The streaming media sector trades completely opposite to the red-hot artificial intelligence market. In its next quarterly report,
shareholders should expect Nvidia (NVDA) to report stronger-than-expected sales growth. Companies demand Nvidia’s fastest AI chip. Conversely, the media sector faces a slowdown in streaming subscriptions. This pressures profit margins.
The ongoing negotiations for Paramount Global (PARA) to find a buyer will push the stock to the most actively traded one today.
Skydance Media returned to the negotiating table. CNBC reported that the deal adds $100 million majority owner National Amusements. Skydance would still buy half of Paramount Class B shares for $15.00 each.
PARA stock closed at $11.46, up by 6.9% on July 3.
Investors may consider media stocks like Sony Group (SONY), which has a more diversified business. Comcast (CMCSA) trades at a better valuation than Sony and has healthy profits. CMCSA stock, however, is trading in a yearlong downtrend. Shares peaked at over $46 and closed at $38.10.
Charter Communications (CHTR), Sirius XM (SIRI), and Liberty Broadband (LBRDA) are Comcast’s peers. All of those stocks have negative returns in the last year.
For now, AI investors have no reason to take profits. When Broadcom (AVGO) rallied recently, it lifted AMD, Taiwan Semiconductor (TSM), Qualcomm (QCOM), and Texas Instruments (TXN) in the last week. NVDA stock is 2024’s best AI stock among this group, rising by over 150%.
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