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Solstice Advanced Materials Inc. (NASDAQ:SOLS) is one of the 10 Stocks Investors Are Running Away From.

Solstice extended its losing streak to a fourth consecutive day on Tuesday, slashing 8.74 percent to close at $62.10 apiece, as investors turned sour on its plan to acquire Element Solutions for $14.5 billion.

In a statement on the same day, the company said that it entered into a definitive agreement with Element for their planned merger in a cash-and-stock transaction for the said amount, including the assumption of net debt.

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Photo by Tima Miroshnichenko on Pexels

However, investors appeared lukewarm to the plan, selling off positions to slash Solstice Advanced Materials Inc.’s (NASDAQ:SOLS) share prices by as much as 11 percent in intra-day trading.

In an interview with Mad Money on CNBC, Solstice Advanced Materials Inc. (NASDAQ:SOLS) CEO David Sewell believed that the sell-off was partially triggered by deep-pocketed traders making short-term bets on both stocks in the deal, rather than doubts over the company’s merger plan.

“We know there were a lot of hedge funds, a lot of arbitrage in there. We’ve been telling the story. Reporting has been very positive on the strategic rationale for the deal,” he said, adding that the acquisition would broaden the firm’s exposure across AI infrastructure supply chain, and support its capabilities in semiconductor fabrication, advanced chip packaging, and thermal management.

While we acknowledge the risk and potential of SOLS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SOLS and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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