3 Undervalued Artificial Intelligence Stocks

Plus: Why Fed rate hikes may be history, is the coast clear for stocks, what to watch in Nvidia earnings this week. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=49831&elqTrackId=6cc0bcc167aa4fe696d2ae4e18288774&elq=1bdf871d515f4e95ad04ab874086691b&elqaid=49831&elqat=1&elqCampaignId=24902) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: [3 Undervalued Artificial Intelligence Stocks]( [October CPI Report Cements End to Fed Rate Hikes With Inflation Easing]( [Why We Expect Inflation to Fall in 2024]( [Markets Brief: Rate Hikes May be Over, But is the Coast Clear for Stocks?]( [Is Nvidia Stock a Buy Ahead of Earnings?]( Relief rally! The tables have certainly turned for the stock and bond markets, with back-to-back sets of good news on the economy. First came the [October jobs report]( which showed cooling in the red-hot jobs market. Then this past week came the October Consumer Price Index report, which [offered better-than-expected news on inflation](. The markets rallied big on the CPI report, as investors believed that with inflation moderating, the Fed’s rate cuts are now history. In addition, bond markets began looking ahead to more aggressive rate cuts next year. Preston Caldwell, chief U.S. economist at Morningstar, has been in that camp. You can get his take on when the Fed will start cutting rates [here]( or check out this [quick video](. More broadly, Caldwell outlines the case for why inflation will[decline next year](. While investors cheered the news, some market watchers urge caution. As [Sarah Hansen writes]( while the outlook is positive if Fed rate cuts are in the rear-view mirror, the coast may not be completely clear. Meanwhile, we’ve just about wrapped up corporate earnings season, with results suggesting the earnings recession is also behind us. However, one very big name has yet to report. Nvidia is up a stunning 238% this year, and we’ve got a [preview of what you]( should be watching for Tuesday after the bell, along with our outlook for the company’s stock. Speaking of Nvidia, the primary catalyst for its monster rally has been the frenzy over artificial intelligence. This theme could have many, many years to run, so how can investors play it? We’ve got an overview of the AI investing landscape, and offer [up three undervalued stocks]( in this hot space, along with two other names investors shouldn’t ignore. (Hint: We’ve mentioned one here!) That’s it for this week! As always, check out our [Markets page]( for our latest coverage and live stock market updates along with our [weekly calendar]( of key upcoming data and events. Did a friend forward this email? [Sign up here](. [3 Undervalued Artificial Intelligence Stocks]( [3 Undervalued Artificial Intelligence Stocks]( Plus two dominant AI names that tech stock investors can’t ignore. Jülide Sengil [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [Markets Brief: Rate Hikes May Be Over, But Is the Coast Clear for Stocks?]( [Markets Brief: Rate Hikes May Be Over, But Is the Coast Clear for Stocks?]( Bond traders are pricing in cuts by mid-2024, but the Fed hasn’t beaten inflation just yet. Sarah Hansen [Weekly Markets Planner: Economics Calendar, Company Earnings, Investor Relations Events]( [Weekly Markets Planner: Economics Calendar, Company Earnings, Investor Relations Events]( FOMC minutes, Nvidia, and Thanksgiving market hours. [5 Themes From Q3 Earnings Season]( [5 Themes From Q3 Earnings Season]( Consumer spending is down, defense stocks are up, and more. Michael Field [6 Gold-Rated Funds With Big Yields]( [6 Gold-Rated Funds With Big Yields]( No need to stretch for yield when well-run, risk-managed funds have large yields. Russel Kinnel [6 Bond Funds for Navigating Inflation]( [6 Bond Funds for Navigating Inflation]( These inflation-fighting options can help fend off the negative impact of rising prices. Paul Olmsted [Is Groupon Stock a Buy, a Sell, or Fairly Valued After Earnings?]