Now, these stocks could keep rising; the near-term fundamentals do look strong. However, with many of these names up more than 100% this year, I’m wondering if it might be smarter to focus on some of the AI stocks that have been left for dead?

A cheap Mag 7 stock

One high-quality AI stock that’s suffered recently is Microsoft (NASDAQ: MSFT). This year, it’s actually down despite all the AI hype.

Why’s it fallen? Because it’s a software business and investors don’t want a bar of software right now.

I think there could be an opportunity to consider here while the stock’s under pressure. In my view, it’s far too early to write this company off. Recent earnings were strong. For the quarter ended 31 March, revenue was up 15% year on year at constant currency.

Notably, on the earnings call, the company said that its Copilot service now has 20m paid enterprise seats. This suggests its AI services are gaining traction.

It’s worth pointing out that Microsoft is the second largest cloud computing company in the world (it’s not just a software play). And it’s developing its own AI chips. So while there are risks around software disruption, I continue to see a lot of potential here, especially while the price-to-earnings (P/E) ratio is in the low 20s.

Consistent top-line growth

Another name that’s been lumped into the software basket is AXON Enterprise (NASDAQ: AXON). The maker of Taser guns, it’s a global leader in public safety.

This company – which is using AI heavily today – continues to grow at a rapid rate. For the first quarter of 2026, revenue was up 34% to $807m (its ninth consecutive quarter of 30%+ growth). On the back of this performance, the company raised its full-year guidance.

However, investors weren’t that excited because it’s not an AI infrastructure play.

With the stock down around 50% from its highs, I see an opportunity to consider here (I’ve been buying shares recently). A growth slowdown is a risk given the company’s high P/E ratio (40, using next year’s earnings forecast), however, taking a five-year view, I’m very bullish.

No AI slop here

Finally, Palantir‘s (NASDAQ: PLTR) another AI stock that could be worth checking out. I’ve been buying here too.

Last quarter, this company generated revenue growth of an unbelievable 85% as businesses in the US scrambled to adopt its AI solutions. However, investors didn’t care – because it’s a software company.

Is Anthropic a risk? Potentially. However, if you listen to the Q1 earnings call, the company repeatedly talks about how its Artificial Intelligence Platform (AIP) is superior to standard LLMs.

“AIP is the only platform that establishes a true AI no-slop zone, a necessary requisite to converting potential AI leverage into compounding real-world value without risking enterprise disaster.”

Palantir Chief Revenue Officer Ryan Taylor

Now, this stock’s expensive – the forward-looking P/E ratio using next year’s earnings forecast is 68. However, if the company keeps growing at a prolific rate, it’s only a matter of time until it looks cheap.

So I think it’s worth considering as a growth play.

The post While everyone’s piling into AI infrastructure stocks like Micron and SanDisk, consider these out-of-favour Nasdaq 100 names appeared first on The Twelfth Magpie.

Looking at the stock today however, I see similarities to Alphabet (NASDAQ: GOOG) (Google) back in mid-2025 when it was out of favour and trading near $150 (it has since soared to near $400). Here’s why I think Microsoft could be set to surge at some point just like Alphabet has.

Examining Alphabet’s rebound

In mid-2025, a lot of investors were completely writing Alphabet off. The theory was that ChatGPT was going to disrupt Google search and destroy Alphabet’s business model.

Alphabet didn’t sit around doing nothing as people started to use ChatGPT for search. Instead, it used its financial resources and tech expertise to build an AI product equally as good (Gemini), and then integrated it into its ecosystem, winning back market share.

Additionally, it worked on developing its own powerful AI chips, tensor processing units (TPUs). It’s now selling these to other tech companies, meaning that it has a whole new revenue stream.

Ultimately, it was able to adapt to the changing business landscape and continue thriving (its latest earnings showed revenue growth of 19% at constant currency). As a result, its share price has rebounded, soaring to new all-time highs.

Could Microsoft do the same thing?

Now, I reckon Microsoft is capable of a similar turnaround. Today, it’s out of favour because people are expecting its software sales to fall due to AI disruption and automation. This is a risk. But here’s the thing – Microsoft’s finding new ways to generate revenue.

For example, in its recent earnings it told investors that its AI-powered digital assistant service Copilot now has 20m paid enterprise seats. This service costs around £15 a month per user, so that’s a fair bit of revenue.

