Tech stocks decline, investors move to small-cap, but large tech and AI stocks have growth potential

From Insider Monkey: 2024-07-19 05:51:04

The recent decline in tech stocks has led investors to redirect funds into small-cap companies amid hopes of rate cuts. Some analysts believe this trend is temporary, emphasizing that large tech and AI stocks have room to grow. We examine the top AI stock upgrades and downgrades for July, with hedge fund investor numbers included. Samantha McLemore, CIO of Patient Capital, remains optimistic about the market’s direction.

Rivian Automotive Inc (NASDAQ:RIVN) is gaining attention, with 26 hedge fund investors showing interest. The company recently struck a deal with Volkswagen and delivered 13,790 vehicles in Q2. While still operating at a loss, Rivian plans to achieve profitability by the end of the year, with a focus on cost-cutting and efficiency-boosting measures.

Absci Corp (NASDAQ:ABSI) has seen a surge in its stock price, up 71% over the past year. Morgan Stanley initiated coverage with an Overweight rating, citing the company’s economical exposure to the AI theme in biotech and drug development. Absci’s collaborations with major pharmaceutical companies like AstraZeneca and Merck could drive future growth.

Best Buy Co Inc (NYSE:BBY) is poised for growth as consumer spending on AI-equipped laptops is expected to rise. Wall Street analysts anticipate a new wave of consumer spending on electronics, particularly laptops, benefiting retailers like Best Buy. With one in five PCs shipped expected to be AI-capable in 2024, Best Buy stands to benefit from this trend.



Read more at Insider Monkey: 11 Biggest AI and Tech Stock Analyst Upgrades and Downgrades in July So Far