The shares have also outperformed all seven of the Magnificent Seven tech platform stocks, which also represent large-cap plays on the AI theme.
Still worth owning?
When a stock substantially outperforms, it may be cause for celebration but also requires investors to reevaluate the investment. Perhaps it has become too expensive.
It is one thing for a company to be great. But if the valuation overstates just how great it is, the investment going forward can be disappointing.
In retrospect, the market was severely underestimating this company’s growth profile and is only now catching up. While the stock’s valuation has grown significantly, so has its financial performance.
Perhaps most importantly, the company is establishing itself as a key player in the AI revolution that benefits from unique competitive advantages.
The shares have performed quite well, but when it comes to AI, we are still in the early innings….
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