AI stocks face selling pressure as SOX index drops 3.39%
NVIDIA, Broadcom, and Micron—key players in AI hardware—experienced declines, but their valuations depend on more than just stock price movements. The article argues that profit growth, forward P/E ratios, and cash flow matter more than past price increases.
Key points
- NVIDIA’s revenue hit $215.9 billion with a 56% net profit margin in fiscal 2026
- Micron’s profits fluctuate due to memory market cycles, despite a $133.2 billion revenue surge
NVIDIA reported $215.9 billion in annual revenue for the fiscal year ending January 2026, a 65% year-over-year rise, with a net profit margin of 56%. However, Micron’s profits are volatile due to memory market cycles, and Broadcom’s cash flow depends on large customer contracts. The article warns that low forward P/E ratios may not always reflect true value, especially for cyclical stocks like Micron.
The story so far
2 episodes →- AI stocks face selling pressure as SOX index drops 3.39%this story
[US AI Stock Analysis] Can you still buy AI stocks? A thorough comparison of NVIDIA, Broadcom, and Micron. The pitfalls of 'cheap AI stocks'
note.com · 12 October 2026
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