Almost All AI Stocks Declined Sharply On Wednesday - Here's Why

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Introduction

As I mentioned in my previous article, a lot can, and does, happen on a daily basis with AI stocks and today was one such day and this article identifies the "major movers" - those stocks that have advanced or declined by 5% today, Wednesday, July 24th. 33 (58%) of the 57 AI stocks that munKNEE tracks on a weekly basis declined today by 5% or more after tech giants Alphabet (GOOGL) and Tesla (TSLA) reported earnings last night that failed to live up to expectations. Only 1 stock advanced by more than 5%.

Rather than list all 34 "major movers" as to their stock movements today along with a description of their area of focus and the munKNEE Portfolio they are included in, this article concentrates on the 7 that declined by 7% or more and the 1 that actually advanced in excess of 5%, leaving the 14 others that declined between 6% and 6.9% and the 12 that declined between 5% and 5.9%.  

Below are the details of those 8, in descending order, today:

1. Check Point Software Technologies (CHKP): UP 5.9%
   • Area of Focus:  offers a multilevel security architecture, cloud, network, mobile devices, endpoints information, and IOT solutions
   • Portfolio: Pure-Play CyberSecurity Software Stocks Portfolio
   • Other Constituents: Zscaler; Fortinet; Tenable; Gen Digital; Palo Alto Network; Crowdstrike
   • Reason for Major Move: reports strong Q2 2024 results and announces new CEO (Source)
2. Broadcom (AVGO): DOWN 7.6%
   • Area of Focus: designs and sells hardware devices and semiconductor chips while outsourcing their fabrication (or fab) to a specialized manufacturer
   • Portfolio: Pure-Play Fabless Semiconductor Companies Portfolio
   • Other Constituents: Marvell (-5.9%); AMD (-6.1%); Qualcomm (-6.4%); Nvidia (-6.8%); Monolithic Power (-6.9%)
3. SoundHound AI (SOUN): DOWN 7.9%
   • Area of Focus: SOUN offers voice AI solutions that let businesses offer conversational experiences to their customer in 25 different languages
   • Portfolio: Micro/Small Cap AI Stocks Portfolio
   • Other Constituents: Applied Optoelectronics (-9.2%); Evolv Technologies (-6.8%); Rekor Systems (-6.0%); BigBear.ai; Verses; Innodata; Digimarc  
4. IonQ (IONQ): DOWN 8.2%
   • Area of Focus: using trapped-ion technology in its processing units which relies on suspending ions in space using electromagnetic fields, and transmitting information through the movement of those ions in a “shared trap.”
   • Portfolio: Pure-Play Quantum Computing Stocks Portfolio
   • Other Constituents: 
   • D-Wave Quantum (-9.2%); Rigetti Computing (-8.9%); Quantum Computing (-6.4%)
5. Rigetti Computing (RGTI): DOWN 8.9%
   • Area of Focus: RGTI builds quantum computers and the superconducting quantum processors.
   • Portfolio: Pure-Play Quantum Computing Stocks Portfolio
   • Other Constituents: D-Wave Quantum (-9.2%); IonQ (-8.2%); Quantum Computing (-6.4%)
6. Applied Optoelectronics (AAOI): DOWN 9.0%
   • Area of Focus: AAOI provides fiber-optic access network products for the cable broadband, internet data center, telecom, and fiber-to-the-home markets.
   • Portfolio: Micro/Small Cap AI Stocks Portfolio
   • Other Constituents: SoundHound AI (-7.9%); Evolv Technologies (-6.8%); Rekor Systems (-6.0%); BigBear.ai; Verses; Innodata; Digimarc  
7. D-Wave Quantum (QBTS): DOWN 9.2%
   • Area of Focus: develops and delivers quantum computing systems, software, and services worldwide
   • Portfolio: Pure-Play Quantum Computing Stocks Portfolio
   • Other Constituents: Rigetti Computing (-8.9%); IonQ (-8.2%); Quantum Computing (-6.4%)
8. Recursion Pharmaceuticals (RXRX): DOWN 9.0%
   • • Area of Focus: decoding biology by integrating technological innovations across biology, chemistry, automation, data science, and engineering to industrialize drug discovery
     • Portfolio: AI-Powered Drug Discovery Stocks Portfolio
     • Other Constituents: Relay Therapeutics (-5.8%); Absci (-5.2%); AbCellera Therapeutics; Schrodinger; Exscientia

Conclusion

What will be in store for the AI category tomorrow? Stay tuned!

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