Artificial intelligence is the buzzword of 2023, and that has AI stocks exploding higher. Some names, like Nvidia (NASDAQ:NVDA) are a real driving force in AI. Others are just over-hyped AI stocks riding the coattails of giants ever-higher. Either way, we’re starting to see frothy price action among risky AI stocks, which has indirectly also been pushing the markets higher.

Are these AI stocks to sell?

To be honest, I don’t like short selling into some of these massive moves higher, but investors don’t have to. That’s because even if they don’t agree with the rally, timing the pullback is very difficult to do on rallies like this. In this case, I do believe in the long-term potential of AI (and have championed names like Nvidia for years because of it), but I don’t believe in the rally we’re seeing across the board.

Let’s look at a few of the riskiest AI stocks right now, considering the recent violent rally in this sector.

Advanced Micro Devices (AMD)

I really like Advanced Micro Devices (NASDAQ:AMD), and over the years I have advocated for owning both AMD and Nvidia. Simply put, the two were out-dueling Intel (NASDAQ:INTC) and taking market share. Additionally, AMD’s CEO Lisa Su has done a phenomenal job managing the firm.

That said, I think AMD may be riding the AI coattails of Nvidia without necessarily having the same catalysts in play — at least, not yet.

When Nvidia reported earnings on May 24, the quarter was fine, but it was the company’s guidance that really blew away investors’ expectations. For the second quarter, management said it expects revenue of roughly $11 billion vs. consensus expectations of just $7.1 billion.

Conversely, AMD reported less-impressive results, while guiding for second quarter revenue of $5.3 billion, plus or minus $300 million. However, if we assume $5.3 billion as the midpoint, that was notably short of the $5.52 billion consensus expectation.

Shares dumped lower on May 3 following the results, but at last week’s high, the stock was up more than 60% from the post-earnings low. AI chatter, Nvidia’s results and reports about AMD working with Microsoft (NASDAQ:MSFT) on an AI chip helped spur the rally.

Again, I’m not saying AMD is a terrible firm. In fact, I like the company quite a bit. But it seems to not have the same high-quality AI catalyst quite yet. The company’s own guidance alluded to as much.

C3.ai (AI)

C3.ai (NYSE:AI) has “AI” right there in its name and ticker, and yet, remains quite volatile. The firm says:

“C3 AI is a leading Enterprise AI software provider for accelerating digital transformation. The proven C3 AI Platform provides comprehensive services to build enterprise-scale AI applications more efficiently and cost-effectively than alternative approaches.”

However, is business really climbing on the company’s artificial intelligence offerings?

Shares of AI stock exploded higher, rallying more than 160% from its low on May 3 to its high on May 30 ahead of earnings on May 31. The firm delivered a better-than-expected loss per share and beat revenue expectations with growth of 0.1%. However, guidance disappointed investors.

Management’s fiscal Q1 outlook of $70 million to $72.5 million was in-line with estimates, although its full-year outlook easily topped expectations.

Still, given the blowout guidance we saw from Nvidia, investors’ expectations were much higher than what C3.ai delivered, particularly after its massive rally.

Marvell Technologies (MRVL)

Marvell Technologies (NASDAQ:MRVL) has enjoyed a strong rebound off the Covid-19 low, climbing almost 500%. However, the stock then fell more than 60% to its 2022 low. Bulls have been rewarded for their patience though, as Marvell has come roaring back to life.

Shares jumped 7.5% on May 25, ahead of its earnings report, then soared more than 32% in the next session. For the week, shares climbed 44%, although they’ve been more mixed in recent trading.

On the firm’s conference call, CEO Matt Murphy said, “Generative AI is rapidly driving new applications and changing the investment priorities for our cloud customers.”

The most interesting part? Analysts expect revenue to fall almost 7% this year and for earnings to contract more than 27%. Further, revenue and earnings guidance for next quarter of $1.33 billion and 32 cents a share beat estimates of $1.3 billion and 29 cents a share, respectively.

Apparently, these modest beats were enough for investors to overlook the year-over-year declines, with the stock rallying 42.5% over two days. This rally has sent MRVL stock higher by about 84% from its April 25 low to the May 30 high. That’s far too much, too fast, in my view.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.