3 Doomed AI Stocks You should sell in Feb before they dive

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By: Aquib Nawab


Artificial intelligence (AI) stocks are generating significant buzz in today's market, driving substantial growth and investor enthusiasm. With the AI market projected to surpass $2.5 trillion by 2032, investors are eager to capitalize on this trend. However, amidst the excitement, some AI stocks are struggling to keep up.


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C3.ai (NYSE:AI) has experienced a significant decline despite previous market acclaim. After reaching a peak of $48.87 last summer, its share price has plummeted by almost half. The stock has dropped by 16% in 2024 alone, primarily due to disappointing financial results and mounting losses.

1 - C3.ai (AI)

Credits: C3 AI

Factors Contributing to C3.ai's Decline

C3.ai's financial challenges, including higher-than-expected losses and weak guidance, have contributed to its downward trajectory. In December, the company forecasted an operating loss of $46 million for the first quarter of 2024, more than double the expected loss on Wall Street.

Credits: C3 AI

The uncertain outlook for C3.ai raises concerns among investors. While some remain optimistic about its potential, others advise caution, suggesting investors carefully evaluate the risks before making investment decisions.

Analysis of C3.ai's Future Prospects

Credits: C3 AI

Super Micro Computer (NASDAQ:SMCI) has experienced a remarkable surge in its stock price, soaring by 650% over the past year, with a 120% gain in 2024. However, such rapid growth often precedes sharp corrections, reminiscent of volatile "meme" stocks.

2 - Super Micro Computer (SMCI)

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Catalysts Behind SMCI's Rapid Growth

SMCI's partnership with Nvidia (NASDAQ:NVDA) and optimistic earnings forecasts have propelled its stock to new heights. Despite these gains, investors should exercise caution, as rapid growth may indicate increased volatility.

Credits: Supermicro, Instagram

Investors should be mindful of the risks associated with SMCI's rapid ascent. Historically, such growth patterns have led to market corrections, emphasizing the importance of diversification and risk management strategies.

Evaluation of SMCI's Risk Factors

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Baidu (NASDAQ:BIDU), a prominent AI developer, has faced challenges in convincing investors of its AI capabilities. Despite unveiling its "Ernie Bot" system, doubts persist regarding its ability to access essential microchips amidst export bans.

3 - Baidu (BIDU)

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Examination of Baidu's Struggles

Baidu's stock has declined by 7% in 2024, reflecting concerns about its access to critical microchips for AI development. With a 25% decrease over the past year and nearly 40% over five years, Baidu's stock performance raises questions about its long-term viability.

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Market analysts predict further declines for Baidu, given its ongoing challenges and market dynamics. Investors should carefully assess the company's prospects before making investment decisions.

Forecast for BIDU's Future

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