Perhaps the biggest challenge of investing in technology stocks is separating hype from genuine opportunity.
Growth is great, but if you overpay for it, you can get burned. At the same time, if you’re too valuation sensitive, you can miss out on generational investment opportunities.
As of the close of trading today (July 19, 2024), shares of NVIDIA (NVDA) are down more than 12% from their all-time high of approximately $135 per share that was reached just within the past two weeks (July 10, 2024).
NVDA has of course still produced an exceptional return year-to-date (more than 130%) and certainly over longer time frames. But recent volatility in AI stocks, triggered in part over Taiwan-related concerns, highlights the need to be thoughtful about balancing long-term growth potential with valuation.
As we have assembled and managed our Model Portfolios, we have been thinking long and hard about the best way to approach AI, which we do view as a very real and very important investment theme.
In our recently published 76report, we profile a new addition to our American Resilience Model Portfolio that we believe balances valuation risk with a compelling long-term opportunity to participate in the AI revolution.
Receive access to this investment idea, and many others. For an initial price of only $1 per month, you can begin a subscription to the 76report. Click HERE.
