NVIDIA is not the only one! “AI 3 Musketeers” too! US stock investment in the second half of '24 ~ 5 forward stocks vs. 5 contrarian stocks ~

Two major factors supporting the tech-led AI market
1) Observe interest rate cuts
Trends in major US economic indicators continue to support interest rate cuts by the Federal Reserve (Federal Reserve),Observations of interest rate cuts in the latter half of the year are deep-seated. The favorable market environment for tech and AI-related stocks is expected to continue in the second half。

2) Growth potential of tech and AI related stocks
The next 2 quarters of the S&P 500 index by industryExpected profit growth rateIt's stillThe two major tech industries of information technology and communication services outperform other industries。Among them, AI-related stocks are highThe benefits of the AI investment boom are expected to continue to boost the performance of related companies.

Therefore, it is likely that tech and AI-related stocks will also be favored in the second half.

On the other hand, what are the differences from the first halfThe second half of the US presidential election is in NovemberIt's holding back. Towards the presidential electionThe first TV debate was on 6/27It was done. After the debate, it became clear that Mr. Trump had the upper hand.Subsequent market trendsWhen I checked,Sectors (*) that seem to benefit from Mr. Trump's return, such as finance, health insurance, petroleum, etc. were boughtAt the same time,Tech and AI-related stocks are also strongIt was.Growth rate by industryOKInformation technology, which consists of semiconductor stocks led by Microsoft and NVIDIA, continues to maintain the first positionI did it.

Former President Trumpis famous for its protectionism,Policies such as large-scale tax cuts contributed to the stock appreciation of tech stocks at the timeconnected. Large companies such as tech generally pay large tax amounts, and the benefits of tax cuts are huge.Mr. Trump, who is aiming for a comeback, is appealing for extended tax cuts and additional tax cuts due at the end of 2025. If it becomes a reality, there is a possibility that it will be positive for tech stocks, similar to last time. Note,There is still a sense of uncertainty surrounding the US presidential electionBecause,Volatility (stock price fluctuations) may increase in the second half. In the market environment where there is the strongest sense of uncertainty, large tech stocks that have strong balance sheets, are stable, and can generate high profits tend to have an advantage.

5 progressive stocks
“AI semiconductor 3 musketeers” + 2 Big Tech companies
The 5 progressive stocks were selected based on the following criteria.

Also,AI semiconductor fieldWell, from a measure of sales scale and growth potential, it's stillNVIDIAIt sticks out and is high. Meanwhile, companies whose full-year sales related to AI semiconductors are expected to exceed 10 billion dollars, or several billion dollars, have also begun to appear. respectivelyBroadcomwithMicron Technologythat's it. Both companies are also expected to benefit from the AI investment boom in the future, and when it comes to AI semiconductors, they will start with “NVIDIA's top 1”“AI 3 Musketeers”There may also be a possibility that it will change to.

alphabetsIt has Google under its umbrella. It provides search engines, online advertising, and cloud services. Google is the world's largest search engine. Google Cloud is the top 3 cloud vendors along with AWS and Microsoft's Azure.The introduction of AI-related products and services lagged behind MicrosoftIn connection with this, there were concerns about the impact of this on online advertisements and cloud computing businesses,Business performance was unexpectedly strong. According to recent financial results,Growth in the cloud computing sector contributed, and sales exceeded market expectations. Investments in AI are contributing to boosting demand for cloud services. The management team said”I am convinced that we can handle the monetization of AI functions wellI'm doing it,” he said.

Adobeis a major software company.A company familiar with creating and editing PDFs. In the main Document Cloud business, PDF has become a global standard for automating business and consumer workflows, and Acrobat is an ideal platform for displaying, editing, sharing, and collaborating on these documents. The company is almostWe are promoting the integration of AI functions into all products and services、We are strengthening new acquisitions and monetization as a result. There were also skeptical views about the results, but the most recent financial results announcement dispelled those concerns. The management team stated that efforts to incorporate AI functions into their products are gathering support among customers, and “we will focus on changing the AI pipeline to monetization.”There is a possibility that the monetization of AI products and services will advance further。

Z scalerIsCloud-based cybersecurity company. We provide solutions that simplify and protect businesses around the world. Large investments have been made in AI since 5 to 6 years ago, and now the entire platform is supported by AI.More than 40% of Fortune 500 companies have customers. The management team expressed confidence that 85%, which is double that, can be taken into customers in the future. According to recent financial results announcements, customers with ARR (annual ordinary income) exceeding 1 million dollars increased 31% compared to the same period last year.Reflect customer expansion, etc., the company sideSales forecasts for the full fiscal year 2024 were revised upward 3 timesI did it. As for the future, it was indicated that TAM (maximum market size that can be acquired) is expected to increase by 10 billion dollars to 20 billion dollars in addition to the conventional 70 billion dollars due to new use cases and new products including AI workloads.Business performance recovery is expected to continue after turning into surplus。