AI Power Stocks Fell 7% to 13% in a Week While Exxon and Chevron Just Hit Record Highs. Here's Which Side I'd Rather Own.
Key PointsOver the last five days, Bloom Energy is down 13% from its high, while Oklo, NuScale, and Constellation Energy are each down around 7%.
Artificial intelligence (AI) has taken center stage on both Wall Street and Main Street, but the environment may be reminiscent of the dot-com bubble that burst a decade ago. Several AI-focused companies such as Oklo, NuScale Power, Bloom Energy, and Constellation Energy have all seen their stock prices drop by a significant margin over the past week.
However, ExxonMobil and Chevron are currently hitting record highs. Despite the risks, the author suggests that Exxon and Chevron are the preferred investment options. The primary reason for this preference is the well-understood energy cycle, the consistent dividend increases, and the low debt-to-equity ratios of Exxon and Chevron.
The author believes that these factors make Exxon and Chevron better positioned to weather any future fluctuations in the oil market and the AI sector.
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