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Chicago, IL – December 4, 2025
Today, Zacks Investment Ideas highlights key tech companies including Alphabet (GOOGL), Meta Platforms (META), Nvidia (NVDA), Microsoft (MSFT), Cisco (CSCO), and MongoDB (MDB) as the AI stock market continues to thrive, leading many analysts to argue that the current AI trade is still in its early stages despite skepticism.
Top tech companies have invested hundreds of billions into AI infrastructure, while the chances of the Federal Reserve cutting interest rates in December stand at over 80%. Notable figures like Stanley Druckenmiller emphasize that the Fed’s liquidity drives stock prices, reinforcing bullish sentiments on AI investments. Despite a recent decline in AI-related stocks due to perceived sales misses by Microsoft, the company has clarified that it has not lowered sales quotas, indicating continuing growth potential in the sector.
Companies like Cisco and Nvidia maintain reasonable price-to-earnings ratios compared to the dot-com bubble, with Nvidia at a P/E of 50x. Additionally, MongoDB recently exceeded its earnings guidance, showcasing the rippling benefits of AI across software and other businesses. Analysts suggest that the AI trade still presents significant upside as it evolves beyond its current phase.
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