After ASML Rocks AI Hardware Names, Gene Munster Explains Why It's 'Overreaction:' 'AI Trade Is On Track'
Portfolio Pulse from Shanthi Rexaline
ASML's lower-than-expected bookings and guidance cut led to a drop in AI-related stocks, but Gene Munster believes this is an overreaction. ASML's AI-related revenue is limited, and the weakness is due to other factors. Despite this, the AI trade remains strong, with significant growth expected in AI infrastructure spending.
October 16, 2024 | 8:57 am
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NEGATIVE IMPACT
ASML's guidance cut led to a drop in AI-related stocks, but the impact on ASML is due to other factors like logic and memory capacity, not AI demand.
ASML's guidance cut led to a broader sell-off in AI stocks, but the company's AI-related revenue is limited. The weakness is attributed to other areas, suggesting the market reaction may be an overreaction.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
The Global X AI & Technology ETF fell due to ASML's guidance cut, but the long-term AI infrastructure growth remains promising.
AIQ, an ETF focused on AI, was impacted by the sell-off in AI stocks following ASML's guidance cut. However, the long-term growth in AI infrastructure spending suggests a neutral impact.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
Nvidia, as a key player in AI, saw its stock affected by ASML's guidance cut, but the long-term AI growth outlook remains positive.
Nvidia, being a major AI player, was affected by the broader sell-off in AI stocks. However, the long-term growth potential in AI infrastructure spending supports a neutral outlook.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70