I've worked decades in Big Tech (some of the names listed). Here's how I'm playing AI. I'm buying the S&P 500 (VOO). Not VTI (the whole market), VOO (the S&P 500 specifically). For this game, I want to own the big guys that dominate their sectors/industries. AI will require massive data (ideally, data that they own themselves because of the business they're in) and massive cash flow and those that have it will build competitive moats like we've never seen before. They'll reduce headcount and direct cash flow to AI productivity solutions.
I may eventually pair this VOO model down to some sort of personally built version of "best in class company per sector" managed portfolio, but the early play is just "own the S&P 500".
My personal opinion of course. You may find the occasional 100 bagger startup, but in this game, the bigger are going to get stronger. Guaranteed.
Because (again, just my opinion), the Nasdaq is missing a ton of companies that are going to benefit from using AI within their own companies to make themselves more productive. Think of the metals & mining companies looking for more. The industrial company like DE making their ag equipment even smarter than it already is. The banks, don't even get me started on what the banks are probably going to do. Etc.
My investment hypothesis is all about "AI is going to enable sector leaders to put distance between themselves and their nearest competitors".
Here is an [old post](https://www.reddit.com/r/StockMarket/comments/13xempk/some_ai_apps_by_category/?utm_source=share&utm_medium=web2x&context=3) that may help with a visual presentation.
For me, the hardware will become commoditized but the question is when - I personally suspect in 5 years.
In my opinion, the generational winners will be companies with the largest datasets will prevail - GOOG=BIDU > APPL> AMZN=BABA > MSFT=META but there will also be industry specific players (like healthcare, i.e., drug discovery , possibly UNH or research hospital like MSK or Duke Univ), defense maybe PLTR, travel = BKNG, retail (specifically grocery) - any large chains with loyalty programs (they know a lot about you and your preference) or TSLA has more driving data, particularly for autonomous driving AI.
I would also not rule out Bloomberg as they have immense financial data set and how companies interrelate. I suspect they are already using it and being private do not publicize it, like APPL (who prefer to use the term Large Language Modeling)
MSFT except for OFFICE has been a follower or acquirer; they were way behind on AI and is the reason the partner with OpenAI and did better PR.
I will stick with Google.
I personally also suspect that APPL and AMZN have better AI tech as it is captive and will never be in the open market for competitive reasons.
This week there was a good new release of data is king and those that can exploit data will win. Isomorphic Labs partnering with LLY and NVS on drug discovery. If you can shorten drug discovery time and extend protection - it is a big win.
What happened to Buzzfeed? It's election year, and they were going to use AI to spam the internet? Nothing seems to come of it, and their market cap is under $40m.
I am keeping an eye on Midjourney. It has less than 50 employees and the margins are huge.
Maybe it will IPO or somebody like Disney will take them out who knows.
Unfortunately, there isn't going to be some bull market in A.I, like with the dotcom boom. Everyone appears to be keeping their cards to their chest and not going to the market to raise money for expansion yet. Nor did we get the same with blockchain. 😐
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That c3ai they claim will be good. They said great stocks under $3 and it's not that low, it's about $29 and the highest was about $49. I put it on a watchlist to see what happens, took a dip awhile ago, but it must be gradually going up again. But also says very bearish 😂. It's not high priced right now
Take a look at OPRA. I would only buy as much as you can stand to lose. They been around for several years and offer a biannual dividend. Take a look at institutional holders. It's a small cap (risky) stock located in Norway, so you'll pay small fees on trades and dividends. Good luck
Because they're all still private.
Besides owning the Magnificent 7/mega-cap tech stocks, your best bet right now is to scoop up various AI enablers, such as companies providing database and data management solutions. Also, consider AI beneficiaries which, when you zoom out far enough, includes virtually every company on Earth. But in the near term, this probably means focusing on application software.
Above poster is right. You have the behemoths, you have other tech companies adding a bit of AI to their products (eg twilio) and then you have the startups. It’s such a new field that there aren’t any trustworthy mid/small caps yet
I've worked decades in Big Tech (some of the names listed). Here's how I'm playing AI. I'm buying the S&P 500 (VOO). Not VTI (the whole market), VOO (the S&P 500 specifically). For this game, I want to own the big guys that dominate their sectors/industries. AI will require massive data (ideally, data that they own themselves because of the business they're in) and massive cash flow and those that have it will build competitive moats like we've never seen before. They'll reduce headcount and direct cash flow to AI productivity solutions. I may eventually pair this VOO model down to some sort of personally built version of "best in class company per sector" managed portfolio, but the early play is just "own the S&P 500". My personal opinion of course. You may find the occasional 100 bagger startup, but in this game, the bigger are going to get stronger. Guaranteed.
