(AAPL), (AMZN), (MSFT), (AVGO), (NXPI), (QCOM), (IBM), (GOOGL)

Let's be honest, the Oracle of Omaha isn't exactly known for chasing the latest tech trends. 

But when artificial intelligence (AI) came up in an interview in 2023, Buffett called it "extraordinary" – then immediately followed up with a classic dose of skepticism about its overall benefits.

Love it or hate it, Buffett's wallet has already felt the impact of AI. He holds a massive $159 billion position spread across eight AI-related stocks. 

And the funny thing is, most of those have been absolute winners this past year.

Let's start with the big fish: Apple (AAPL). We all know Buffett and his sweet tooth for Apple. 

That $156.9 billion position makes it Berkshire Hathaway's crown jewel. But with slowing iPhone sales lately, is this really about AI or just an old man's love affair with a familiar brand?

Keep in mind though that the company ain't just about slick gadgets anymore. Rumors are swirling about huge AI upgrades at the June developer conference. 

Could Siri start sounding a lot less robotic? Could Apple finally make a splash in the smart home race?  We'll find out soon enough.

Then there's Amazon (AMZN), with Berkshire holding a modest $1.8 billion stake. Okay, $1.8 billion isn't exactly pocket change, but it pales compared to Buffett's usual bets. 

Still, the fact that he's in on Amazon at all says something. The man hates stuff he doesn't understand, and he's famously admitted missing the boat on this one early.

Why the change of heart? Amazon Web Services (AWS) is where the real AI action is. This cloud computing behemoth powers a vast chunk of the internet and stands to rake in cash as AI tech needs more and more processing muscle. 

Buffett might be old school, but he clearly sees the writing on the wall here.

The next is Microsoft (MSFT). I know what you’re going to say. This company isn't technically on Berkshire's books, right? Well, that depends. 

His little secret is New England Asset Management (NEAM), a subsidiary that's got a cool $11.6 million tucked away in Microsoft. Sly move, Warren.

Why the hush-hush? It's simple. Microsoft is crushing it with AI. They've woven OpenAI's language models into everything they do, and their Azure cloud is exploding because of it.  Companies are scrambling to use that platform to build the next big AI thing.

Another under-the-radar Buffett play is Broadcom (AVGO), again thanks to NEAM. They're holding onto $9.5 million+ worth of this chipmaker.

Now, Broadcom isn't a household name, but it's supplying the nuts and bolts for the AI revolution. They specialize in custom accelerators and the kind of networking infrastructure that makes AI apps actually function at scale.  

Heard of their new XPU accelerator? Yeah,  it could be the biggest chip ever built for AI.

Another chipmaker that pops up in the NEAM wallet is NXP Semiconductors (NXPI), which has a solid $8.9 million stake. So, is this really a Buffett AI play or just a bet on tech in general?

The answer lies in where NXP gets its bread and butter. Forget smartphones – they're focused on cars, IoT gadgets, and even the infrastructure that connects it all.  

Think about it: self-driving cars, smart homes, 5G networks bursting with AI-powered data... that's where NXP could be raking it in.

There’s also Qualcomm (QCOM), often a footnote in discussions of phone tech, is on Buffett's radar as well. 

This company might not have seen the same explosive gains as other Buffett-backed AI stocks, but a $8.3 million investment isn't chump change. And that 35% growth? Not bad either.

Besides, we all know Qualcomm as the king of smartphone chips. But they're not sitting on their laurels. They're deep in the AI game and even partnering with tech giants to develop tools that help AI apps run anywhere.  

Smart move, considering how fragmented the chip market is. Could be a long-term play by Buffett – definitely one to keep an eye on.

Meanwhile, do you still remember when IBM (IBM) was the king of the AI hype machine? Well,  Buffett dumped that stock a while back, but NEAM still holds onto a cool $5 million.  

So, is this a "past its prime" play, or does Big Blue still have some AI magic up its sleeve?

Watson, their big AI platform, isn't the headline-grabber it used to be. But don't underestimate the power of established connections – plenty of companies still rely on Watson to get their feet wet with AI.  It's not cutting-edge, but it's a reliable workhorse in the AI world.

Finally, Alphabet (GOOGL). Buffett has been kicking himself for missing out on Google – we've heard that story before. At least NEAM has a modest $2.5 million stake, so it's not a complete loss.

Admittedly, Alphabet's had some embarrassing AI misfires lately. But don't write them off just yet. They're still one of the top dogs in AI development.  

And those rumors about Apple cozying up to their Gemini AI models? If true, that could be a game-changer.

