THE AI GOLD RUSH

(MSFT), (NVDA), (ORCL), (AMZN), (CRM), (PLTR), (MDB), (AAPL), (IBM), (META), (ADBE), (SNOW), (AI), (V), (MA), (SCHW), (KO), (PEP), (YUMC), (WMT), (JWN), (LEVI), (ULTA)

This year, the tech sector has been leading the stock market's grand parade, and riding on the high-tech float right at the front are the champions of AI. Wall Street is practically falling over itself, trying to calculate the colossal profit potential that these AI titans hold.

As investors sharpen their understanding of the colossal $800 billion AI spending tsunami gathering momentum, they're gearing up for a tech rally in the latter half of 2023.

Actually, the gold rush has only just begun, and we're all eager to see who strikes it rich. At this stage, the situation is comparable to the internet's infancy in 1995, rather than a 1999-style bubble. 

Unsurprisingly, the limelight—and the juicy stock hikes—have been snatched by the usual suspects hailing from Silicon Valley, those names that roll off our tongues when we speak of software and cloud innovation. Consider Microsoft (MSFT) and Nvidia (NVDA)—they've breezed past the broader market like it's standing still.

By 2024, though, we might witness AI occupying a sizable chunk of IT budgets - think 8% to 10%, rocketing up from a mere 1% in 2023. 

Don't take my word for it. Instead take a gander at the all-star list of potential players in this AI-dominated field. It's chock-full of familiar juggernauts, starting with the likes of Nvidia and Microsoft, extending to Oracle (ORCL), Amazon.com (AMZN), Salesforce (CRM), Palantir Technologies (PLTR), MongoDB (MDB), Apple (AAPL), International Business Machines (IBM), Meta Platforms (META), Adobe (ADBE), Snowflake (SNOW), and C3.ai (AI).

Amidst a chorus of naysayers fretting over tech valuations and a fluctuating macro environment, this is nothing less than the starting gun for a spanking new tech bull market barreling into 2024. And the engine powering this locomotive? The AI revolution, with a side of stable IT spending.

But hold on. It's not just the tech behemoths getting in on the action. A host of companies, from consumer staples to healthcare and financials, are eagerly welcoming AI into their operations.

Giants on American soil like Visa (V) and Mastercard (MA) have roped in AI to keep a hawk-eyed vigil for fraud and identity theft. Add Charles Schwab (SCHW) to the mix, where AI is the secret sauce to spicing up customer service. 

Yet, it’s not only a fintech affair. 

Many other sectors are guzzling the AI Kool-Aid to good effect. Take beverage bigwigs Coca-Cola (KO) and PepsiCo (PEP), for instance. They’re harnessing AI to peer into the crystal ball of consumer behavior and whip up marketing masterpieces. And Yum China (YUMC)? They're putting AI to work to streamline delivery routes.

Meanwhile, retail behemoth Walmart (WMT) stands as a proud trailblazer in the AI game, outpacing rivals with its voracious tech appetite. 

Although the application of AI in retail might be in its early days, but mark my words, it's poised to transform the entire shopping spectrum, often taking consumers by surprise, and triggering purchases they didn't even anticipate.

That’s why It should come as no surprise that other retailers dabbling in apparel, accessories, and beauty are also itching to deploy AI sooner rather than later. 

Nordstrom (JWN), Levi Strauss & Co. (LEVI), and Ulta Beauty (ULTA) are obvious pioneers, based on their recent showcases in industry conferences. After all, the perfect fit for footwear or the exact lipstick hue, even in the virtual world, can avert hefty return expenses and foster customer fidelity.

Now let's zoom out a bit. AI's influence is creeping into our daily lives more and more, be it the goods we see on store shelves or how we shop. The reach and potential threats of AI are still to be completely understood, given the breakneck speed at which the technology is evolving. 

But one thing's crystal clear: AI is a game-changer in practically all industries.

As we navigate this new world, let’s keep in mind that "understanding the potential limitations of Generative AI and using it judiciously is critical for both companies and investors."

Even though it might be a tad premature to separate the wheat from the chaff in terms of winners and losers, there are clear indications of certain companies striding ahead, while others may be staring down the barrel of potential threats to their existing business models.

In other words: buyer beware. Well, until our robot overlords convince us otherwise.

 

Midjourney Prompt: "AI gold rush"