AI Stocks: Tech Giants, Cloud Titans Face 'Show Me' Moment. Nvidia Earnings Due.

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AI Stocks: Tech Giants, Cloud Titans Face 'Show Me' Moment. Nvidia Earnings Due.

Blockhead11-15 22:40

the artificial intelligence stock market boom still wired or tired? Top AI stocks such as Microsoft (MSFT) and Nvidia (NVDA) face high expectations. For many companies — such as Google parent Alphabet...

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For many companies — such as Google parent Alphabet...</p>\n\n<a href=\"https://www.investors.com/news/technology/artificial-intelligence-stocks-branch-4/\">Source Link</a>\n\n</div>\n","source":"investor_business_daily_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AI Stocks: Tech Giants, Cloud Titans Face 'Show Me' Moment. Nvidia Earnings Due.</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAI Stocks: Tech Giants, Cloud Titans Face 'Show Me' Moment. Nvidia Earnings Due.\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-15 22:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investors.com/news/technology/artificial-intelligence-stocks-branch-4/><strong>Blockhead</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>the artificial intelligence stock market boom still wired or tired? Top AI stocks such as Microsoft (MSFT) and Nvidia (NVDA) face high expectations. For many companies — such as Google parent Alphabet...</p>\n\n<a href=\"https://www.investors.com/news/technology/artificial-intelligence-stocks-branch-4/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SJY.SI","symbol_name":"MEGROUP LTD.","start_time":0,"source_url":"https://www.investors.com/news/technology/artificial-intelligence-stocks-branch-4/","article_id":"2483303268","we_media_id":null,"thumbnails":["https://www.investors.com/wp-content/uploads/2017/12/Stock-ArtifIntel-01-shutt-150x150.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2483303268","pubTimestamp":1731681648,"sourceInfo":{"source_id":"investor_business_daily_highlight","name":"Investor’s Business Daily"},"weMediaInfo":null,"summary":"Key questions for AI stocks include Nvidia's outlook for Blackwell AI chips in 2025. Will Apple Intelligence spur big iPhone 16 upgrade cycle?","collect":0,"end_time":0,"defaultTopTitle":"investors.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"SJY.SI":"MEGROUP LTD.","NVDA":"英伟达"},"translate_title":"人工智能股票：科技巨头、云巨头面临“向我展示”时刻。英伟达收益到期。","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NVDA":1,"SJY.SI":1},"content_text":"the artificial intelligence stock market boom still wired or tired? Top AI stocks such as Microsoft (MSFT) and Nvidia (NVDA) face high expectations. For many companies — such as Google parent Alphabet (GOOGL), Amazon.com (AMZN) and Facebook parent Meta Platforms (META) — the rise of generative AI poses both risk and opportunity.\n\n\n\n↑\nX\n\n\n\n\nAI Stocks Are Getting Tired. Is The Dot-Com Bubble A Blueprint Or A Cautionary Tale For Investors?\n\n\nSee All Videos\n\n\n\n\nNOW PLAYING\nAI Stocks Are Getting Tired. Is The Dot-Com Bubble A Blueprint Or A Cautionary Tale For Investors?\n\n\n\n\nAmid the emergence of generative AI — which can generate text, images, and video — it's a good time to be cautious amid the hype, especially given negative developments at Super Micro Computer (SMCI).\nMany companies suddenly tout AI product roadmaps. In general, look for AI stocks that use artificial intelligence to improve products or gain a strategic edge.\nNvidia Stock: Earnings Due\nChipmaker Nvidia has been a bellwether for AI stocks. Third quarter earnings for Nvidia stock are due Nov. 20. Nvidia stock has climbed  jumped 192% in 2024 after surging 239% last year.\nFurther, Nvidia stock remains on the IBD Leaderboard. For Nvidia, ramping up production of next-generation Blackwell AI chips in 2025 will be key.\nIn Q3, analysts are modeling earnings of 75 cents a share, up 88% year over year, on sales of $33.06 billion, up 82%. For the fiscal fourth-quarter, Wall Street currently expects Nvidia to earn 82 cents a share, up 58%, on sales of $36.94 billion, up 67%.\n\"While revenue upside in the quarter itself may not be as significant in magnitude as prior quarters, we expect this to be more than made up for in the company's January-quarter guidance, with Nvidia indicating Blackwell could contribute 'several billions' of revenues in that quarter,\" said Ross Seymore, a Deutsche Bank analyst in a report.\nWhy Microsoft Lags Meta Stock\nMeanwhile, Microsoft is the biggest investor in generative AI leader OpenAI, having spent some $13 billion on the startup. But Microsoft stock has gained only 12% in 2024 vs. the S&P 500's nearly 24% gain.\nCapacity constraints in Microsoft's data centers are limiting its ability to meet demand, resulting in a slower growth forecast for its Azure cloud-computing business.