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  • Jonathan Poyer

There is (Much) More to AI Markets than NVIDIA - And That Dip Might Mean a Good Time to Buy




AI & Robotics Update:


Companies such as Nvidia, Microsoft, Google and SuperMicro have led investment in AI over the past 18-months. The small group of stocks have become crowded pushing valuations extremely high and have recently experienced a pullback. I do not believe it is too late to buy the large players like Nvidia as they are poised to have significant growth over the years to come but buying on pullback would the best strategy.



There is a lot of competition coming to the AI driven microchip market, so it is beneficial to also look to other AI investments. We will be discussing these opportunities in a series of newsletters.


Voice Artificial Intelligence 


AI enabled voice recognition has become a critical AI tool used in multiple industries. ChatGPT recently released Whisper which can transcribe and translate speech and commands in multiple languages with incredible accuracy. In healthcare, apps can detect psychological issues by the sound of your voice and soon will be able to make a diagnosis based on the sound of a cough. This voice recognition technology is also being used in restaurants for ordering, the smart home, automobiles, sales marketing and a multitude of other industries.


Stocks to watch:


·        SoundHound AI (SOUN)

·        RingCentral (RNG)

·        Salesforce (CRM)


 

Big data and the cloud


AI requires a massive amount of big data processing, analytics and warehousing. The ability to manage and put to use the amount of data produced by AI is key to the ecosystem. Enterprises have been stunned by the sudden necessity to build out AI tools and most do not even have the internal capability of taking full advantage of AI. Outsourcing this task to companies who are already setup to do this will be the first stage of investment in this area. Wedbush analyst Daniel Ives estimates that "AI and related purchases will comprise 8% to 10% of IT budgets in 2024 vs. less than 1% in 2023." In previous reports, Ives estimated that every $1 spent on Nvidia chips could eventually drive an additional $10 to $12 in broader software and IT services spending.


Stocks to watch:


·        Dynatrace (DT)

·        Teradata (TDC)

·        MongoDB (MDB)



Healthcare & Aerospace:


Healthcare and Aerospace/Defense applications are among the fastest growing areas of Robotics and Automation.  Check out these short videos from two leaders in these areas.

 

Intuitive Surgical da Vinci 5 / click HERE

 AeroVironment Switchblade 600 Loitering Munitions System / click HERE

 

Timing cutting edge markets can be difficult, but missing out on proven technologies with rapid adoption rates means it might be wise to plan to stomach volatility for long-term success.

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