Investors who missed out on the massive artificial intelligence rally with Nvidia (NVDA) and Super Computer Micro (SMCI) are now chasing the wrong speculations. On Tuesday, SoundHound AI (SOUN) soared before settling up by 19%. BigBear.ai (BBAI) gained 38% while C3.ai (AI) added 4%.
Investors gained confidence in SoundHound after Nvidia reported a position in the company, along with its investments in Arm Holdings (ARM) and TuSimple (TSPH). TSPH stock closed at 57 cents, down 98.58% in the past five years.
Expect AI, SOUN, and BBAI stocks to top the most actively traded stocks today. The market needs to wind down from excessive bullishness.
Bad News From One Member of the Magnificent 7
Markets may react to Apple’s (AAPL) cancellation of its electric car development as bad news. This is the wrong reaction. The EV market will worsen as consumers cancel orders on expensive products they do not need. It will redeploy some of its staff on the EV project to its AI division.
Apple needs to focus on GenAI. Otherwise, it risks falling behind Microsoft (MSFT), which invested heavily in ChatGPT, Alphabet (GOOG) with Genesis and Meta Platforms (META) and its Meta AI.
In the cryptocurrency segment, Bitcoin’s unexpected surge past $57,000 will place Coinbase (COIN) and Marathon Digital (MARA) among the most actively traded stocks today.
