3 AI Stocks to Avoid at Current Prices
The tech-heavy Nasdaq 100 Index ($IUXX) has had a pretty decent run so far in 2023, rising 38% to more than double the percentage gains of the S&P 500 Index ($SPX) - which is up just 15.6% since the start of the year. This rise has been fueled in large part by euphoria around the artificial intelligence (AI) space, with Nvidia (NVDA) being the most noteworthy beneficiary.
And the prospects are only expected to get better for AI and AI-related industries. According to a recent study by Statista, the global AI market is forecast to reach about $1.85 trillion by 2030, up from roughly $207.9 billion in 2023.
That said, some AI stocks have run up quite a bit already, which makes their valuations less than appealing at current levels. Here, we'll discuss three AI stocks that have outperformed so far in 2023 - but analysts don't recommend buying any of them right now.
Founded in 2018 by former Google (GOOGL) executives Dave Girouard and Anna Counselman along with Thiel Fellow Paul Gu, Upstart (UPST) harnesses the power of AI to assess borrowers' creditworthiness, taking into account a wider range of factors than traditional credit scores. Upstart currently commands a market cap of $2.42 billion.