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3 Overhyped Stocks to Sell Before the AI Bubble Goes Pop!
CXAICXApp (CXAI) Investor Place·2024-07-31 19:29

Core Viewpoint - The generative AI market is projected to reach 1.3trillionby2032,butthereareconcernsaboutoverhypedAIstocksandpotentialmarketcorrectionssimilartothedotcombubble[1][2][3]Group1:Nvidia(NVDA)Nvidiasstockhasincreasedover1151.3 trillion by 2032, but there are concerns about overhyped AI stocks and potential market corrections similar to the dot-com bubble [1][2][3] Group 1: Nvidia (NVDA) - Nvidia's stock has increased over 115% since the start of the year and nearly 2,500% over the past five years, indicating strong market enthusiasm [4] - Current trading at 32.43X trailing-year sales, with projected revenue for fiscal 2025 at 120.73 billion, a 98.2% increase from the previous year [5] - Earnings surprises have decreased from 28.6% to 8.9% over the past four quarters, raising concerns about the sustainability of its high valuation [6] Group 2: CXApp (CXAI) - CXApp's stock has gained over 67% since the start of the year, but has lost nearly 69% over the past 52 weeks, indicating volatility [9] - The company generated 7.22millioninrevenueoverthetrailing12months,tradingat4.42Xsales,withprojectedrevenueof7.22 million in revenue over the trailing 12 months, trading at 4.42X sales, with projected revenue of 15 million by the end of fiscal 2025 [10] Group 3: Tesla (TSLA) - Tesla is heavily investing in AI for automated mobility but faces challenges such as a recent 4% stock loss and a recall affecting 1.8 million vehicles [11][12] - Weak demand for electric vehicles could be exacerbated by potential political changes, impacting Tesla's market position [13][14]