Meanwhile, like Alphabet, Microsoft’s also developing its own chips. Earlier this year, it announced the launch of Maia 200 – an inference chip designed to improve the economics of AI token generation.

These chips are not being sold to other companies today. But if the company was to sell them to other businesses, there could be a whole new source of revenue.

Ultimately, there are many ways that Microsoft could reinvent itself for the AI era. I expect it to do just that – this is a company with a history of evolution.

The stock’s cheap today

Zooming in on the valuation, Microsoft looks quite cheap. Looking at the earnings forecast for the year starting 1 July, the forward-looking price-to-earnings (P/E) ratio’s only 21. At that multiple, I see the potential for an upward valuation rerating if the company can show that it’s having success in the AI era. In the past, it has often traded on P/E ratios in the 30s.

Of course, there are no guarantees the stock will perform well from here. AI automation is a risk and sentiment towards the stock could remain weak.

At current levels however, I like the risk/reward set-up and believe the stock’s worth considering. It’s worth noting that the average analyst price target is $564 – about 35% above the current share price.

The post Could buying Microsoft stock now be like buying Alphabet in mid-2025 at a share price of $150? appeared first on The Twelfth Magpie.

The question is – which is the better option to consider buying for an ISA today? Is it smarter to go for the high-flying Alphabet or the beaten-up Microsoft?

Which tech company’s performing better?

Both companies produced strong earnings reports earlier this week. However, Alphabet’s was the stronger of the two.

For the quarter, it posted:

• Total revenue of $109.9bn, up 22% (19% at constant currency).
• Cloud revenue of $20bn, up 63%.
• Earnings per share (EPS) of $5.11, up 82%.

One highlight of its results was that Gemini Enterprise saw 40% quarter-on-quarter growth in paid monthly active users. This shows institutions are increasingly using Alphabet’s AI services.

Turning to Microsoft, it posted:

• Revenue of $82.9bn, up 18% (15% in constant currency).
• Cloud revenue of $54.4bn, up 29%.
• EPS of $4.27, up 21%.

On the earnings call, CEO Satya Nadella said that Microsoft Copilot now has 20m paid enterprise seats. This suggests its AI services are gaining traction in the business world too.

Looking at the numbers, both companies are performing well. But it’s hard to ignore Alphabet’s cloud growth – it’s very impressive.

What do analysts like more?

After the earnings, Wall Street analysts have been scrambling to update their price targets for Alphabet. I counted increases from 23 different firms. The average price target of those firms is $427. That’s about 17% above the current share price.

Turning to Microsoft, the broker activity wasn’t as bullish. While some analysts raised their price targets, others reduced them. That said, the average price target here is still well above the current share price at $569 (about 40% above). So analysts remain very bullish in general.

Which stock’s cheaper?

Focusing on valuations, Microsoft is the clear winner here. After Alphabet’s recent rise, it’s now quite expensive – its forward-looking price-to-earnings (P/E) ratio is about 29.

Looking at Microsoft, it’s trading on a forward-looking P/E ratio of about 21 when we take the earnings forecast for the financial year ending 30 June 2027. So it’s far cheaper than its Mag 7 rival.

Which is riskier?

As for risks, both companies face them. For Alphabet, a major risk is a slowdown in advertising spending. From an investment perspective, the valuation’s also a risk – this doesn’t leave any room for a slowdown.

As for Microsoft, a key risk is white collar job losses – this could lead to less software license revenue. Another is the company’s exposure to OpenAI – ChatGPT’s losing market share to Gemini and Claude.

My call

Weighing all this up, it’s actually really hard to pick a winner. Alphabet has more momentum right now, both operationally and from a trading perspective, but Microsoft’s far cheaper.

Ultimately, I think the best stock to consider comes down to an individual’s investment approach. If more focused on momentum, Alphabet is in a strong uptrend. However, when more focused on value, Microsoft looks cheap.

The post Alphabet could rise to $427 say analysts, but is Microsoft the better Mag 7 stock to consider buying for an ISA? appeared first on The Twelfth Magpie.

Investors naturally focused on Azure – the cloud computing division. But I’m also interested in another part of the business. 

Headline numbers

Microsoft’s overall sales grew 15% in the three months leading up to 31 March. And earnings per share increased 18%. 

As expected, Azure was very impressive. It achieved 39.8% growth, which is faster than Amazon but slower than Alphabet. 

