Intel's stock drops 43% due to disappointing earnings, while ASML remains a reliable AI stock option.

From Nasdaq: 2024-08-15 04:15:00

The artificial intelligence (AI) stocks on the Nasdaq-100 have seen a 13% dip due to recession concerns. However, tech giants like AMD, Amazon, and Alphabet continue to beat earnings estimates in their AI divisions, aligning with the market’s 37% expected growth rate. Investing in AI remains a promising prospect for long-term growth.

Intel has seen a 43% drop in its stock price following disappointing earnings, with revenue falling short and significant workforce cuts announced. Despite recent setbacks, Intel’s hefty investment in AI could pay off in the long run as the company competes with AMD and Nvidia in the tech industry.

ASML Holding NV, the leading supplier of lithography systems, has seen a 20% decrease in share price due to a tech sell-off. However, the Dutch tech company’s position in chip manufacturing, with clients like TSMC, Samsung, and Intel, makes it a vital player in the industry. ASML’s monopoly on chip production equipment suggests long-term growth potential.

When considering whether to invest in Intel or ASML for AI, ASML appears to be the better choice. ASML’s consistent performance, lower price-to-earnings ratio, and secure market position make it a more reliable investment compared to Intel’s recent volatility and financial struggles. ASML’s monopoly on key chip development equipment makes it a valuable stock option in the AI sector.



Read more at Nasdaq: Better Artificial Intelligence (AI) Stock: Intel vs. ASML