Bargain hunters may want to take note of certain stocks.
The S&P 500 has accumulated growth stocks across multiple sectors over the last three years, including technology, biotech, and consumer goods, bringing significant returns to investors. Many have shown a keen interest in firms involved in artificial intelligence (AI), viewing this sector as the next major frontier. This investment has yielded impressive returns for some, as several AI companies have reported remarkable revenue increases and surging stock prices.
However, the stock market has faced some hurdles in recent weeks. Investors are beginning to worry about various economic factors, like the pace of interest rate cuts, and how AI tools might undermine demand for specific companies’ products and services as they take over new tasks.
These challenges have impacted the S&P 500 index, which has seen declines over the last fifteen days. Yet, for those with a long-term investment perspective, there’s still some hope. This dip presents a rare buying opportunity, including…
1. Nvidia
Nvidia (NVDA +1.74%) has been a key driver of the stock market’s rise due to its dominance in the AI space. Over the last three years, shares have skyrocketed more than 700%, as investors rush to be part of this AI revolution. Nvidia is at the forefront of designing some of the most powerful AI chips available, which has propelled major tech companies to partner with them on AI projects.
Today’s changes
(1.74%) $3.21
current price
$188.19
Key data points
Market capitalization
$4.6 trillion
daily range
$186.77 – $190.36
52 week range
$86.62 – $212.19
volume
5.3M
average volume
179M
gross profit
70.05%
dividend yield
0.02%
This positioning has enabled the chipmaker to post double-digit revenue growth in the latest quarters, with revenues hitting all-time highs. High profitability has also been a theme, reflected in consistently strong gross profit margins exceeding 70%.
Nvidia has cemented its status as an AI powerhouse, and the company’s ongoing dedication to innovation bodes well for its future. Plans to release updated chips yearly, with the next iteration expected soon, could trigger a fresh growth cycle lasting until 2027.
2. Moderna
Moderna (mRNA +6.08%) has seen better days. As a leader in coronavirus vaccines, it was once a hot topic, but with declining demand, many investors have lost interest. Additionally, Moderna has recently encountered a challenging landscape for vaccines. The government cut funding for mRNA vaccine research last year, and just recently, U.S. regulators indicated they wouldn’t review the company’s influenza vaccine application.
So why consider a biotech stock right now? Moderna has a promising pipeline of potential products moving through various stages, from cancer vaccines in Phase 3 trials to candidates for treating rare diseases. If just a few of these succeed in the future, it could significantly shift Moderna’s prospects.
Today’s changes
(6.08%) $2.67
current price
$46.60
Key data points
Market capitalization
$18 billion
daily range
$45.66 – $47.68
52 week range
$22.28 – $55.20
volume
13M
average volume
12M
gross profit
55.35%
This year has started off strong for Moderna, with nearly 50% gains in January after a more than 70% decline over the past three years. The stock might still confront challenges ahead, but the issues we’ve seen so far shouldn’t deter the long-term outlook. It seems like a good time to buy, especially as the stock is still in the recovery phase.
3. Amazon
Amazon (AMZN +1.81%) has also benefited from the AI boom. While often identified with e-commerce, the company’s cloud division, Amazon Web Services (AWS), is actually a major source of its profits and has become a leader in AI, providing a diverse array of AI-related products and services.
Today’s changes
(1.81%) $3.64
current price
$204.79
Key data points
Market capitalization
$2.2 trillion
daily range
$201.51 – $206.86
52 week range
$161.38 – $258.60
volume
51M
average volume
47M
gross profit
50.29%
This focus has driven AWS to an annual revenue run rate of $142 billion, with the company recently stating that it monetizes new capacity almost immediately as it becomes available to customers. This should ease investors’ concerns regarding Amazon’s substantial capital investments in infrastructure development. With demand on the rise for Amazon and its competitors, these efforts could pave the way for ongoing revenue growth.
