MicroStrategy’s recent surge has raised concerns about the company’s value and investment viability. With a focus on Bitcoin, MicroStrategy’s business model is unpredictable, making it less attractive to investors who prefer more traditional stocks.
In contrast, companies like International Business Machines (IBM) and Micron Technology are poised for success in the artificial intelligence (AI) boom. IBM’s AI expertise is unrivaled, with its latest AI-engine systems generating widespread interest. The company’s business is cyclical, but its AI-oriented mainframes will accelerate growth.
Micron Technology is another beneficiary of the AI surge. As AI machines require large amounts of memory, Micron’s products are essential for implementing AI technologies. The company is expanding its chip manufacturing facilities to capitalize on the surging demand for high-speed SDRAM and long-term flash memory storage chips.
While MicroStrategy’s stock may be tempting due to its price drop, it’s wise to consider more stable options like IBM and Micron. These companies have lower risks and are well-positioned to benefit from the AI boom. By investing in these stocks, investors can tap into the AI surge without worrying about valuation and market risks.
Source: https://www.fool.com/investing/2025/01/08/should-you-skip-microstrategy-and-buy-2-ai-stocks