Nvidia Soars in AI Chips as C3.ai and Mobileye Face Growth Struggles
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Nvidia has been one of the hottest tech stocks, benefiting from first-mover advantage in AI chips for data centers. Its revenue grew 31% annually over the past decade.
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However, AI software maker C3.ai faces slowing growth, stiff competition, and reliance on a partnership that may not be renewed. Its stock looks expensive.
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Mobileye is the top maker of chips for advanced driver assistance systems, but it faces a severe cyclical downturn due to an inventory glut. Its growth will likely recover.
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Mobileye's stock valuation seems expensive even after a 40% drop over the past year. Insider selling is also concerning.
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While Nvidia remains a solid AI investment, C3.ai and Mobileye face challenges that could cause their stocks to fizzle out.