It doesn't matter if you missed Nvidia, you can also check out these AI opportunities

巴倫週刊 ·  09/18 21:59

Source: Barron's

So far this year,$NVIDIA(NVDA.US)$There has been a cumulative increase of 200%. Some investors may have missed Nvidia's rise, but for investors still hoping to profit, there are many other artificial intelligence opportunities in the market. Artificial intelligence will continue to drive the development of enterprises in the next few years, but investors are now making “quick money.”

In addition to changes in interest rates and inflation, the biggest theme of this year's stock market is the sharp rise in artificial intelligence-related industries and companies. Among them, Nvidia's market sales rate has risen 40 times higher.

Investors who have caught up with Nvidia's uptrend can now consider selling one-third of their shares, taking their cost base off the “table,” and “using the dealer's money to play cards.” After all, Nvidia's rise is showing signs of losing momentum, or at least halting. Since the financial report was released on August 23, Nvidia has dropped 4%.$S&P 500 Index(.SPX.US)$There was a 1% increase over the same period.

Investors interested in artificial intelligence can look elsewhere, such as$Amazon(AMZN.US)$,$Microsoft(MSFT.US)$with$Alphabet-A(GOOGL.US)$This type of company has large data centers. These companies have purchased a large number of Nvidia chips to develop various artificial intelligence applications. However, the performance of these stocks has not been weak recently.

Relatively speaking, Microsoft's performance is weaker; so far this year, it has “only” risen by 41%. In addition to having an Azure cloud business known as “Artificial Intelligence as a Service” (AlaaS), Microsoft will also launch Microsoft 365 Copilot, an artificial intelligence assistant for Word, Excel, PowerPoint, Outlook, Teams, and other applications. According to Microsoft, early user feedback has been very positive.

Microsoft plans to charge Microsoft 365 Copilot users $30 per month. Nick Frelinghuysen (Nick Frelinghuysen), portfolio manager at Chilton Trust, said that even if only 20% of the 160 million users of Office 365 E5 (top enterprise users) chose to subscribe, this would be equivalent to annual revenue of $11.5 billion.

$Adobe(ADBE.US)$ ,$ServiceNow(NOW.US)$with$Salesforce(CRM.US)$ The stock prices of internet and software companies that use artificial intelligence have also risen sharply, so investors can turn their attention to the opportunities brought by “shoveling subsidiaries.” Frielingheisen pointed out that AI GPU servers consume seven times more power than typical data center servers, which means demand for power infrastructure will rise.

Unfortunately, this type of company has increased almost as much as Nvidia. Specializing in the production of electrical equipment for data centers$Vertiv Holdings(VRT.US)$It has risen 180% this year and is a giant in the power management field$Eaton(ETN.US)$ It's up 42%, and the latter is probably a better choice than the former, but there are better options than Eaton.

Established companies can also improve efficiency through artificial intelligence, for example,$United Parcel Service(UPS.US)$Using Artificial Intelligence to Optimize Routes and Classify Packages; Agriculture Company$Deere(DE.US)$A subscription service that sells forecasting software to farmers, which can tell farmers the best time to plant, water, or harvest based on local weather and other inputs;$UnitedHealth(UNH.US)$Use artificial intelligence to process claims or improve diagnoses. Some day, these artificial intelligence applications will revolutionize these companies, but it will take a few more years for them to be reflected in financial data.

Now is the time for a new theme.


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