That, however, is a function of size. Azure’s $7.8bn revenue increase is roughly similar to AWS or Google Cloud.

The outlook is still strong in terms of demand. But that means the firm has increased its spending plans by $25bn to keep up.

This is due to memory and storage costs going up. And paying higher prices for the same products isn’t a good thing for Microsoft.

Investors who were worried about overspending should pay close attention. But I’m interested in another part of the company.

Enterprise software

Cloud computing is where the growth is right now. But the company’s software businesses are also interesting to me at the moment.

Microsoft’s enterprise and productivity software are horizontal software products. They’re not specialised to any one industry.

I think this makes them more vulnerable to artificial intelligence (AI) disruption. Customers might try to create more bespoke products.

Sales in this part of the company, however, were pretty strong. Dynamics 365 grew 17% and Microsoft 365 Commercial grew 15%.

Microsoft isn’t the only horizontal software company to report strong growth. But I think the latest results are encouraging. 

The situation with AI competitors is one to keep watching closely. For the time being, though, things seem to be going well. 

OpenAI

A couple of days before its earnings update, Microsoft reported a change in its agreement with OpenAI. And the market initially viewed it negatively.

The major changes are as follows:

• OpenAI will be able to work with other cloud companies.
• Microsoft will be able to work with other AI labs.
• OpenAI will pay 20% of revenues (up to a certain level) to Microsoft until 2030.
• Microsoft still stop paying revenues to OpenAI.
• Microsoft has a license to use OpenAI’s intellectual property until 2032.

Is that a bad deal for Microsoft? I’m not convinced it is.

It’s certainly good for OpenAI in terms of opening up a wider addressable market. But Microsoft stands to benefit from this. 

In the short term, the firm gets 20% of revenues. And in the longer term, it’s the largest shareholder with around 20% of the business. 

I’m not sure there’s much to dislike here from Microsoft’s perspective. And the stock is still on my buy list at the moment. 

Wider implications

In my view, the real implications of Microsoft’s latest update go beyond the company. They affect the wider stock market. 

An increase in spending – especially driven by high demand – is a very positive sign for semiconductor companies. I expect them to keep doing well.

Strong growth in the software division is also encouraging. Stocks in that industry have been hit hard recently, but maybe there’s room for optimism.

The post How Microsoft’s strong earnings affect the wider stock market appeared first on The Twelfth Magpie.

Yet looking at data from investment platform AJ Bell, another Magnificent 7 stock is seeing more interest from UK investors right now. This growth stock’s well off its highs and investors are buying the dip.

A legendary tech stock

The stock I’m talking about is Microsoft (NASDAQ: MSFT). It’s a global leader in business productivity software, cloud computing and artificial intelligence (AI), and video gaming.

Over the last month, it has been the fourth most bought stock on AJ Bell’s platform. The only three stocks more popular have been BP, Legal & General and Rolls-Royce – more traditional picks for UK investors.

Personally, I’m not surprised Britons are attracted to this Magnificent 7 name. Because right now, it looks a lot like Alphabet (Google) stock 18 months ago.

It went through a period where its share price was depressed due to the fact that investors thought its days as a tech powerhouse were numbered. However, since then, it’s come roaring back – more than doubling in price – as shown it’s still a major player in the tech world.

Why’s it down?

As for why Microsoft shares are depressed today, there are a few reasons. One is that it’s been dragged into the software sell-off (some investors believe that demand for its software products will decline).

Another is that its AI products, such as Copilot, haven’t been life-changing. A third reason is that a lot of its cloud business seems to be coming from ChatGPT owner OpenAI (which it owns a large chunk of) so there’s some customer concentration risk.

Finally, it’s spending a lot of money on AI infrastructure. And there’s no guarantee this spending will generate a strong return on invested capital.

Now, these are all issues to think about from a risk management perspective. However, to my mind, the risk/reward set-up is attractive at current levels.

Is there an opportunity here?

Despite being a very large company (it has a market-cap of approx. $3.2trn today), Microsoft is still growing at a very impressive rate. This financial year (ending 30 June), revenue’s expected to grow about 16%.

Driving this growth is the company’s cloud computing division. This is growing at 20%-30% annually, fuelled by the growth of the AI industry.

Looking beyond the growth, Microsoft’s also extremely strong financially. This is a company with a rock solid balance sheet that pays regular dividends (the yield is quite low) and buys back its own shares. It also has a great record in terms of shareholder returns. Anyone who has owned this stock over the long run has done incredibly well.

