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This week, Tracey was joined by Zacks Stock Strategist, Andrew Rocco, who is also the editor of Zacks Technology Innovators newsletter, to talk about the red-hot AI stocks.

Should You Buy, Sell or Hold the AI Stocks? 

The Technology Innovators newsletter, which owns innovative tech stocks, no surprise, actually owns several AI stocks. On May 1, 2023, Andrew had great timing when he bought NVIDIA (NVDA - Free Report) for the Technology Innovators portfolio. It is up 43.5% in just a few weeks. 

Andrew is still holding it in the portfolio. But should investors do the same? NVIDIA is up 176% year-to-date. Andrew discusses the difference between investors who bought NVIDIA years ago to one who bought just a few weeks ago. 

Know your goals. Are you a trader or an investor? What is your time horizon? 

Tracey and Andrew looked at a bunch of AI stocks. Here are 4 of them. 

4 AI Stocks: Too Hot to Handle?

• Marvell Technology (MRVL - Free Report)

Marvell Technology has been even hotter than NVIDIA in the last month. Shares of Marvell are up 63% over the last month. 

Marvell doesn’t come cheap though. It’s trading with a forward P/E of 45. But who cares about P/Es with AI? It’s all about growth and innovation. But you’ll also pay more for the sales too. Marvell has a P/S ratio of 9.7. 

Should Marvell be on your short list? 

• Microsoft (MSFT - Free Report)

Microsoft got the ball rolling on this AI mania when it launched ChapGPT earlier this year. But, surprisingly, Microsoft is “only” up 8% in the last month. However, it’s shares are hitting new 52-week highs. 

Microsoft isn’t as expensive as some other AI stocks. It has a forward P/E of 34.5 but it’s P/S ratio is not a value, at 11.9. 

Is Microsoft a deal among the AI stocks? 

• Arista Networks, Inc. (ANET - Free Report)

Arista Networks is hitting new 52-week highs during the AI stock mania. This is one of Andrew’s favorite, under the radar, AI stocks. Shares are up “just” 8.9% this month but are up 43.7% year-to-date. 

Arista Networks is trading with a forward P/E of just 29. That seems almost cheap compared to some other companies. But it’s P/S ratio is not cheap, at just 10.8.

Should Arista Networks be on your short list? 

• Palantir Technologies (PLTR - Free Report)

Palantir shares have been on a tear. If you think NVIDIA’s stock is hot, Palantir shares are up 89.8% in just the last month. Year-to-date it’s up 129%. 

As you might expect, Palantir is not cheap. It has a forward P/E of 65. It’s P/S ratio is 14.6. There’s nothing cheap about a P/S ratio over 10. 

Should you buy Palantir on this momentum? 

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