AI August Wrap: Bubble Remains Intact, Barely

There's not much information as to what artificial intelligence and related (AI&R) companies are in bubble mode and how they have been performing lately, so that's what we want to do here.

This article identifies 51 AI&R stocks that continue to exhibit bubble characteristics. Their performances in August, July and YTD are presented below in 5 categories according to the extent of their appreciation: 

15 AI&R stocks – with market capitalizations of at least $1B - are UP twice that of the Nasdaq YTD (end of August) and that equates to 34.1% x 2 = 68.2% or rounded up to 70% and they are as follows with their stock performances for the month of August, in descending order, and since the beginning of 2023 (i.e. YTD).

  1. Meta Platforms (META): UP 10.2% in August; (DOWN 6.9% in July); UP 145.9% YTD
  2. Nvidia Corporation (NVDA): UP 5.6% in August; (UP 10.5% in July); UP 237.8% YTD
  3. Lam Research (LRCX): DOWN 2.2% in August; (UP 11.8% in July); UP 71.4% YTD
  4. Palo Alto Networks (PANW): DOWN 2.7% in August; (DOWN 2.7% in July); UP 73.5% YTD
  5. Tesla Inc. (TSLA): DOWN 3.5% in August; (UP 2.2% in July); UP 109.5% YTD
  6. Uber Technologies (UBER): DOWN 4.5% in August; (UP 14.6% in July); UP 91.0% YTD
  7. Advantest Corporation (ATEYY): DOWN 9.2% in August; (UP 2.8% in July); UP 96.4% YTD
  8. Marvell Technology (MRVL): DOWN 10.6% in August; (UP 8.9% in July); UP 81.7% YTD
  9. IonQ Inc. (IONQ): DOWN 10.6% in August; (UP 42.3% in July); UP 398.6% YTD
  10. The Trade Desk (TTD): DOWN 12.3% in August; (UP 18.2% in July); UP 78.5% YTD
  11. Super Micro Computer (SMCI): DOWN 16.7% in August; (UP 32.5% in July); UP 235.1% YTD
  12. Palantir Technologies (PLTR): DOWN 24.4% in August; (UP 29.4% in July); UP 133.5% YTD
  13. C3.ai (AI): DOWN 26.2% in August; (UP 15.3% in July); UP 177.0% YTD
  14. Symbotic Inc. (SYM): DOWN 34.2% in August; (UP 48.4% in July); UP 250.0% YTD
  15. Upstart Holdings (UPST): DOWN 53.2% in August; (UP 91.8% in July); UP 143.0% YTD

14 stocks – with market capitalizations of at least $1B – are UP at least 50% more than the Nasdaq YTD (i.e. 34.1% + 50% = 51.2% or rounded to 50%), and they are as follows with their stock performances for the month of August, in descending order, and since the beginning of 2023 (i.e. YTD). namely:

  1. Arista Networks (ANET): UP 25.9% in August; (DOWN 4.3% in July); UP 60.9% YTD
  2. Atlassias Corporation (TEAM): UP 12.2% in August; (UP 7.3% in July); UP 58.6% YTD
  3. Amazon.com (AMZN): UP 4.4% in August; (UP 1.4% in July); UP 64.3% YTD
  4. Alphabet Inc. (GOOGL): UP 3.4% in August; (UP 10.9% in July); UP 55.5% YTD
  5. Workday Inc. (WDAY): UP 3.1% in August; (UP 5.0% in July); UP 52.6% YTD
  6. Broadcom Inc. (AVGO): UP 2.7% in August; (UP 3.6% in July); UP 65.1% YTD
  7. Adobe Inc. (ADBE): UP 2.4% in August; (UP 11.7% in July); UP 66.2% YTD
  8. CrowdStrike Inc. (CRWD): UP 0.8% in August; (UP 10.1% in July); UP 58.8% YTD
  9. Applied Materials (AMAT): UP 0.5% in August; (UP 5.1% in July); UP 56.9% YTD
  10. ServiceNow (NOW): UP 0.1% in August; (UP 3.8% in July); UP 51.7% YTD
  11. Entegris Inc. (ENTG): DOWN 6.7% in August; (UP 3.8% in July); UP 54.4% YTD
  12. Advanced Micro Devices (AMD): DOWN 8.2% in August; (UP 0.4% in July); UP 63.2% YTD
  13. ON Semiconductor (ON): DOWN 8.6% in August; (UP 15.5% in July); UP 56.6% YTD
  14. Datadog Inc. (DDOG): DOWN 17.3% in August; (UP 18.6% in July); UP 52.0% YTD

