Zhang Ziyi's script skills (what else can AI invest in besides Microsoft Nvidia? In 1996, Zhang
catalog: 1. List of artificial intelligence stock leaders 2. List of ...
Editor's note: This article is from the WeChat official account Barronschna Weekly (ID: Barronschna), written by Eric J. Savitz, and edited by Guo Liqun. Chuangye Bang has been authorized to release the AI investment boom to continue to attract investors to find new investment targets. From now on, investors need to break the inherent thinking and become more imaginative.
The most common bet is on well-known companies, and it seems that everyone holds their stock. NVDA is recognized as a big winner. The company produces graphics processors for training large language models, which are the core of generative artificial intelligence. So far this year, NVDA's stock price has more than doubled, and it is currently ranked fifth among the most valuable technology stocks, Leading Meta Platforms (META) and Tesla (TSLA).
At the beginning of the AI investment boom sweeping the world, Microsoft (MSFT) was the preferred stock in the market. The company held a large stake in ChatGPT developer OpenAI. In addition, Microsoft has also introduced AI features in a series of applications. So far this year, Microsoft's stock price has risen 33%, with a market value of $2.4 trillion, second only to Apple.
After Microsoft launched the artificial intelligence version of Bing earlier this year, Alphabet's (GOOGL) stock was briefly sold off. However, Alphabet has been investing in artificial intelligence for at least 10 years and recently announced its progress in artificial intelligence. Alphabet has risen 39% so far this year.
Another stock that surged was Oracle (ORCL), which further expanded its partnership with Nvidia to run strategic NVIDIA AI applications on the new Oracle Cloud Infrastructure (OCI) Supercluster.
NVIDIA has chosen OCI as its ultra large-scale cloud technology provider, providing a large-scale AI supercomputing service NVIDIA DGX Cloud. In addition, NVIDIA is running its generative AI cloud service NVIDIA AI Foundations, which is provided through OCI based DGX Cloud.
Some AI stocks that have gained popularity among retail investors but are highly speculative have also surged in the past week. Enterprise software manufacturer C3.ai (AI) has risen by 30%, data analysis company Palantir Technologies (PLTR) has risen by 23%, and voice AI company SoundHound (SOUN) has risen by 10%.
However, if artificial intelligence can become a world changing technology like the internet, cloud computing, smartphones, electricity, and air travel, then investors should also be able to invest in artificial intelligence through other means. Brook Dane, the technology portfolio manager at Goldman Sachs, said, "I have been investing in the technology industry for over 30 years, and artificial intelligence is one of the most exciting developments I have ever seen.
The power of AI models and the tremendous changes they have brought to the productivity of knowledge worker are far-reaching, and we are currently working to find the next batch of AI winners. "However, Diane pointed out that the relevant investment is still in a" very early stage. "Microsoft said on the recent financial report conference call that it is expected that the revenue of Azure, the cloud computing business, will grow by 26% to 27% year on year in the next quarter, Among them, artificial intelligence services account for about 1 percentage point.
For Microsoft, which has a total quarterly revenue of approximately $55 billion, this means an increase of $150 million in revenue, which is a very small proportion. Diane believes that there are four basic ways to participate in investment opportunities in the field of artificial intelligence: "shovel stocks" that allow data centers to run artificial intelligence workloads; Artificial intelligence requires infrastructure, 'because data is the key to all of this'; Network security companies; Benefiting from applications that incorporate artificial intelligence capabilities.
In terms of "shovel stocks", Dane is most optimistic about Marvell Technology (MRVL), which produces data center chips. He pointed out that Marvell Technology's chips can ensure the rapid and efficient distribution of workload. Dane also believes that the trend of artificial intelligence will give a boost to software companies specializing in electronic design automation (EDA), and he is particularly optimistic about Cadence Design Systems (CDNS).
Dane also pointed out that artificial intelligence workloads are memory intensive, which is beneficial for DRAM and flash memory giant Micron Technology (MU) in terms of data technology. Dane said that he has recently discussed with many companies how to deploy artificial intelligence and saw several common themes. Dane said that these companies hope to use their internal data to train models without sharing with the outside world, This requires the use of data 'cleaning' and 'sandboxing' technologies, which is expected to provide a boost to companies such as Snowflake (SNOW) and Datadog (DDOG) that help businesses store and analyze information.
When there is a significant change in the trend of cybersecurity threats, cybersecurity companies always benefit from the new challenges that artificial intelligence will bring, because malicious individuals will use this technology to do things that you and I cannot yet imagine, and we need new forms of protection. Among cybersecurity companies, Palo Alto Networks (PANW) is Dane's preferred stock, He said, "By using artificial intelligence, the company will identify threats earlier, faster, and better than any other company.
”Dane is also optimistic about the application side of cloud security software company ZScaler (ZS). "This is the earliest field, but over time it will become the largest," Dane said. "We are looking for companies that can deploy these tools in a responsible and secure manner." Providing customer relationship software HubSpot (HUBS) for small and medium-sized enterprises is one of his optimistic companies.
Dane pointed out that HubSpot can use artificial intelligence to improve customer marketing spending efficiency. If HubSpot can achieve this, customers will be willing to spend more money on the company's products, and the stock price will gradually rise. It should be noted that this is not a comprehensive stock selection list. Barron Weekly has previously written an article introducing other companies deploying artificial intelligence software, Including Adobe (ADBE) and Multiple Neighbors (DUOL).
In addition, ServiceNow (NOW) has recently established a new partnership with Nvidia to provide better workflow management software for enterprises. The Internet has changed various industries, and artificial intelligence will also be the same (the content of this article is for reference only and does not constitute any form of investment or financial advice; there are risks in the market, so investment should be cautious.
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