [1][2]. Group 1: Stock Performance - Arm Holdings shares have fallen nearly 50% from their peak in February, reflecting a high price-to-sales ratio that reached approximately 50 at one point [3]. - Super Micro Computer's shares plummeted by 23.31% after failing to pre-report revenue, contributing to the negative sentiment in the AI sector [1]. Group 2: Market Dynamics - The AI bubble is not bursting but is deflating, as stocks in the sector are down significantly from earlier highs despite no clear signs of slowing momentum in AI [2]. - The semiconductor sector remains sensitive to broader tech trends, including weak demand for consumer devices like smartphones and PCs, which impacts AI-related stocks [2]. Group 3: Company Insights - Arm's stock is currently expensive on a forward P/E basis at around 75, but the company possesses competitive advantages and accelerating revenue growth driven by AI demand [4]. - Approximately 90% of Arm's stock is held by Softbank, contributing to its volatility in the market [3].

A downbeat report from ASML dragged down other AI stocks.Shares of Arm Holdings (ARM -11.99%) were taking it on the chin today after a disappointing earnings report from ASML Holdings (ASML -7.09%) led to a broad-based sell-off in artificial intelligence (AI) stocks. Arm was the worst performer of the group as its shares finished the day down 12%, which was even worse than ASML's 7.1% drop.Arm shares get spookedArtificial intelligence stocks have soared in recent months, and Arm has been among the winners. ...

These AI stocks look well-positioned for long-term gains.The artificial intelligence (AI) stock boom is showing some signs of cooling off, but that doesn't mean that the opportunity in AI stocks is over by any means.Big businesses and start-ups are still ramping up spending to capitalize on what many tech CEOs and experts see as the biggest technological revolution since the internet. OpenAI CEO Sam Altman has also said that demand for generative AI is still growing so rapidly that new energy solutions will ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Serhii Shleihel/iStock via Getty Images Semiconductor stocks are standout performers so far in 2024, with investor appetite for AI stocks remaining elevated as AI chip leader Nvidia continues its streak of high growth. Numerous chipmaking equipment and chip stocks outperform the broader indices on a YTD basis - sixteen have YTD gains above 20%. For years, the Tech Insider Network has published on semiconductors being the leaders in tech as the building blocks and common denominators for the decade's largest ...

PhonlamaiPhoto/iStock via Getty ImagesDo you remember in Back To The Future when Marty's dad got fired in 2015? It wasn't by text or email. It was by fax! The movie got a lot right, like drones and video conferencing, but it missed the two most transformative developments of the next decade: cell phones and the internet. The problem with many predictions about technology is they don't go far enough. Some historically bad calls 1943: The President of IBM (IBM) predicts a worldwide need for maybe five co ...

Both companies benefit from the AI semiconductor boom, but one of them looks like a better investment right now.Shares of Nvidia (NVDA -2.68%) and Arm Holdings (ARM -3.66%) have been in fine form on the stock market in 2024 with impressive gains of 75% and 66%, respectively, so far, and artificial intelligence (AI) has played a key role in this solid surge.While Nvidia's fiscal 2024 fourth-quarter results, which were released in February, established the company's dominance in the fast-growing market for AI ...

ChatGPT Sparks the AI RevolutionOn Wall Street, innovation leads to earnings growth, and earnings growth which eventually leads to higher equity prices. In late 2022, OpenAI, which counts tech behemoth Microsoft ((MSFT) as its largest investor, sparked the Artificial Intelligence (AI) revolution with the release of its “chatbot” ChatGPT. ChatGPT, which leverages a large language model (LLM), allows users to get answers to almost any question in the world instantly. Though artificial intelligence has been ar ...

Artificial intelligence chip stock Arm Holdings (ARM) surged as much as 152% past a recent buy point. Following that advance, is Arm stock a buy in today's stock market? X Arm shares received an early boost Tuesday after Alphabet's (GOOGL) Google announced its first central processing unit for its data centers based on Arm technology. The internet search giant introduced its Google Axion processor at the company's Google Cloud Next conference in Las Vegas. On Wednesday, Arm stock dropped 0.8%, threatening t ...

Arm shares fell on concerns about growth and its valuation.Shares of Arm Holdings (ARM -1.89%) were among the losers last month as concerns about the stock's valuation seemed to overshadow the broader tailwind in artificial intelligence (AI).While there was relatively little news on the stock, Arm missed the tailwinds that carried peers like Nvidia and Super Micro Computer higher last month. Arm stock finished the month down 11%, according to data from S&P Global Market Intelligence, as the lockup following ...