Smart Investing Newsletter

When you listen to memory chip companies like Samsung Electronics, SK Hynix, and Micron Technology discuss their businesses, they often make it sound like customer contracts—some extending as long as five years—are essentially set in stone. Unfortunately, that's not entirely true.

For years, Netflix has been the dominant force in streaming, consistently taking market share from its competitors. However, recent data suggests the competition is beginning to chip away at that lead.

Meta shares climbed last week as Wall Street became increasingly optimistic about the company's AI strategy. The stock was up about15% for the week and erased the year-to-date losses.

It's an important question to ask yourself, especially if you believe you'll know exactly when to get out before any potential correction in today's AI and semiconductor stocks.

We tend to focus on the major AI companies in the United States and assume they will be the long-term winners. However, one competitor that cannot be ignored is China. Chinese companies are making rapid progress in artificial intelligence, and they could become a serious challenge to U.S. firms.