With artificial intelligence (AI) becoming a game-changer in various industries, investors are looking for the next big thing while trying to hedge risky underperformers. David Keller, chief market strategist at StockCharts.com, pinpointed the AI leaders and the ones trailing behind. At the top of the list is Microsoft, which has the greatest amount of available capital to invest in AI. Shares of Microsoft are presently hovering at all-time highs around $340. Alphabet, Google’s parent company, also features on the list. While it has already gained 40% year-to-date, it remains 22% below its 2021 high, making it an ideal entry point for long-term investors looking to capitalize on AI across all its units. Nvidia, which has 80% to 95% of the market share in AI computing, leads the semiconductor space, one of the top-performing industries in 2023. Caterpillar has invested in using AI for autonomous operation of heavy equipment, while CrowdStrike Holdings is leveraging the power of AI to protect consumers and minimize cyberthreats. On the other end, payment processors PayPal and Block have struggled to offer profitable returns. While PayPal has underperformed in 2023, investors are likely to find better opportunities elsewhere. Block, run by Jack Dorsey, is yet to see a break above the 200-day moving average. Lastly, EPAM Systems and IBM represent direct investment in AI, but their performance has not generated a buzz.
In conclusion, with AI applications moving from one industry to the next, investors must look beyond traditional holdings and identify AI leaders to benefit from the next phase of growth.
Frequently Asked Questions (FAQs) Related to the Above News
Who are the top AI stock picks according to David Keller from StockCharts.com?
The top AI stock picks according to David Keller are Microsoft, Alphabet (Google's parent company), Nvidia, Caterpillar, and CrowdStrike Holdings.
What makes Microsoft a top AI stock pick?
Microsoft has the greatest amount of available capital to invest in AI, which makes it a top AI stock pick.
Why is Alphabet (Google's parent company) a good entry point for long-term investors interested in AI?
While Alphabet has already gained 40% year-to-date, it remains 22% below its 2021 high, making it an ideal entry point for long-term investors looking to capitalize on AI across all its units.
Who leads the semiconductor space in AI computing?
Nvidia leads the semiconductor space in AI computing, with 80% to 95% of the market share.
What is Caterpillar's approach to using AI?
Caterpillar has invested in using AI for autonomous operation of heavy equipment.
How is CrowdStrike Holdings using AI in their business?
CrowdStrike Holdings is leveraging the power of AI to protect consumers and minimize cyberthreats.
Which companies are the laggards in AI stocks?
The laggards in AI stocks are PayPal, Block, EPAM Systems, and IBM.
Why have PayPal and Block struggled to offer profitable returns?
PayPal has underperformed in 2023, and Block is yet to see a break above the 200-day moving average, which has led them to struggle to offer profitable returns.
Are EPAM Systems and IBM worth direct investment in AI?
While EPAM Systems and IBM represent direct investment in AI, their performance has not generated a buzz.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
