Kroger Joins the AI Stocks League Alongside Nvidia

Kroger is now an AI stock after the company mentioned AI eight times in their conference call. The grocer’s explanation of how AI will allow them to get better at substituting products, understanding what customers want, and creating better search results failed to impress the market, with the stock dropping 2.7%. Other companies, such as Lennar, are also exploring ways to incorporate AI into their businesses. However, choosing AI winners might not be as easy as it seems. While Nvidia is an obvious choice, other companies, such as AMD, are playing catch-up. Moreover, AI winners might not always be the winners. For instance, search traffic for AI imaging products has dropped by half from their peak and could be an indicator for text-based devices. Société Générale strategist Manish Kabra suggests using a basket of stocks to bet on continued AI gains instead of individual stocks, which can help dilute the impact of companies that try to position themselves as beneficiaries of the technology.