Inflation and Geopolitics Weigh on AI Stocks; Intel and Micron Face Headwinds
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Inflation rose higher than expected in March, dimming hopes of a near-term interest rate cut by the Federal Reserve. Higher rates could slow AI adoption.
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The ongoing Israel-Hamas conflict is weighing on investor sentiment, as it could expand conflicts in the region.
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Company-specific news also impacted AI stocks. An analyst lowered his Intel price target and forecast disappointing results.
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Supply chain issues like the Taiwan earthquake could temporarily impact Micron's production and revenue.
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Valuations vary across the AI stocks discussed. TSM, AMD, and Intel have attractive forward PEG ratios under 1.