Now that we've covered the big guys, the underdogs, and a few of Buffett's sneaky side bets in the AI space, here’s the most important question: are they worth your hard-earned cash right now?

Honestly, every single one of these stocks has the potential for solid long-term gains. But if, like me, you think AI is all about that cloud power, there are clear standouts.

The first is Amazon. Its AWS isn't just a side business, it's the engine driving their AI innovations. 

Then, there’s Microsoft Azure locked in a fierce battle with AWS, plus they're weaving AI into everything they touch.

And, of course, Alphabet. They may stumble sometimes, but their deep pockets and cutting-edge research mean they'll always be in the game.

Bottom line: There's no magic formula to picking AI winners, even with Buffett's billions backing them. I suggest you buy the dip in the ones I mentioned and keep the rest on your watchlist. 

 

SAN MATEO, CA – May 1, 2024 – Franklin Templeton, a global investment management leader, today announced a groundbreaking collaboration with Microsoft to develop a state-of-the-art financial AI platform. This transformative initiative will reshape the financial services landscape, blending Franklin Templeton's investment expertise with Microsoft's cutting-edge AI technology. The platform promises to redefine personalized client experiences and streamline operations within the financial industry.

Transforming Financial Services Through AI

The collaboration marks a significant turning point in how financial institutions leverage artificial intelligence. By harnessing Microsoft's Azure AI services—including Azure OpenAI Service (GPT-4 model), Azure AI Search, and Azure AI Document Intelligence—Franklin Templeton will be uniquely positioned to create a platform tailored to the specific needs of the financial industry.

"The future of how we work with clients to best meet their desired investment outcomes will require strong technological resources," said Jenny Johnson, President and CEO of Franklin Templeton. "The newly introduced platform we are developing is specifically tailored for investment management, leveraging the full range of Microsoft's AI resources, as a key driver of investment success."

The aim is to create an AI-driven system that delivers unparalleled personalization, enhanced risk management, and superior investment strategies. Franklin Templeton expects to provide its clients with highly tailored investment insights and recommendations, optimizing portfolios in response to rapidly shifting market conditions.

The Promise of Personalized Services

A crucial focal point of this partnership is offering a seamless, highly personalized experience for every client. The AI platform will analyze vast amounts of client data – including risk tolerance, financial goals, and investment preferences – to deliver customized advice and portfolio solutions.

"This partnership is not simply about harnessing AI; it's ultimately about human connection and better client experiences,"  said Satya Nadella, Chairman and CEO of Microsoft. "Microsoft's technology will allow Franklin Templeton to offer truly individualized financial solutions, helping people achieve their goals with the insight and agility that the market demands."

Unlocking Operational Efficiency

Beyond personalized client experiences, the new financial AI platform promises to redefine operational efficiency within Franklin Templeton. The platform is expected to automate routine tasks such as data analysis, report generation, and compliance monitoring. By streamlining these processes, Franklin Templeton's investment professionals will have more time for high-value activities like client consultation and strategic decision-making.

This enhanced efficiency, enabled by AI, is poised to boost productivity and reduce costs, ultimately resulting in a more focused and streamlined operational model for Franklin Templeton.

A Collaboration Focused on Innovation

The Franklin Templeton-Microsoft partnership marks a convergence of two industries committed to innovation and transformation. Franklin Templeton's deep understanding of financial markets complements Microsoft's leading expertise in cloud computing and artificial intelligence. The synergy is expected to catalyze further advancements in financial services.

Analysts predict this groundbreaking collaboration will inspire similar partnerships across the industry, paving the way toward broader AI adoption in a traditionally conservative sector.

Responsible AI Integration

Given the critical and sensitive nature of financial services, the partnership places a strong emphasis on responsible AI principles.  Both Franklin Templeton and Microsoft have pledged to prioritize transparency, explainability, and fairness in the development and deployment of AI solutions.  

The companies acknowledge that earning and maintaining trust is crucial to the success of their efforts. Clients will have clear insights into how their data is used to power AI-driven recommendations, with continuous communication around the processes.

A Vision for the Future of Finance

The Franklin Templeton-Microsoft alliance heralds a new era in financial services: one where AI empowers a deeply personalized client experience, optimizes complex processes, and ultimately drives better investment outcomes.

"We strongly believe the collaboration with Microsoft is essential to Franklin Templeton’s strategic commitment to leveraging technology to drive investment success for our clients while simplifying the complexity of wealth management," commented Johnson.