( [Is Groupon Stock a Buy, a Sell, or Fairly Valued After Earnings?]( With a decline in billings and a planned cash raise, here’s what we think of Groupon’s stock. Ali Mogharabi [Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?]( The data center business and artificial intelligence are the focus for Nvidia’s earnings report. Brian Colello [October CPI Report Shows Inflation at a 3.2% Annual Rate, Better Than Expected]( [October CPI Report Shows Inflation at a 3.2% Annual Rate, Better Than Expected]( Core CPI rose at 4.0% annual rate. Sarah Hansen [After Earnings, Is Disney Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Disney Stock a Buy, a Sell, or Fairly Valued?]( With free cash flow nearing pre-pandemic numbers, here’s what we think of Disney stock Matthew Dolgin [After Earnings, Is Etsy Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Etsy Stock a Buy, a Sell, or Fairly Valued?]( With consumers spending less, here’s what we think of Etsy’s stock. Sean Dunlop [Top 10 Tax-Loss Swaps to Make Before Year-End]( [Top 10 Tax-Loss Swaps to Make Before Year-End]( Before the ball drops on New Year’s, reduce next year’s tax bill by selling your losers and swapping into undervalued stocks. David Sekera [Inflation News: Cooler Report Opens Door to Interest-Rate Cuts in 2024]( [Inflation News: Cooler Report Opens Door to Interest-Rate Cuts in 2024]( Also, the trend that’s standing out as some price pressures ease. Preston Caldwell, Ivanna Hampton [5 Undervalued Stocks to Buy After They’ve Sold Off]( [5 Undervalued Stocks to Buy After They’ve Sold Off]( Plus, inflation reports we’re watching and one industry we think the market is wrong about. David Sekera, Susan Dziubinski [Why Market-Timing Fails]( [Why Market-Timing Fails]( The culprits are 1) opportunity cost and 2) unreliable signals. John Rekenthaler [John Rekenthaler and Amy Arnott: What’s a Safe Retirement Spending Rate Today?]( [John Rekenthaler and Amy Arnott: What’s a Safe Retirement Spending Rate Today?]( Amy Arnott and John Rekenthaler discuss Morningstar’s latest research, including flexible withdrawal strategies, guaranteed income sources, and TIPS ladders. Christine Benz, Jeffrey Ptak [10 Best Growth Stocks to Buy for the Long Term]( [10 Best Growth Stocks to Buy for the Long Term]( The stocks of these high-quality growth companies look undervalued today. Margaret Giles [Must-Knows About Employee Stock Options]( [Must-Knows About Employee Stock Options]( How to balance the tax and investment considerations. Christine Benz [What Does a Warmer Future Mean for Oil & Gas Stocks?]( [What Does a Warmer Future Mean for Oil & Gas Stocks?]( Ahead of the COP28 climate summit, here are three energy firms that look attractive if the world falls short of its carbon reduction goals. Adam Fleck Chart of the Week [Here’s Why Active ETFs Are So Hot Right Now]( [Here’s Why Active ETFs Are So Hot Right Now]( A constellation of factors have powered active ETFs’ meteoric rise. Ryan Jackson [Read More]( Share: [facebook]( [twitter]( [linkedin]( Recent Earnings [Walmart: Top Line Expands as Consumers Seek Value Amid Tighter Economic Conditions]( [Target: Strong Gross Margin Recovery Helps Offset Softening Consumer Demand]( [Berkshire Hathaway: Sells Out of GM, P&G, Johnson & Johnson, and Other Longtime Holdings]( [Home Depot: Unsettled Macro Pinches Demand, Posing Near-Term Pressures]( [Macy’s: Progress on Key Initiatives Going Into Holiday Season]( [Palo Alto: We Look Past the Billings Wobble as It Clocks Another Strong Period]( [Cisco: Still Like Long-Term Opportunity Despite Lowered Outlook]( Future-Proof Your Strategy With Morningstar Investor Build a portfolio that's durable, no matter what the market throws your way. 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