As AI Is Driving the Market, It's Time to Think Bigger on AI
$NVIDIA (NVDA.US)$ is close to breaching $1 trillion in market capitalization, making it the first U.S. chipmaker to join the trillion-dollar club.
The gaming and AI chip company's shares rose 4.5% in trading before the bell on Tuesday.
Artificial intelligence-related stocks like Nvidia have soared this year, but according to one research firm there's a portion of financial markets that hasn't heavily jumped into the buying frenzy: individual investors.
Our in-house US equity positioning shows retail investors remain on the sidelines despite the recent AI craze," Vanda Research said in a note last week, adding that institutional investors were the primary drivers of demand for AI stocks.
Dane, a Goldman Sachs tech portfolio manager, sees four basic ways to play the opportunity in AI. There are pick-and-shovel plays, which enable data centers to run these AI workloads. There are infrastructure needs around AI, "given that data is the key to all this." There are security firms. And there are applications that will benefit from the addition of AI.
The pick-and-shovel category: $Marvell Technology (MRVL.US)$ makes chips used in data center connectivity. Their chips, Dane says, assure workloads are distributed fast and efficiently.
AI workloads are memory intensive, which is bullish for DRAM and flash memory giant $Micron Technology (MU.US)$.
For data technology plays: Dane says companies want to train models on their own internal data, without sharing intelligence with the world. That requires "cleaning and sandboxing" data, he says, which is a boost to companies like $Snowflake (SNOW.US)$ and $Datadog (DDOG.US)$ that help companies warehouse and analyze information.
In security: Dane's top pick to protect against the new threat is $Palo Alto Networks (PANW.US)$. Dane says Palo Alto has data on "threat vectors" that dwarf anything their customers could compile. "They are going to run AI models across that data to identify threats earlier, faster, and better than any other companies.” He's also bullish on $Zscaler (ZS.US)$, a cloud security software company.
The applications: "This is the earliest area, but will be the biggest over time," Dane says. "We're looking for the obvious places these tools can get deployed in a responsible and safe way." One stock he likes is $HubSpot (HUBS.US)$, which provides customer relationship software for small and medium-size businesses. He thinks HubSpot can use AI to make its customers more productive and efficient in their marketing spend.
Source: YahooFinance; Goldman Sachs; Barron's
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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nguyen thi kim huong :
Npherno Dude77 : Lol why?
beedeebee : so overpriced
nutshell555 :
bossladdyyNeenahR : sign me up
FearGreed : AI fishing ponds. The enablers are the hottest players right now, and the companies that apply AI successfully in specific data rich verticals will be the long term winners. Fintech and biotech are promising verticals.
杨过20 : The banned companies are completely unaffiliated with the top 500, so you are willing to fight with half your life
... No matter how much you enjoy dancing now...