7 stocks – with market capitalizations of at least $1B – are UP at least 25% more than the Nasdaq YTD (i.e. 34.1% + 25% = 42.6% or rounded to 40%) and they are as follows with their stock performances for the month of August, in descending order, and since the beginning of 2023 (i.e. YTD):

  1. Freshworks Inc. (FRSH): UP 17.1% in August; (UP 6.1% in July); UP 48.6% YTD
  2. Splunk Inc. (SPLK): UP 11.9% in August; (UP 2.6% in July); UP 40.9% YTD
  3. Oracle Corporation (ORCL): UP 2.7% in August; (DOWN 1.6% in July); UP 47.8% YTD
  4. Synopsis Inc. (SNPS): UP 1.6% in August; (UP 3.8% in July); UP 43.7% YTD
  5. CyberArk Software (CYBR): No Change in August; (UP 6.2% in July); UP 42.1% YTD
  6. Netflix Inc. (NFLX): DOWN 1.2% in August; (DOWN 0.3% in July); UP 47.1% YTD
  7. Procure Technologies (PCOR): DOWN 10.6% in August; (UP 16.6% in July); UP 43.2% YTD

6 stocks – with market capitalizations of at least $1B – are UP at least 10% more than the Nasdaq YTD (i.e. 34.1% + 10% = 37.5%) and they are as follows with their stock performances for the month of August, in descending order, and since the beginning of 2023 (i.e. YTD):

  1. VMWare Inc. (VMW): UP 7.1% in August; (UP 9.7% in July); UP 37.5% YTD
  2. Dell Technologies (DELL): UP 6.3% in August; (DOWN 2.2 in July); UP 39.8% YTD
  3. Intuit Inc. (INTU): UP 5.9% in August; (UP 11.7% in July); UP 39.2% YTD
  4. Hubbell Incorporated (HUBB): UP 4.4% in August; (DOWN 5.9% in July); UP 38.9% YTD
  5. Informatica Inc. (INFA): UP 1.0% in August; (UP 2.9% in July); UP 38.9% YTD
  6. Zscaler Inc. (ZS): DOWN 2.7% in August; (UP 9.6% in July); UP 39.5% YTD

Well known mega-cap companies the likes of Microsoft (MFST), Intel (INTC), Taiwan Semiconductor (TSM),   Alibaba (BABA),   Apple (AAPL),   ASML (ASML), Qualcomm (QCOM), Texas Instruments (TXN), Accenture (ACN), Cisco (CSCO), IBM (IBM), and Honeywell (HON) are not included in the above lists as their stocks have appreciated by less than 37.5% YTD.

9 stocks - with market capitalizations between $100M and $999M - are UP at least 10% more than the Nasdaq YTD of which 8 are UP +100% YTD. Below are their stock performances for the month of August, in descending order, and since the beginning of 2023 (i.e. YTD): 

  1. Applied Optoelectronics (AAOI): UP 105.2% in August; (UP 12.6% in July); UP 628.6% YTD
  2. Rekor Systems (REKR): UP 42.3% in August; (UP 46.1% in July); UP 208.3% YTD
  3. Applied Digital (APLD): UP 35.8% in August; (UP 0.6% in July); UP 228.3% YTD
  4. Innodata Inc. (INOD): UP 10.1% in August; (UP 4.2% in July); UP 353.0% YTD
  5. SoundHound AI (SOUN): DOWN 11.0% in August; (DOWN 37.8% in July); UP 159.8% YTD
  6. Presto Automation (PRST): DOWN 16.3% in August; (DOWN 23.8% in July); UP 45.4% YTD
  7. Rigetti Computing (RGTI): DOWN 18.2% in August; (UP 86.4% in July); UP 146.6% YTD
  8. BigBear.ai (BBAI): DOWN 18.4% in August; (DOWN 14.5% in July); UP 144.8% YTD
  9. Verses AI (VRSSF): DOWN 38.8% in August; (DOWN 8.4% in July); UP 102.2% YTD

The 51 stocks reviewed above showed virtually no change in value in August, on average, indicating that the bubble remains inflated. That being said, 25 of the stocks were down in August (only 11 declined in July) so the sector bears watching closely. 


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