Caution: Three AI Stocks that May Lose Momentum by 2023

Artificial intelligence (AI) has become the buzzword of 2023, leading to a surge in AI stocks. However, some of these stocks may be overhyped and could run out of steam by 2023. Investors need to be cautious when investing in risky AI stocks, as predicting the timing of a pullback in such rallies is challenging. Advanced Micro Devices (AMD) is a riskier AI stock that has been riding on the coattails of Nvidia, but the company does not have the same catalysts in play yet. C3.ai, a leading Enterprise AI software provider, has been quite volatile, and while its revenue is growing, its artificial intelligence offerings may not be driving significant business growth. Marvell Technologies has enjoyed a strong rebound from the Covid-19 low, but its earnings and revenue are expected to decline this year. Despite this, Marvell’s modest beats were enough for investors to overlook year-over-year declines, leading to an 84% rally from its April 25 low to the May 30 high. In conclusion, while AI holds long-term potential, investors need to be careful while investing in AI stocks, especially the riskier ones.