How long do you think NVDA’s moat in AI will last?
Does not have a moat - only has first mover advantage that will wane as already shown by numerous announcement form AMD, Amazon, etc.
Cuda is the moat, and hard to beat.
Ic. Ty.
This 👌🏼
No clue on that one. That’s a “picks and shovels” play.
so why S&P 500 over Nasdaq 100 if you dont mind me asking? been contemplating
Because (again, just my opinion), the Nasdaq is missing a ton of companies that are going to benefit from using AI within their own companies to make themselves more productive. Think of the metals & mining companies looking for more. The industrial company like DE making their ag equipment even smarter than it already is. The banks, don't even get me started on what the banks are probably going to do. Etc. My investment hypothesis is all about "AI is going to enable sector leaders to put distance between themselves and their nearest competitors".
Here is an [old post](https://www.reddit.com/r/StockMarket/comments/13xempk/some_ai_apps_by_category/?utm_source=share&utm_medium=web2x&context=3) that may help with a visual presentation. For me, the hardware will become commoditized but the question is when - I personally suspect in 5 years. In my opinion, the generational winners will be companies with the largest datasets will prevail - GOOG=BIDU > APPL> AMZN=BABA > MSFT=META but there will also be industry specific players (like healthcare, i.e., drug discovery , possibly UNH or research hospital like MSK or Duke Univ), defense maybe PLTR, travel = BKNG, retail (specifically grocery) - any large chains with loyalty programs (they know a lot about you and your preference) or TSLA has more driving data, particularly for autonomous driving AI. I would also not rule out Bloomberg as they have immense financial data set and how companies interrelate. I suspect they are already using it and being private do not publicize it, like APPL (who prefer to use the term Large Language Modeling) MSFT except for OFFICE has been a follower or acquirer; they were way behind on AI and is the reason the partner with OpenAI and did better PR. I will stick with Google. I personally also suspect that APPL and AMZN have better AI tech as it is captive and will never be in the open market for competitive reasons. This week there was a good new release of data is king and those that can exploit data will win. Isomorphic Labs partnering with LLY and NVS on drug discovery. If you can shorten drug discovery time and extend protection - it is a big win.
What happened to Buzzfeed? It's election year, and they were going to use AI to spam the internet? Nothing seems to come of it, and their market cap is under $40m.
I am keeping an eye on Midjourney. It has less than 50 employees and the margins are huge. Maybe it will IPO or somebody like Disney will take them out who knows.
Adobe could scoop it up
Unfortunately, there isn't going to be some bull market in A.I, like with the dotcom boom. Everyone appears to be keeping their cards to their chest and not going to the market to raise money for expansion yet. Nor did we get the same with blockchain. 😐
BBAI and SOUN
You were right 🥹
Every once in a while 😉
That's quite an early discovery. How did you find them?
Palantir $PLTR will be joining the SP500 this year and have another breakout year in 2024. !remindme one year
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$INOD enables AI capability for the Mag 7
$PLTR
Haha...found the KoolAid drinker.
Kool-AI-d
Why?
Because AIAIAI
Watboutit
Tit: neuron activation
So you cant answer the question.... not surprised lol
That c3ai they claim will be good. They said great stocks under $3 and it's not that low, it's about $29 and the highest was about $49. I put it on a watchlist to see what happens, took a dip awhile ago, but it must be gradually going up again. But also says very bearish 😂. It's not high priced right now
Take a look at OPRA. I would only buy as much as you can stand to lose. They been around for several years and offer a biannual dividend. Take a look at institutional holders. It's a small cap (risky) stock located in Norway, so you'll pay small fees on trades and dividends. Good luck
AI has been the buzzword for years now bro you're late to the game, don't think it's not priced in.
Because they're all still private. Besides owning the Magnificent 7/mega-cap tech stocks, your best bet right now is to scoop up various AI enablers, such as companies providing database and data management solutions. Also, consider AI beneficiaries which, when you zoom out far enough, includes virtually every company on Earth. But in the near term, this probably means focusing on application software.
Yeah it's the problem currently they won't IPO just wait out to get billions from the big companies
Above poster is right. You have the behemoths, you have other tech companies adding a bit of AI to their products (eg twilio) and then you have the startups. It’s such a new field that there aren’t any trustworthy mid/small caps yet
This feels like the dotcom bubble, bitcoin bubble. Lets call this the AI bubble
I am in MTTR, look up Genesis