Forget Gold And Bonds: Are These 2 AI Stocks The New Safe Havens In A Volatile Market

(NASDAQ:NVDA) and Super Micro Computer, Inc. (NASDAQ:SMCI) – two AI-focused tech stocks bucked the downtrend.

This begs the question whether these stocks are assuming the traits of safe havens?

What Is Safe Haven Asset: Safe havens are those assets that retain their value or grow in value during economic downturns due to their lack of, or loose correlation with the overall economy. Bonds, gold, the U.S. dollar, Japanese yen and the Swiss franc are typical safe haven bets.

Gold, for one, has been considered a store of value. Given its limited supply, it is often considered a hedge against inflation and an asset whose value is less likely to fluctuate with the vagaries of the economy. Similarly, bonds, with their steady returns in the form of interest income as well as principal repayment, are less volatile and are often considered risk-free assets.

On Tuesday, the tech-heavy Nasdaq Composite fell 1.65% and the Nasdaq 100, an index of 100 biggest non-financial names, ended down a steeper 1.80%. Even as Apple, Tesla, Alphabet, Amazon, Meta, and Microsoft all ended notably lower, Nvidia stood tall and towering amid the ruins.

The Santa Clara, California-based company’s stock added 0.86% on Tuesday before ending at $859.64. Smaller AI plays Super Micro gained 1.53% to $1,090.82, tacking on to its 18.7% surge on Monday in reaction to the news of its S&P 500 inclusion.