Is now the time to buy high-profile AI stocks?

NVIDIA's stock price began with a 7% drop, but it began to rise 2.1% in response to economic indicators that exceeded expectations. Amid geopolitical risks and valuation concerns, investors are moving away from mega-tech stocks such as Alphabet and Tesla, which are leader companies in artificial intelligence (AI), and recent financial reports of Alphabet and Tesla are also spurring selling pressure.

NVIDIA's stock price is currently falling in 4 of the 5 most recent daily trading sessions. The company's stock price is currently down about 17% from its peak on 6/18. Is now the time to buy high-profile AI stocks?

NVIDIA is a stock that affects the overall performance of the stock market, and is the most influential company. The company's graphics processing units (GPUs) and other accelerated computing technologies have become the main platforms for enhancing advanced AI applications.

The company's existing strengths in data center computing technology have expanded due to a rapid increase in demand for AI services, and the business has greatly increased sales and profits in line with this trend. Meanwhile, since the astonishing rise of artificial intelligence technology is a relatively recent phenomenon, it is difficult to predict future performance and valuation.

Investors seek to evaluate economic opportunities created by advances in AI technology, so there is a high possibility that AI stock valuations will fluctuate at a considerable level over the next few years. However, NVIDIA has a strong competitive advantage thanks to category-leading GPUs and related software platforms, and there is a good chance that the company will maintain its dominant position in the most important categories of artificial intelligence hardware.

For long-term investors who want to build exposure to hardware technology that supports major AI trends, the dollar cost averaging approach to NVIDIA stocks seems like a smart move right now.