Selling pressure in artificial intelligence names started in last week’s shortened trading of four days. This intensified yesterday when Nvidia (NVDA) fell by 6.68%. Super Micro Computer (SMCI) lost 8.65%. Investors who have unrealized gains of at least 100% will not likely sell the stock. Those who bought at the top may have reasons to panic.
If customers developing AI solutions fail to realize a positive return on their investment, sales of the related technology equipment will fall. Valuations are excessive for SMCI, Nvidia, and AMD (AMD) stock. However, AMD shares are steady at around $160. The company will announce Strix Point, a Zen 5 APU that will have 12 cores.
AMD markets the products as Ryzen AI 9 365 and Ryzen AI 9 HX 370.
In the mining sector, The Mosaic Company (MOS) gained 4.71% on Monday. Mosaic posted Q1 results on May 1. After reporting a 25.6% Y/Y drop in revenue to $2.68 billion, the stock fell since then.
RXO (RXO), a logistics firm, soared by 22.96% on Monday after announcing a deal to buy Coyote Logistics from UPS for $1.03 billion. RXO will get 15,000 customers and 97,000 carriers from Coyote. This is a quality asset that will fuel RXO’s growth.
