EXCLUSIVE: AI Bubble Fears Could Be Overdone — 56% Of Benzinga Readers See Potential, Pick Palantir Stock To Outperform

Some investors and analysts warn that the artificial intelligence sector could be a bubble set to burst in the future.

What Happened: Companies that offer investors exposure to the growth of AI use cases have been outperformers of broad stock market indexes in recent years.

However, fears of a bubble for artificial intelligence stocks may be overdone according to a new Benzinga Poll.

"What do you think about the AI investment opportunity?" Benzinga asked.

The results were:

• Just the beginning, lots potential ahead: 56%
• Missed the bottom, but still plenty of upside: 32%
• Bubble about to burst: 12%

The poll found that most Benzinga readers still see potential ahead for stocks considered to benefit from AI or companies that have launched artificial intelligence products.

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Top AI Stocks: While NVIDIA Corporation NVDA gets the headlines as a top AI stock, Benzinga asked readers for their thoughts on several other stocks considered to be winners in the artificial intelligence sector.

"Which of these non-Mag 7 AI-related stocks will outperform in the coming year?"

• Palantir Technologies PLTR: 32%
• Advanced Micro Devices AMD: 28%
• Taiwan Semiconductor Manufacturing TSM: 22%
• Intel Corporation INTC: 8%
• C3.ai AI: 9%

The poll found that Palantir was picked as the winner among five non-mag 7 stocks that are viewed as winners in the AI sector. Advanced Micro Devices ranked closely behind in the poll.

Here's a look at the year-to-date performance of the five stocks:

• Palantir: +81.7%
• Advanced Micro Devices: Flat
• Taiwan Semiconductor: +68.3%
• Intel: -58.7%
• C3.ai: -10.1%

The year-to-date performance shows that readers picked the top-performing stock of the five as their pick to outperform in the coming year.

Ranking last in the poll was Intel, which has struggled and is down over 50% year-to-date.

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The study was conducted by Benzinga on Aug. 13 and Aug. 14, 2024, and included the responses of a diverse population of adults 18 or older. Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from 138 adults.