Two Artificial Intelligence Stocks to Consider in the Event of a Possible Stock Market Crash
Despite macroeconomic concerns and high valuations, companies entering investors' radar in the event of a potential market decline are examined.
Preparing for the possibility of a stock market crash due to macroeconomic problems such as geopolitical tensions and inflation, investors are evaluating two artificial intelligence-focused stocks they plan to add to their portfolios in the event of a potential decline.
Market Concerns and Potential Downturn Scenarios
Although the S&P 500 index has increased by 11 percent since the beginning of the year, some investors are worried that a market crash may occur due to macroeconomic issues such as rising geopolitical tensions and high inflation.
Space Exploration Technologies and Artificial Intelligence Investments
Known for its reusable rockets, the Starship project, and the Starlink satellite internet service, Space Exploration Technologies is expanding its field of activity by providing AI computing capacity to partners such as Alphabet and Anthropic.
In the second quarter of the year, the company reported revenue of $7.8 billion, a 92 percent increase year-over-year, and its AI-related revenues surged by 247.5 percent to reach $2.6 billion.
SpaceX Financial Status and High Valuation
Despite its strong growth and vertical integration, the company reported a per-share loss of $541 million, maintaining its unprofitable structure with a market capitalization of $1.9 trillion, and its shares are trading below their IPO price.
Intel's Second Quarter Performance
Semiconductor leader Intel increased its revenue by 25 percent year-over-year to $16.1 billion in the second quarter and recorded an adjusted earnings per share of $0.42.
Benefiting from the demand for server center central processing units driven by the rise of artificial intelligence agents, the company is positively impacted by the shift in the GPU-to-CPU ratio.
Competition and Valuation Challenges for Intel
Engaged in fierce competition with Nvidia and Advanced Micro Devices, Intel also faces manufacturing issues while trading at 72.5 times forward earnings, presenting an expensive appearance relative to the information technology sector average.