Investors who missed out on holding any of the magnificent seven stocks should look at Alphabet (GOOG). Negative publicity about the Gemini AI picture generator is creating a better buying zone for investors.
Google plans to relaunch its image-generation AI within a few weeks. The firm took the tool offline after discoveries of historical inaccuracies. Questionable answers that users shared on social media weakened confidence in Gemini AI.
Cautious investors could buy Microsoft (MSFT) stock instead. Its CoPilot AI and image generator rarely get negative news coverage. MSFT stock is 3.16% below its 52-week high, while GOOG stock is now 10.5% lower.
Investors who missed the hot stock, Nvidia (NVDA), may consider Super Micro Computer (SMCI). AI hardware suppliers are holding their uptrend, increasing SMCI stock’s attractiveness. Valuations are similar. Shares trade at a 68.5x P/E and forward P/E of below 30 times. NVDA stock trades at a 66.3x P/E and 26.9x forward P/E.
Sector to Avoid
Investors seeking a discount should avoid travel-related stocks. Expedia (EXPE) is reportedly cutting around 1,500 jobs, citing moderating travel demand. It already warned investors that revenue would moderate this year, hurt by a drop in air ticket prices.
Airline stocks like United Airlines (UAL) and American Airlines Group (AAL) are trending higher. However, Norwegian Cruise Line (NCLH) and Carnival (CCL) are in a downtrend. Investors should avoid both sectors.
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