 

(MSFT), (NVDA)

Forget a moonshot — Microsoft (MSFT) and OpenAI are shooting for the stars with their latest collaboration on a supercomputer so massive, it makes your standard tech project look like child's play. 

Codenamed Stargate, this behemoth is poised to shake up the AI world with a projected investment ranging from $100 billion to $115 billion. The cosmos is the limit for this 2028 launch that isn't just a big deal — it's a mega deal.

Now, let's unpack this a bit. 

Microsoft, a titan of tech, alongside AI maverick OpenAI, plans to pour more than $100 billion into Stargate. Why? To cut the cord with Nvidia (NVDA) and perhaps start a new chapter in the tech saga that every big player in AI is itching to rewrite. 

And while the details are as tight as Fort Knox, we know this much: Stargate is the grand finale of a five-phase odyssey currently in its third act.

Imagine building something 100 times pricier than a massive data center — that's Stargate for you. This isn’t just a splurge; it’s an investment into what could redefine the boundaries of AI capabilities. 

With such a hefty tag, the project's budget is set to dwarf Microsoft’s capital spending in 2023 by more than three times.

But there’s more brewing at Microsoft’s labs. Even before Stargate’s grand debut, there’s a plan for a smaller sibling supercomputer earmarked for 2026, part of the phase four prep work. 

For the shrewd investors among us, this opens a golden door, particularly through Arm Holdings (ARM). Here’s why.

Think of Arm as the invisible giant of the tech world. They don't manufacture chips themselves, but their ingenious designs are the brains behind practically every smartphone on Earth and a whopping half of the world's CPUs. 

They're basically the Michaelangelo of chip design – sculpting the blueprints for the technology that powers our digital lives.

But here's the real kicker: Arm's business model is a cash-generating machine. They license their designs to major chip manufacturers like Qualcomm (QCOM) and Samsung, who then pay Arm royalties every time a chip based on their design is produced. It's an impressive cash cow, with Arm raking in a steady stream of income via royalties as their tech infiltrates more and more devices.

Now, here's where things get even more interesting for Arm. 

Microsoft's AI ambitions, fueled by this beast of a supercomputer, are a perfect match for Arm's expertise. Microsoft needs custom chips that can handle the immense demands of this project without draining the power grid. 

And who makes the world's most energy-efficient chips for super complex tasks? You guessed it – Arm.

This isn't just a hunch. 

Last November, Microsoft unveiled Azure Cobalt, its first AI-focused chip born from Arm's Neoverse CSS platform. This wasn't a one-off experiment – Cobalt proves Microsoft is shifting towards custom AI processors for better efficiency, a trend that likely continues with Stargate. 

And that means dumping traditional, power-hungry GPUs in favor of Arm's sleek designs.

But it's not just about the electricity bill. Microsoft saw a performance jump of up to 40% with Cobalt – showing that efficient doesn't mean weak. With the massive energy needs Stargate will have, Arm's chips are looking like a winning bet. 

Now, let's talk numbers — everyone's favorite part. 

Arm's earnings are expected to skyrocket, with projections suggesting a near 45% annual growth over the next five years. 

Starting from a fiscal 2024 earnings base of $1.19 per share, this growth could catapult earnings to about $7.63 per share. 

Do the math with the Nasdaq-100’s forward earnings multiple, and you might see Arm's stock price soaring to $208 in five years — a sweet 69% jump from today.

But let’s spice this up a bit. If Stargate fuels an even higher demand for Arm's tech, these figures could be just the conservative baseline. 

For investors looking to tap into the AI boom, grabbing a slice of Arm now might just be the smartest play before it rockets to new heights.

So, as we gear up for Stargate’s 2028 launch, keep your eyes on the stars — or in this case, the supercomputers and the chips that power them. 

Microsoft and OpenAI are on to something big, and it’s not just about tech. It’s about shaping the future of AI. And who wouldn’t want a front-row seat to that?

 

(NVDA), (AMZN), (IBM), (GOOGL), (AMGN), (NVO)

Turns out, the key to unlocking Alzheimer's or even finding the cure for cancer might actually be hiding in the same tech that powers Call of Duty. Today, let me tell you the story of how Nvidia (NVDA), the once video game-obsessed tech giant, is rewriting the rules in the healthcare sandbox. 

You’ve seen others take a swing at it — Amazon (AMZN) tried to cut costs, IBM (IBM) had a good run until Watson Health scrambled, and Alphabet’s (GOOGL) big dreams with Verily and Calico are still, well, just dreams. 

But Nvidia? They’re not playing by the old pharma rules. Their leap from gaming to drug discovery with AI is calculated, not lucky.

