AI Stocks Tumble on Lawsuits and Guidance Concerns, But Analysts Remain Bullish on Long-Term Growth
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AI stocks like TSM, META, AMD, MU, and AVGO tumbled due to negative developments related to AI lawsuits and disappointing earnings guidance.
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A lawsuit was filed accusing Nvidia of copyright infringement for using books to train its NeMo AI platform without permission.
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This follows similar lawsuits against Microsoft, OpenAI, and Meta Platforms regarding usage of copyrighted works to train AI models.
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However, some AI stocks also received positive analyst coverage and price target increases, suggesting strong growth prospects.
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Stocks like META and TSM look inexpensive based on P/E and PEG ratios, presenting potential opportunities for investors despite volatility.