As for the valuation, it looks attractive relative to the level of growth. At present, the forward-looking price-to-earnings (P/E) ratio is 22.

Given these attractions, I believe the stock’s worth considering for an ISA or SIPP. But it’s not the only tech stock I like the look of right now.

The post UK investors are piling into a Magnificent 7 stock and it isn’t Nvidia appeared first on The Twelfth Magpie.

A wave of high-profile companies are about to hit the stock market. And they could have serious implications for existing stocks. 

IPOs

SpaceX, OpenAI, and Anthropic are gearing up for initial public offerings (IPOs). And these could be some of the largest in history.

SpaceX is looking for a valuation of $1.75trn. OpenAI is looking for $1trn, and Anthropic is aiming for $500bn. Those are big numbers. And they come with correspondingly big implications for the stock market. 

Ordinarily, none of these stocks would be eligible to join an index straight away. But Nasdaq is changing its entry requirements. Under the new rules, the new stocks could join the Nasdaq 100 within 15 days. And that could have big implications.

Their inclusion would shake up the index in a big way. Importantly, it could cause some big names to fall sharply.

Index inclusion

SpaceX, OpenAI, and Anthropic are targeting $3.25trn in total market value. This will make them a big part of the Nasdaq 100.

As a result, funds that track the index are going to have to buy a lot of shares. That should be good for their share prices.

The new names joining, however, means existing ones will make up less of the overall index. So they’ll get sold as a result. A lot of these are also the biggest names in the S&P 500. And to balance their portfolios, funds will need to sell these.

That’s will create downward pressure on their share prices. But it won’t be because of anything going wrong with the businesses. It’s just the supply and demand dynamics of the stock market. For long-term investors, though, this could be a huge opportunity.

Microsoft

Microsoft (NASDAQ:MSFT) shares are down 22% this year. The firm is dealing with a threat on two fronts from artificial intelligence (AI).

The first is the threat of software disruption. The concern is that its enterprise software might be less valuable in a world of AI agents.

The second is the risk of overinvesting. The company has announced big spending plans for 2026 and those aren’t guaranteed to pay off. 

My own view is that the falling share price is an opportunity. And I’ve been buying the stock for my portfolio as a result. 

Microsoft shares are already at some unusually low multiples. But for those who aren’t convinced, a better opportunity might be on the way. The share price falling due to index rebalancing has nothing to do with disruption. And it’s going to be hard for investors to ignore.

Once-in-a-lifetime opportunity

Falling share prices can present buying opportunities. But there are usually associated business risks to think about. Sometimes, though, that isn’t the case. It’s extremely unusual, but this might be exactly what’s on the way later this year.

SpaceX, OpenAI, and Anthropic joining the stock market is a once-in-a-lifetime event. And it could result in a major Nasdaq reshuffle.

In that situation, investors will want to be ready. I’ll certaintly be paying close attention as the situation develops.

The post Get ready for a once-in-a-lifetime S&P 500 buying opportunity appeared first on The Twelfth Magpie.

Is now a good time to start buying shares though, considering the volatility in the markets? Let’s discuss.

Rare investment opportunities

While it may not seem like a good idea to invest when there’s so much uncertainty, history shows that periods like this are often actually a great time to buy shares. When uncertainty’s high – and investors are on edge – there are often attractive opportunities in the market that aren’t available when the market’s rising and investors are relaxed and optimistic about the future.

By buying at low levels during periods of market stress, investors can potentially do very well when market conditions normalise. History shows that those willing to buy during dips and be patient are usually rewarded in the long run.

It’s worth noting that the market has recovered from geopolitical flare-ups like the one we’re experiencing at the moment many times in the past. In recent years, for example, the market has bounced back from the Ukraine war and the Israel/Hamas conflict.

Of course, the current conflict does pose some risks to the economy in the near term – high oil prices could hurt the economy. Taking a five-year view however, the economy and the market are likely to recover.

Lots of stocks are down

In terms of investment opportunities, I’m personally seeing a ton of them right now. Plenty of stocks I follow are 20%, 30%, or more below their 52-week highs, despite the fact that the underlying companies are performing very well and have huge growth potential in the long run.

