Chip Stocks Are Tumbling. Is It Time to Sell Cerebras, Broadcom, and Nvidia?
Written by Chris Neiger for The Motley Fool -> After a blockbuster IPO, Cerebras' share price has fallen along with other chip stocks. Broadcom is still benefiting from the artificial intelligence (AI) boom, and its shares carry less of a premium after their recent sell-off. N
After a blockbuster IPO, Cerebras' share price has fallen along with other chip stocks.
Broadcom is still benefiting from the artificial intelligence (AI) boom, and its shares carry less of a premium after their recent sell-off.
Nvidia's still the undisputed leader in AI processors, so dropping it from your portfolio wouldn't be a good long-term strategy.
The past month or so has not been kind to many chip stocks. Investors have grown increasingly worried that some have become overvalued and may not be worth holding. That's sent the share prices of Nvidia (NASDAQ: NVDA) , Broadcom (NASDAQ: AVGO) , and Cerebras (NASDAQ: CBRS) lower over the past several weeks.
But does this volatility among semiconductor stocks really mean you should get out of these three companies?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Cerebras just went public a few weeks ago, with an IPO price of $185 and an opening trading price of $350. However, after an initial share price surge, Cerebras' stock has shed about 18% since May 15 (the day after its IPO).
The company designs and manufactures massive wafer-scale chips -- each one about the size of a dinner plate -- that put the equivalent processing power of a cluster of GPUs into one large integrated chip. This new approach to semiconductors has put the company in competition with Nvidia, which (like most other chip companies) turns each silicon wafer it uses into hundreds of smaller processors, rather than one large one.
