The Second Wave of Hot Money is Here
Here are four AI stocks that retail traders are going bananas for lately.
These retail participants are itching to get the most exposure to a batch of AI stocks that punch weight just below the tech oligarch level.
Volume remains highly positive as traders fan out to further AI stocks that didn’t benefit as much from the first tranche of hot capital.
If there is anything that could be considered a fat pitch right now in equity markets, then look no further than this collection of 4 rock-solid AI stocks that will make your heart melt.
These four stocks are gaining traction among retail investors as they search for new winners in the AI space.
- Micron (MU)
The semiconductor firm just beat its earnings and revenue targets, raking in $3.75 billion in revenue over the previous quarter.
AI servers have six to eight times the DRAAM content of a regular server and three times the NAND content which translates into elevated demand for Micron’s products.
In fact, some customers are deploying AI computing capability with substantially higher memory content.
The stock has lagged behind larger names like Nvidia and Advanced Micro Devices, but retail net purchases for Micron were 18 times their daily average, even before the company released its latest earnings report.
- Oracle (ORCL)
Oracle's stock has exploded 40% year to date with shares briefly hitting a new record after a stellar earnings report. Total revenue for the 2023 fiscal year hit $50 billion, up 18% from last year.
On Wednesday, the database company also announced new AI capabilities within several of its cloud products, leading more investors to jump in on the stock.
Retail net purchases of the stock were about 145 times the daily average before its latest earnings report.
- Adobe (ADBE)
Adobe was another to benefit from upbeat earnings, with revenue notching a $4.82 billion record in the second quarter, up around 10% from the previous year.
The developer of digital-publishing software also recently unveiled its new platform, Adobe Firefly, a generative artificial intelligence platform for content creators.
Retail net purchases of the stock were about 18 times greater than the daily average prior to its latest earnings report. The stock is up 43% from levels at the start of the year.
- Snowflake (SNOW)
The company recently expanded its partnership with Microsoft and launched a new partnership with Nvidia to implement AI into its data cloud services.
The firm's partnership with NVDA and MSFT to integrate AI tools into their suite of services was welcome by retail traders who are jumping on the stock.
The common theme with these tech companies is solely focused on positive earnings numbers and what that will do is delay the recession that everybody has been waiting for.
The bears have been talking about a recession since the stimulus spike of the lockdowns, but the US economy and corporate tech have refused to believe this false narrative.
The truth is that tech companies still do what they need to do to push earnings higher and in turn deliver higher share prices to their shareholder.
Sure, there is belt-tightening and cost efficiencies taking place, but I view this more through a prism of technology firms becoming hyper-aware of leanness instead of sacrificing quality.
Twitter was correct in laying off 80% of its workforce because that 80% isn’t worth keeping on board for the splashy wage packets they accrue.
Now that we have a second level of tech companies joining the AI bandwagon, this could trigger another leg up for tech shares.