Check out this name

One stock I believe is worth a look today is Microsoft (NASDAQ: MSFT), one of the largest technology companies in the world. It’s currently trading near $370. Back in November, it was near $550.

From an investment perspective, there are a lot of things to like about Microsoft. For a start, its software is used by businesses across the world so it has reliable, recurring revenues.

Second, it’s one of the largest players in cloud computing. Looking ahead, this industry is forecast to grow by almost 20% a year over the next five years so there’s a lot of growth potential.

As for the valuation, it looks very reasonable. At present, the company’s price-to-earnings (PE) ratio is about 20.

I’ll point out that a lot of UK investors clearly see an opportunity at that valuation. Over the last week, the stock’s been one of the most bought names on AJ Bell.

Of course, there are risks. One issue some investors are concerned about is the company’s spending a lot of money on AI with no guarantee it will pay off.

Microsoft has navigated technology shifts in the past before however. So I think it’s worth giving it the benefit of the doubt and taking a closer look.

It’s worth noting that investors can reduce their risk by buying shares in a range of different companies. Drip feeding money into the market slowly is another smart risk management strategy to consider.

The post Is April a good time to start buying shares? appeared first on The Twelfth Magpie.

When they’re not watching oil prices, investors are trying to figure out artificial intelligence (AI). And Meta is an interesting case study.

Horizon Worlds

One of Meta’s recent ventures is Horizon Worlds. For those that haven’t heard of it (lucky them) it’s a sort of metaverse game.

The company announced that it was shutting the project down, before changing its mind almost immediately. But that’s not important.

The point is that Meta has lost a lot of money a lot on the metaverse since 2021. The total is around $84bn in operating income. 

The thing is, though, the stock has done really well – handily outperforming the S&P 500 since 2021. And the reason is simple.

Source: Fiscal.ai

The metaverse project has been an almost total failure. But Meta’s social media platforms have been absolutely sensational.

Since 2021, they’ve generated enough high-margin revenue to take operating profits from $46bn to $83bn. That’s why the stock is up.

I think the lesson here is that a company with terrific core assets can withstand big mistakes. And that feels very relevant in today’s stock market.

Artificial intelligence

Investors are currently wary of companies spending big on AI. There’s a real risk these won’t work. 

Two good examples are Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT). The stock market has reacted badly to their plans to keep investing through 2026.

The question is how investors should assess that risk. And I think the example of Meta is an instructive one. 

Both Amazon and Microsoft plan to spend north of $100bn in 2026. But they also have quality businesses behind them.

Amazon has AWS – its cloud computing division – and a growing advertising business. Both of these generate high-margin revenues. 

Microsoft also has a cloud business – Azure – and a huge enterprise software unit. And those are extremely impressive operations.

None of this means AI investments are going to work out for either company. But I think it means the risk might be worth it for investors.

Risk taking

Amazon and Microsoft are used to taking risks that don’t ultimately work. Both companies have tried to launch smartphones – and neither succeeded.

There are plenty more examples of unsuccessful ventures. Despite this, both stocks have been terrific investments until recently.

The proposed AI spending is on another level. But Horizon Worlds shows that more money doesn’t guarantee success.

It’s really hard to know if the latest investments are going to work. So investors can’t afford to just ignore the inherent risks.

Fortunately, I don’t think they need to. In my view, there’s a good chance both stocks do well even if the AI investments don’t.

This is why I see both stocks as buying opportunities worth considering right now. In my own portfolio, I’ve been focusing on Microsoft.

The only reason for this is that Amazon is already a big part of my portfolio. So I’m looking to add to the company I own less of.

The bottom line

Can both stocks fall further from their current levels? Absolutely – that happened to Meta in 2022. 

Will their strong operations ultimately come to the fore the way Meta’s did? My view is that this is also likely.

The post £10,000 invested in Meta Platforms Stock 5 years ago is now worth… appeared first on The Twelfth Magpie.

I have been buying shares in another S&P 500 company though. This stock is down about 27% from its highs and at current levels, I see it as a bit of a no brainer for my retirement portfolio.

A long-term winner

The company I’m referring to is Microsoft (NASDAQ: MSFT). One of the largest tech companies in the world, it’s a leader in business productivity solutions, cloud computing, artificial intelligence (it owns a large chunk of ChatGPT owner OpenAI), and video gaming.

Not so long ago, this stock was trading for $550 and analysts were targeting a share price of $600 or higher. Today however, it can be snapped up for around $400 (I actually managed to pick up some shares near $385).

