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Core News Facts on AI Stocks
Investors are concerned about the valuations of artificial intelligence (AI) stocks, which have significantly risen in recent years. However, some leading AI companies are currently trading at reasonable valuations, with four stocks valued between 26x and 31x forward earnings estimates. Notably, CoreWeave, which recently went public, is expected to see its stock rise over 55% in the next 12 months.
Specific companies highlighted include Microsoft (NASDAQ: MSFT), trading at 29x forward earnings, Meta Platforms (NASDAQ: META) at 26x, and Alphabet (NASDAQ: GOOG; GOOGL) at approximately 30x earnings, all demonstrating strong growth potential in the AI sector. Oracle (NYSE: ORCL), with a projected 77% increase in cloud infrastructure revenue leading to an estimated $18 billion over the fiscal year, also trades at 31x forward earnings.
CoreWeave (NASDAQ: CRWV) made its market debut in March, surging over 300%, before experiencing a decrease amid AI bubble concerns. The demand for its AI capacity services continues to rise, contributing to a doubling of its recent quarterly revenue.
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