The Age of AI: A Lucrative Investment Opportunity
Editor’s note: “Where to Focus Your Sights as the AI Boom Rages On” was previously published in October 2024. It has since been updated to include the most relevant information available.
Following the Money in Wall Street
In the world of finance, following the money is often the key to understanding where the true opportunities lie. Money tends to flow into sectors and stocks that hold promise for future growth and profitability.
Right now, the money is pouring into Artificial Intelligence (AI).
When we talk about money moving into AI, we are not referring to just any money – we are talking about the “smart” money. Companies like Microsoft, Amazon, Alphabet, and Meta are investing billions of dollars into AI research and development, funding projects that aim to push the boundaries of innovation in this field.
The Rise of AI Builders
Since the start of the AI Boom in late 2022, a specific type of AI stock has been dominating the market – the ‘AI Builders’. These companies are involved in creating the infrastructure needed to support the advancements in AI technology, including AI chips, data centers, and networking equipment.
During the initial phase of the AI Boom, stocks like Nvidia and Super Micro saw significant increases in their stock prices, showcasing the success of the AI Builders.
The Emergence of AI Appliers
As we move into the second phase of the AI Boom, a new wave of opportunities is arising in the form of ‘AI Appliers’. These companies focus on applying AI technology to create real-world value and drive economic growth.
Companies like Axon, Upstart, and Monday.com are already demonstrating the potential of AI applications in various industries, from law enforcement to finance and customer service.
Examples of AI Application Success
- Axon: Launching new AI products like Draft One for law enforcement.
- Upstart: Using AI to revolutionize the credit lending markets.
- Monday.com: Leveraging AI chatbots to enhance customer service efficiency.
Investing in AI Applier Stocks
As the AI Applier stocks continue to gain momentum, investors are witnessing impressive returns on their investments. Companies like AXON, MNDY, and UPST have seen significant stock price increases, indicating the potential for long-term growth and profitability in the AI sector.
Don’t Miss Out on the AI Boom
The shift towards AI Applier stocks presents a lucrative opportunity for investors looking to capitalize on the advancements in AI technology. By focusing on companies that are at the forefront of applying AI to real-world problems, investors can position themselves to benefit from the ongoing AI Boom.
Stay informed about the latest market trends and investment opportunities in the Age of AI.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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