Remember the GPU? Back in 1999, these were the darlings of the gaming world. 

Fast forward a bit, and Nvidia’s launching CUDA in 2006 — a software language that turned these GPUs from gaming gadgets into something your local biotech's drooling over. 

Suddenly, you could use GPUs to tackle way more than exploding aliens.

But here's where it gets even crazier. Nvidia noticed those fancy new chips were getting a lot of use from scientists — not hardcore gamers. They worked like translators, turning the messy language of biology into something computers could understand. 

This opened up a whole new world for drug discovery. These folks were using them to figure out how tiny molecules and proteins dance around, unlocking secrets of diseases and potential cures.

Then, in 2010, Nvidia invited a big-shot biophysicist, Klaus Schulten, to one of their developer conferences.

Picture a room full of gamers suddenly getting a crash course in wriggly 3D molecules.  Schulten blew minds showing how these simulations could help crack how viruses like Swine Flu work. But there was a catch – the tech was crazy expensive and tough to use.

Nvidia’s big "aha!" moment came rolling in when Google’s DeepMind showed off AlphaFold in 2018, predicting how proteins fold more accurately than a seasoned origami master. 

Sure, Nvidia had been dipping their toes in biology for years –  molecular stuff, gene sequencing, fancy microscopes – the usual science nerd fare. But AlphaFold was next level. 

Imagine turning boring strings of amino acids into super-accurate 3D protein models.

So, Nvidia took Google’s breakthrough as a green light, and they weren't about to slow down. They punched the gas pedal with BioNeMo in 2022, which is basically a treasure chest of AI models that can whip up new drugs in the time it takes to brew your morning coffee.

BioNeMo, a software powerhouse packed with AI models, even AlphaFold itself, was used for simulating how molecules fit together like puzzle pieces, programs to create brand new molecules, and AI that can predict how tightly a drug binds to its target – this was a geek's dream come true. 

By then, over 100 drug companies signed up in a flash, and Nvidia knew it was just the beginning.

Leading this charge is Nvidia’s CEO, Jensen Huang, who might as well be the pitchman of the future — a future where biology is fully digitized. He’s the guy in the leather jacket at the science fair, convincing all the big pharma kids to try out his shiny tech toys. And it’s working. 

Now, Nvidia isn’t just selling chips anymore. They’re selling digitized biology that could be the golden ticket to curing, well, just about anything.

Still, not everyone’s buying the glossy brochure. Some seasoned biotech vets whisper about Nvidia simplifying the complex dance of biology just to push product. 

But then you’ve got folks like Sean McClain over at Absci (ABSI) saying if it weren’t for Nvidia, AI in healthcare would be stuck at the starting line. 

According to McClain and others who have embraced Nvidia’s technology, AI isn’t just a nice-to-have. It has become essential for future breakthroughs in healthcare.

So, which part of the biotech and healthcare industry is Nvidia focusing on the most these days? 

Well, Nvidia's betting the farm on AI transforming drug discovery from a sort of high-stakes casino game (where most bets are losers) into a more predictable endeavor. 

After all, Nvidia's still all about those super-powerful chips. They're building custom supercomputers for giants like Novo Nordisk (NVO) and Amgen (AMGN), tapping into their massive DNA databases. 

But here's the thing: it's their software that really puts that power to work in drug discovery. This is where Nvidia’s making serious moves. Basically, their engineers optimize and fine-tune those AI models into pharma-friendly tools. 

And Nvidia's latest trick? Microservices – ready-to-go AI models priced for serious buyers. 

So far, these things are priced at $4,500 per GPU per year or $1 per GPU per hour. That means if you need to use them for an hour, a year, or whatever – Nvidia's got you covered. 

Essentially, you get instant AI for drug discovery, no tech PhD required. Nvidia’s experts crunch the numbers and let pharma focus on what they do best.

Despite the eye rolls from the old guard calling this wildly optimistic, or "hopelessly naive," there’s tangible excitement about what AI can really do. 

Given everything Nvidia has accomplished to date, it’s clear that Huang’s not just making idle chit-chat. He’s laying down a vision of a world where designing drugs is as error-free as drafting up the next smartphone. 

High hopes? Sure. But with companies like Amgen seeing real results — boosting their clinical trial success rates and cutting down research timelines — there might just be something to all this talk.

And let’s face it, with Nvidia's muscle in AI, even if you're not buying what Huang’s selling, you've got to admit, the guy’s onto something. The healthcare industry might just be standing on the edge of a revolution, looking down at a future where AI is as common in a lab as a petri dish.