The AI Boom: A Profitable Opportunity in the Age of AI
Editor’s note: “Where to Focus Your Sights as the AI Boom Rages On” was previously published in November 2024. It has since been updated to include the most relevant information available.
The Power of Following the Money
In the iconic 1990 film “The Two Jakes,” Jack Nicholson delivers a memorable line that resonates with investors:
You can follow the action, which gets you good pictures. You can follow your instincts, which will probably get you in trouble. Or, you can follow the money, which, nine times out of ten, will get you closer to the truth.
Following the money is a strategy based on the belief that where capital flows, opportunities abound. This is especially true on Wall Street, where investments are a reflection of true beliefs and future potential.
The AI Investment Landscape
Right now, the smart money is pouring into the Artificial Intelligence sector. Major players like Microsoft, Amazon, Alphabet, and Meta are investing billions in AI research and development, signaling a significant shift towards AI-driven technologies.
- Microsoft has allocated $10 billion to OpenAI for language model creation.
- Amazon has invested $4 billion in Anthropic for generative AI technologies.
- Alphabet has put $5 billion into Waymo for self-driving technology.
- Meta plans to spend up to $40 billion on AI research and development this year.
While AI Builders dominated the first phase of the AI Boom by focusing on infrastructure development, we are now entering a new phase where AI Appliers will take center stage.
Phase 2 of the AI Boom: The Rise of AI Appliers
The next phase of the AI Boom is all about applying AI to create tangible value in various industries. Companies like Axon, Upstart, and Monday.com are leading the way with innovative AI applications:
- Axon’s Draft One AI product automates police report writing, generating significant demand and revenue.
- Upstart is leveraging AI to revolutionize credit lending markets, driving profit margin expansion.
- Monday.com’s genAI chatbot is resolving customer service tickets efficiently, leading to revenue growth and cost savings.
Winning AI Stocks: The Future of Wall Street
As companies continue to deploy AI applications for real-world value creation, AI Applier stocks are poised to outperform in the market:
- AXON has seen a 150% increase in stock value this year.
- MNDY stock rallied 50% in the past six months, with strong post-earnings performance.
- UPST has surged 60% in the last three months alone.
These AI Applier stocks are gaining momentum and are likely to lead the market in the foreseeable future, presenting a lucrative opportunity for investors.
Don’t Miss Out on the AI Boom
Investors should pay close attention to the evolving landscape of AI investments as the sector continues to grow. The shift towards AI Appliers presents a unique opportunity to profit in the Age of AI.
Stay informed about the market’s biggest winners by following our latest market analysis.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
P.S. Stay updated on Luke’s market insights by subscribing to our Daily Notes on your Innovation Investor or Early Stage Investor subscriber site.
Analysis: Understanding the AI Boom
The AI Boom represents a significant shift in the investment landscape, with AI Appliers emerging as the new leaders in the market. By focusing on companies that apply AI to create real-world value, investors can capitalize on the potential for growth and innovation in the Age of AI.
Companies like Axon, Upstart, and Monday.com are paving the way for AI applications that drive revenue growth, cost savings, and market leadership. By investing in these AI Applier stocks, investors can position themselves to benefit from the ongoing AI Boom and the transformative power of artificial intelligence.
As the AI sector continues to evolve and expand, staying informed and proactive in identifying promising AI Applier stocks is essential for maximizing investment opportunities and securing financial success in the ever-changing world of finance.