At current levels, I see a lot of appeal. In terms of the valuation, the stock’s price-to-earnings (P/E) ratio using the earnings forecast for the financial year starting in July is only 22.

In my view, there’s a lot of value on offer at that earnings multiple. Because this company is a proven long-term winner.

An exceptional business

Despite being a very large company (market cap of around $3trn today), Microsoft is growing at a very impressive rate. Over the last five years, revenue has climbed from $143bn to $282bn (an annualised growth rate of about 15%).

Looking ahead, analysts expect revenue of $328bn (+16%) this financial year. The following year, they expect $379bn (also +16%).

Fuelling this growth is the company’s cloud computing division. Last quarter, this grew 26% year on year.

Note that this segment has plenty of growth potential from here. According to Grand View Research, the global cloud computing market is expected to grow by around 20% per year between 2025 and 2030.

Another thing to like is the company’s high level of profitability. Over the last five years, return on capital employed (ROCE) has averaged 29%, which is fantastic.

Additionally, it has a rock solid balance sheet, pays dividends (and has a great dividend growth track record), and is doing share buybacks. Overall, there’s a lot to like.

I should also point out that over the long term, this stock has really delivered for investors. Over the last 10 years, it has generated a share price return of around 22% per year (and that’s after the recent 27% fall).

An investment opportunity?

Of course, it’s not perfect. One issue to be aware of is that the company is spending a ton of money on AI infrastructure at the moment — around $120bn this year — in an effort to be a leader in this area of technology. The problem is that there’s no guarantee this investment will pay off.

Another issue is that as a software company, it’s being dragged into the ‘AI is going to kill software’ narrative. I’d be very surprised if AI did kill this business given how embedded its products are in the corporate world and its part ownership of OpenAI, but this could impact sentiment towards the stock for a while.

Overall though, I think the risk/reward proposition is compelling at current levels. I believe the shares are worthy of further research.

The post I still like Nvidia, but right now, I like this legendary S&P 500 stock more appeared first on The Twelfth Magpie.

As the rise of artificial intelligence (AI) creates doubt over the outlook for software companies and AI infrastructure firms, I think the stock market is a great place to invest. So here’s what I’m doing.

A dislocated market

The stock market has changed its mind several times about which businesses are going to be the AI winners. But one industry that has fared very well is semiconductors.

Companies like Micron that supply things that go into data centres – in this case, memory chips – have seen demand surge. And supply hasn’t been able to keep up.

As a result, prices have increased and this means revenue growth has been accompanied by margin expansion. So profits have surged and share prices have rocketed as well. 

The trouble is, that same dynamic – inelastic supply that can’t react to changes in real time – is going to prove a problem if (or when) demand ever falls. And that’s the big risk. 

It’s not just hypothetical. The stock market seems genuinely concerned about the risk of data centre overbuilding and it’s been expressing this in falling share prices for big tech companies. 

That, though, is where I think there’s an opportunity. The market is worried about one side of the AI infrastructure boom but not the other – and that’s where I’m looking for opportunities. 

Hyperscalers

Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) saw their share prices fall in response to their latest earnings reports. And the general theme was very similar. 

Both companies announced significant plans to invest in AI data centres in 2026. In each case, the proposed spending is around five times the revenue of their cloud businesses in Q4 2025.

The market is concerned about the risk of oversupply, which is fair enough. But it isn’t expressing the same worry about the companies making the equipment that goes into these data centres.

Given this, I think Amazon and Microsoft both look like relatively attractive opportunities, which is why I’ve been buying both recently. And there’s something else to pay attention to on this front.

Both companies have significant investments in some of the leading AI labs. Microsoft owns 27% of OpenAI and Amazon owns around 20% of Anthropic.

I’m not convinced the market is fully reflecting the value of these investments in the share prices of the big tech companies. And that’s another reason for thinking there might be an opportunity.

AI bubble?

I think whether or not the stock market is in an AI bubble depends on which bit you look at. Shares in semiconductor companies are trading at levels that look ambitious to me right now.

Elsewhere, though, there are some stocks that look much more attractive to me at today’s prices. Rather than pricing in the growth of AI, they’re actively discounting it. 

That’s where I’m looking for opportunities at the moment. As part of a diversified portfolio, I’m seeing the chance to participate in the success of AI at some reasonable prices.

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