Investing in AI stocks? Don't overlook smaller names

When it comes to investing in AI-related stocks, people tend to focus a lot on the big names like Nvidia (NVDA), Alphabet (GOOG, GOOGL), and Microsoft (MSFT). But The Futurum Group's chief market strategist Cory Johnson advises investors to look at some of the small and mid-cap names too. Johnson notes that, overall, investors are broadening out beyond the giant "Magnificent Seven" stocks and looking for other ways to play the AI trade. He says if investors look at the numbers, they will see some of these smaller names are "putting up similar kinds of results and yet the market is reacting quite differently." He also thinks there is some "nervousness with investors trying to figure out technology and indeed some investors new to technology investing."? Watch the video above to hear what Johnson has to say about some of these smaller AI names. He also discusses some on Wall Street wanting to see returns on companies' AI-related investments.? For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Stephanie Mikulich.

• 
  Global semiconductor sales rise to $51.3B in July

  Yahoo Finance Video
• 
  Decoding Warren Buffett's stake reductions in Apple, BofA

  Yahoo Finance Video

Chip sector is in 'asynchronous cycle': Analyst on sales data

The Semiconductor Industry Association (SIA) revealed that August sales in the industry were below seasonal trends. Bernstein senior analyst Stacy Rasgon joins Catalysts to discuss the print and what it signals about the health of the overall sector. Rasgon notes that monthly data "tends to be a little noisy." Instead, investors should pay close attention to the three-month outlook, which is more supportive of the chip industry's growth. "More broadly in the industry, you have to remember, like currently it's been a very asynchronous cycle. Some end markets have been very bad, some of them have hit bottom, some of them are past bottoms, some of them are not," he says. "I'd say things like PCs and smartphones, they're not great this year, but they'll probably grow a little bit versus versus last year. AI is clearly off the charts strong." He explains that because of this asynchronous cycle, it's hard to look at the entire sector as a whole and make a conclusion: "You do have to pick and choose which parts of the market you're looking at, which parts of the market you want to be playing in." Broadcom (AVGO) is set to report fiscal third quarter earnings on Thursday, September 5. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Melanie Riehl