{"id":545718,"date":"2026-03-26T04:36:15","date_gmt":"2026-03-26T04:36:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/545718\/"},"modified":"2026-03-26T04:36:15","modified_gmt":"2026-03-26T04:36:15","slug":"investors-dumped-these-3-ai-stocks-after-earnings-theyll-regret-it","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/545718\/","title":{"rendered":"Investors Dumped These 3 AI Stocks After Earnings. They’ll Regret It."},"content":{"rendered":"

Just because a company reports strong earnings doesn’t mean its stock is going to go up. Let’s look at three artificial intelligence (AI) stocks<\/a> that investors dumped that they’ll regret selling.<\/p>\n

Micron<\/p>\n

Micron Technology\u00a0(MU<\/a> 3.34%) reported what was arguably the best earnings report of any major AI company, yet it wasn’t enough to keep its stock from trading lower. Its fiscal second-quarter revenue surged nearly threefold to $23.9 billion, while its gross margins<\/a> climbed from 36.8% a year ago to 74.4%. And its fiscal third-quarter guidance for revenue between $32.75 billion and $34.25 billion crushed analyst expectations for $24.3 billion. <\/p>\n

The biggest reason for the sell-off appears to be a combination of profit taking and the market anticipating an end to the current super cycle in dynamic random access memory (DRAM) that is lifting prices.<\/p>\n

However, this ignores one of the most important things to come out of Micron’s earnings report: The company was able to lock in its first-ever five-year strategic customer commitment for high bandwidth memory (HBM). This is a big shift away from its customary one-year agreements, and helps add increased visibility while reducing the cyclical nature of its business. <\/p>\n

\"Micron<\/p>\n

Today’s Change<\/p>\n

(-3.34%) $-13.22<\/p>\n

Current Price<\/p>\n

$382.31<\/p>\n

Key Data Points<\/p>\n

Market Cap<\/p>\n

$446B<\/p>\n

Day’s Range<\/p>\n

$371.56 – $388.92<\/p>\n

52wk Range<\/p>\n

$61.54 – $471.34<\/p>\n

Volume<\/p>\n

2.2M<\/p>\n

Avg Vol<\/p>\n

37M<\/p>\n

Gross Margin<\/p>\n

58.54%<\/p>\n

Dividend Yield<\/p>\n

0.12%<\/p>\n

With HBM demand directly tied to the market for graphics processing units (GPU) and AI chips, there is no reason for Micron’s stock to trade at a forward price-to-earnings ratio (P\/E)<\/a> below 4.5 based on fiscal 2027 analyst estimates. Its business looks set to become less cyclical, making it a stock investors will regret selling off after earnings.<\/p>\n

Amazon<\/p>\n

Shares of Amazon (AMZN<\/a> +2.02%) sold off after earnings, despite the company seeing its growth in cloud computing<\/a> revenue accelerate and continued strong operating leverage in its e-commerce operations. The biggest focus around the business is Amazon Web Services (AWS), which saw its revenue climb 24% in the fourth quarter, its fastest rate in more than three years. <\/p>\n

\"Amazon<\/p>\n

Today’s Change<\/p>\n

(2.02%) $4.19<\/p>\n

Current Price<\/p>\n

$211.43<\/p>\n

Key Data Points<\/p>\n

Market Cap<\/p>\n

$2.2T<\/p>\n

Day’s Range<\/p>\n

$209.90 – $213.04<\/p>\n

52wk Range<\/p>\n

$161.38 – $258.60<\/p>\n

Volume<\/p>\n

1.8M<\/p>\n

Avg Vol<\/p>\n

49M<\/p>\n

Gross Margin<\/p>\n

50.29%<\/p>\n

However, investors seemed more concerned about the $200 billion in capital expenditures<\/a>\u00a0the company plans this year, largely focused on increasing AI data center capacity to help drive cloud growth. That should not be a worry, though, as Amazon has a long history of spending big to win big, and has demonstrated strong returns on its investments over the years.<\/p>\n

Partnerships with Anthropic<\/a> and OpenAI<\/a> help provide a clear path for continued strong cloud growth. At the same time, AI and robotics are driving increased efficiency in its e-commerce operations, leading to strong operating leverage in this business. <\/p>\n

Trading at a forward P\/E of 27.5, the stock is at one of its lowest historical valuations, and investors will likely regret selling off the shares after earnings.<\/p>\n

\"Data<\/p>\n

Image source: Getty Images.<\/p>\n

Microsoft<\/p>\n

Microsoft (MSFT<\/a> 0.50%) is another tech giant that sold off following its earnings, despite posting strong results. The company saw its fiscal second-quarter revenue climb 17%, led by a 39% surge in sales from its Azure cloud computing unit. It was the tenth consecutive quarter that Azure revenue has risen by 30% or more. <\/p>\n

And it’s well-positioned to continue to see strong revenue growth. The company has a huge $625 billion in commercial remaining performance obligations (RPOs), helped by a huge commitment from OpenAI, and to a lesser extent from Anthropic.<\/p>\n

\"Microsoft<\/p>\n

Today’s Change<\/p>\n

(-0.50%) $-1.88<\/p>\n

Current Price<\/p>\n

$370.86<\/p>\n

Key Data Points<\/p>\n

Market Cap<\/p>\n

$2.8T<\/p>\n

Day’s Range<\/p>\n

$369.63 – $377.06<\/p>\n

52wk Range<\/p>\n

$344.79 – $555.45<\/p>\n

Volume<\/p>\n

1.7M<\/p>\n

Avg Vol<\/p>\n

35M<\/p>\n

Gross Margin<\/p>\n

68.59%<\/p>\n

Dividend Yield<\/p>\n

0.93%<\/p>\n

Last fall, Microsoft reworked its investment with OpenAI, where it now has a 32.5% stake in the company, intellectual property rights for both its models and products through 2032, and $250 billion in additional incremental cloud computing commitments. At the same time, its software businesses are also performing well, helped by the continued adoption of its AI assistant copilots. <\/p>\n

Trading at a forward P\/E of 20.5 based on a fiscal 2027 analyst consensus, the stock is just too cheap for a premier enterprise software company that is also seeing huge growth in cloud computing revenue.<\/p>\n","protected":false},"excerpt":{"rendered":"Just because a company reports strong earnings doesn’t mean its stock is going to go up. Let’s look…\n","protected":false},"author":2,"featured_media":545719,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,74],"class_list":{"0":"post-545718","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/545718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=545718"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/545718\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/545719"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=545718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=545718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=545718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}