AI Bubble Stocks Deflating, Down 14% So Far In August

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13 stocks in the artificial intelligence and AI-related (AI&R) sector, with market capitalizations in excess of $2B, have dramatically outpaced the AI&R sector in general since the AI&R bubble began to inflate at the end of April into early May. Said 13 stocks went up 90.8%, on average - ranging between +369% and +48% - between the end of April and the end of July while the AI&R sector, on average, only went up 32.3%. Since then, however, those 13 high flying stocks have come down to earth somewhat, declining 13.6% - so far - in August while, in comparison, the sector as a whole has "only" declined 10.6%. This article list their MTD (as of August 18th) performances below, in ascending order.

Please note: Information on each stock's current market capitalization, current short interest, current stock price, company description, latest quarterly financials and related news and articles are available by clicking on the stock's trading symbol.

  1. Upstart Holdings (UPST): DOWN 50.8% MTD
    • Latest Earnings per Share (EPS): NIL
    • Short Interest: 31.9%  - A high short interest signals that investors have become more bearish and, as such, that it may be time to liquidate a long position.
  2. Recursion Pharmaceuticals (RXRX): DOWN 34.6%
    • Latest Earnings per Share (EPS): NIL
    • Short Interest: 11.9%
  3. Super Micro Computer (SMCI): DOWN 29.3%
    • Current Price to Earnings (PE) Ratio: 15.6
    • Short Interest: 9.5%
  4. IonQ (IONQ): DOWN 25.2%
    • Latest Earnings per Share (EPS): NIL
    • Short Interest: 12.2%
  5. C3.ai (AI): DOWN 23.2%
    • Latest Earnings per Share (EPS): NIL
    • Short Interest: 31.7%
  6. Palantir Technologies (PLTR): DOWN 19.1%
    • Current Price to Earnings (PE) Ratio: 63.8
    • Short Interest: 6.5%
  7. Datadog (DDOG): DOWN 18.5%
    • Current Price to Earnings (PE) Ratio: 70.6
    • Short Interest: 3.4%
  8. Zscaler (ZS): DOWN 13.5%
    • Current Price to Earnings (PE) Ratio: 86.9
    • Short Interest: 6.5%
  9. Advantest (ATEYY): DOWN 10.6%
    • Current Price to Earnings (PE) Ratio: 32.9
    • Short Interest: NA
  10. Nvidia (NVDA): DOWN 7.4%
    • Current Price to Earnings (PE) Ratio: 55.8
    • Short Interest: 1.1%
  11. Uber Technologies (UBER): DOWN 7.2%
    • Current Price to Earnings (PE) Ratio: 122.6
    • Short Interest: 2.2%
  12. Adobe (ADBE): DOWN 3.9%
    • Current Price to Earnings (PE) Ratio: 33.0
    • Short Interest: 0.9%
  13. Freshworks (FRSH): UP 13.6%
    • Current Price to Earnings (PE) Ratio: 104.5
    • Short Interest: 9.3%

The above 13 stocks are DOWN 13.6% MTD but are still UP 64.8%, on average, since the end of April and UP 92.4% YTD.In comparison, the Nasdaq is DOWN 5.8% MTD and the 12 AI&R ETFs (see list here) are DOWN 10.6%, on average, MTD.


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Disclosure: None

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