The artificial intelligence stocks have bounced back a bit after selling off along with most other stocks during the Trump tariffs on and off announcements. This group used to be among the hottest of all the sectors and just months ago had been making new all time highs.
Those days are likely over as the price charts show evidence of a trend downward for these AI stocks despite this week’s bounce. It’s likely that other factors are at work besides the tariffs situation – analysts may have been re-assessing these names to see what’s there once the hype begins to fade.
4 AI Stocks With Tough Price Charts
Arista Networks
The early April 2025 price drop took the stock lower than the early August 2024 low, the most significant previous support level. Note that this week’s rally could not rise above the highs of March. The smaller red circle shows where the 50-day moving average crossed below the 200-day moving average, a clear indication of near-term trend change.
The computer hardware manufacturer has a market capitalization of $91.41 billion. The price-earnings ratio is 32.56. The debt-to-equity ratio is .01.
C3.ai
The smaller red circle shows where the 50-day moving average in mid-March crossed below the 200-day moving average. The near-term movement is downward. The red-dotted line shows how the April 2025 drop took the price below the previous support level of the early September 2024 low. Note that yesterday’s rally failed to make it above the March highs.
C3.ai has a market cap of $2.67 billion. It’s a Russell 2000 ETF holding. The software infrastructure stock has a short float of 19%, indicating great interest from Wall Street’s short selling community.
Nvidia
You can see how the low just days ago of near $87.50 takes out the previous support level from the August 2024 low as indicated by the red-dotted line. Despite Wednesday’s rally, the stock has been unable to climb above the March highs. The smaller red circle shows where the 50-day moving average in mid-March crossed below the 200-day moving average, providing a warning of sorts.
Nvidia is a semiconductor maker/designer with a market cap of $2646.91 billion. It’s one of the 30 Dow Jones Industrials, an S&P 500 component and a Nasdaq 100 stock. The price-earnings ratio is 36.90. Nvidia offers investors a .04% dividend.
ServiceNow
The area with the big red circle shows the recent price action: it slid to a new low four days ago, with a drop below the red-dotted line that shows how the late July 2024 low no longer provide support. The smaller red circle shows how the 50-day moving average just dropped below the 200-day moving average, not a bullish sign.
ServiceNow has a market cap of $163.77 billion. The software application maker is a member of the S&P 500 and trades with a price-earnings ratio of 115. The debt-t0-equity ratio is .24. The company does not pay a dividend.
Stats courtesy of FinViz.com. Charts. Courtesy of Stockcharts.com.
More analysis and commentary at johnnavin.substack.com.
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