Kroger Joins the AI Stocks League Alongside Nvidia

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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.

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Frequently Asked Questions (FAQs) Related to the Above News

What is the latest news about Kroger?

Kroger has joined the AI stocks league alongside Nvidia after mentioning AI eight times in their conference call.

How has the market responded to Kroger's announcement?

The market response to Kroger's announcement has been underwhelming, with the stock dropping 2.7%.

Are there other companies exploring ways to incorporate AI into their businesses?

Yes, other companies such as Lennar are also exploring ways to incorporate AI into their businesses.

Is Nvidia the only AI stock worth investing in?

While Nvidia is an obvious choice for investing in AI stocks, other companies such as AMD are playing catch-up. It is difficult to predict which AI companies will emerge as winners in the long run.

Are AI winners always the winners?

No, 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.

How can investors bet on continued AI gains?

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.

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.

Meera Mehta
Meera Mehta
Meera is our dedicated writer and manager for the AI Stocks category. With her expertise in finance and a deep interest in the AI industry, Meera keeps a close eye on AI-related stocks and market trends. Her articles provide valuable insights into the financial aspects of AI, helping investors navigate this exciting and dynamic sector.

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