Tech stocks aren't in favor with investors right now, but this weakness makes it an excellent time for investors to go bargain hunting. Nvidia makes graphics processing units (GPUs) that are used to process intense calculations quickly for uses including gaming graphics, artificial intelligence (AI), and cryptocurrency mining. A decline in demand for mining equipment will hurt Nvidia's sales.
Worry is mounting over weak consumer spending, but that argument might be mistaken as far as Nvidia is concerned.
Technology stocks have taken it on the chin lately as some investors have left the sector looking for seemingly safer bets. Here's why Amazon (NASDAQ: AMZN) and Nvidia (NASDAQ: NVDA) are two tech stocks perfectly positioned in the AI space. You may think of Amazon as an e-commerce company, but one of the driving forces behind the company's online store is artificial intelligence.