Invest in Baidu as a cheap AI stock with potential, avoid MicroStrategy due to Bitcoin dependence.
From Nasdaq
September 05, 2024 05:21:00 AM:
Artificial intelligence (AI) has captivated investors with its potential to learn and evolve independently. The global GDP could see a $15.7 trillion increase by 2030 due to AI. However, not all AI stocks are created equal. China-based Baidu (NASDAQ: BIDU) is a historically inexpensive AI stock worth considering in September. It boasts a dominant search engine in China and is making strides in AI-driven operations, including cloud services and autonomous driving.
On the other hand, MicroStrategy (NASDAQ: MSTR) is a company to avoid. While it has touted its AI ties, its valuation is heavily reliant on its Bitcoin holdings, with almost its entire market cap attributed to the cryptocurrency. Investors are paying a significant premium for its Bitcoin assets, and CEO Michael Saylor’s strategy of financing purchases through convertible debt offerings poses risks.
Consider investing in Baidu instead of MicroStrategy. The Motley Fool Stock Advisor analysts have identified Baidu as a stock with potential for significant returns. The service provides guidance on building a successful portfolio with regular updates from analysts and two new stock picks each month. Stock Advisor has historically outperformed the S&P 500 since 2002*.
Read more at Nasdaq: 1 Historically Cheap Artificial Intelligence (AI) Stock to Buy Hand Over Fist in September, and 1 to Avoid Like the Plague (and It’s Not Nvidia)