3 Stocks At Risk In Case Of An AI Bubble

There is no denying that AI stocks have had quite a run over the last year. In fact, global stock markets, such as South Korea’s KOSPI and US’ Nasdaq, have surged primarily due to AI stocks. While returns have been stellar, there is a sentiment that we may be in an AI stock bubble. Let’s look at three AI stocks that may be at the highest risk in case of a bubble.

3 Stocks At Risk If We Are In An AI Bubble

Nvidia (NVDA) is the market leader in terms of AI stocks. However, this also puts the asset in substantial risk in the case of a bubble. Michael Burry, the analyst who shorted the housing market ahead of the 2008 financial crisis, has also taken short positions against Nvidia (NVDA). Nvidia CEO Jensen Huang also recently said that there is a possibility of an AI bubble, but not in the next five years. Huang stated, “The AI bubble will come SOMEDAY. It’s just not today.“

Also Read: Nvidia CEO Warns Of AI Bubble: Here’s The Challenge

The second AI stock that could be at risk is Micron (MU). Micron is an AI memory chip manufacturer. The company caters to Nvidia and AMD for their memory needs. If Nvidia (NVDA) was to suffer due to a bubble burst, Micron may follow quickly behind. The company has announced plans of ramping up domestic production with a $250 billion investment. If things go south, the company’s stock value may plummet. Burry has taken short positions against iShares Semiconductor ETF (SOXX), which is a fund that includes MU stock.

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