3 AI Stocks to Still Buy If Inflation Stays Sticky
Yahoo Finance ·
The U.S. inflation rate rose 4.2% year over year in May, marking its highest rate in three years and staying far above the Fed's target of 2%. To rein in inflation, the Fed -- which kept its benchmark rates unchanged in the first half of the year -- might need to raise rates again. Higher rates could drive investors away from higher-growth AI stocks and toward more conservative investments. However, I believe three of those AI stocks -- Nvidia ( NVDA 2.30% ) , CoreWeave ( CRWV 4.67% ) , and Broadcom ( AVGO 2.81% ) -- will still be worth buying on any short-term softness caused by inflation or fears of higher rates. Nvidia, the world's largest producer of data center GPUs, still sells the best picks and shovels for training large language models (LLMs). It also locks in its customers through its proprietary Compute Unified Device Architecture (CUDA) parallel computing platform and other services.
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