\nHowever, Meta stock has gained 63% in 2024. Meta Chief Executive Mark Zuckerberg has outlined heavy investment in AI next year as well as big losses at AI division Reality Labs. But, Meta's AI strategy is gaining traction by improving existing products and in new product offerings.\nOn Facebook and Instagram, AI-driven feed and video recommendations boost engagement. Also, the Meta AI chatbot answers questions from any of the 3.2 billion users of Meta's products each day. Meta's Business AI is used to create advertising content. And its AI Studio creates AI characters. Internally, Meta uses AI in content moderation.\nKey Issues For Top AI Stocks\nAlso, capital spending has boomed at cloud computing giants Amazon, Microsoft and Google. Tech giants are spending heavily on data center infrastructure, such as AI chips and servers, as well as research and development.\nAmid increased capital spending by cloud computing giants, the big question is how much incremental AI-related revenue they're getting. The cloud giants in the September quarter notched revenue growth for the fourth straight quarter, indicating that AI investments may be paying off.\nAlso, Apple (AAPL) has been one of the top AI stocks to watch. Apple stock has gained nearly 18% in 2024. The big question is whether Apple Intelligence features in iPhone 16 models will spur a big upgrade cycle.\nAI Stocks Now A 'Show Me' Story\nThe best AI stocks to buy span chipmakers, software companies, cloud computing service providers and technology giants.\nWhat's clear is that AI stocks are under more scrutiny.\n\"We expect AI to transition from a 'tell me' to a 'show me' story, with any disconnect between investments and revenue generation to come under increased scrutiny,\" said a Bank of America report. \"\nMeanwhile, Nvidia and Arista Networks (ANET) are squaring off in the AI Ethernet networking market. Also, Arista stock has gained 63% in 2024.\nArista stock has dropped off the IBD 50 roster of growth stocks.\nSoftware Makers Pivot to AI Agents\nSo far, the biggest demand for AI chips has come from cloud computing giants and internet companies.\nBroadcom (AVGO), Qualcomm, ARM Holdings (ARM), and Marvell Technologies (MRVL) are other AI chipmakers to watch. Broadcom and Marvell make custom AI chips for cloud computing giants.\nIn general, semiconductor plays have out-performed software companies as the best AI stocks.\nMany software companies, meanwhile, have yet to monetize AI products. One big issue for software companies is how fast customers ramp up pilot programs to commercial deployment.\nHaving struggled to generate new revenue from \"copilots,\" software companies are now turning to AI agents.\nMeanwhile, data analytics software maker Palantir (PLTR) has bucked the trend that chipmakers are the best AI stocks. PLTR stock has gained 258% this year. Palantir stock jumped on its third-quarter earnings report. Palantir stock ranks No. 11 in the IBD 50.\nAlso, for most big application software companies, how to charge for AI-related products has been an issue.\nFurther, most enterprise software makers will not monetize generative AI, or \"conversational AI,\"  in a material way until 2025, some analysts say. Many U.S. companies are pursuing custom AI software development projects, which will take longer to ramp up commercially.\nAlso, AI technology uses computer algorithms. The software programs aim to mimic the human ability to learn, interpret patterns and make predictions.\nUntil recently, machine learning was largely limited to models that processed data to make predictions. The AI models focused on pattern recognition from existing data. Corporate spending on AI projects was modest as companies mulled return on investment.\nAI Stocks To Watch By Industry Group\n\n\n\n\nCompany\nSymbol\nComp Rating\nIndustry name\nAI angle\n\n\n\n\nNvidia\n (NVDA)\n99\nElec-Semiconductor Fabless\nCloud computing giants buying more chips to train AI models or run AI workloads. Big lead over rival Advanced Micro Devices (AMD).\n\n\nCrowdStrike\n (CRWD)\n94\nComputer Software-Security\nAI chatbots expected to automate more functions in security-operations centers and reduce the time to detect computer hacking.\n\n\nArista Networks\n (ANET)\n95\nComputer-Networking\nSells computer network switches that speed up communications among racks of computer servers packed into \"hyperscale\" data centers. With AI growth, internet data centers will need more network bandwidth.\n\n\nMicrosoft\n (MSFT)\n72\nComputer Software-Desktop\nBiggest investor in generative AI startup Open AI, whose ChatGPT users require Azure cloud services. Microsoft's business AI assistant, Office 365 Copilot, will have general availability on Nov. 1.\n\n\nSalesforce\n (CRM)\n96\nComputer Software-Enterprise\nIntegrating conversational AI assistants within the user interfaces of all Salesforce apps. Expected to use a mix of subscription and consumption-based pricing.\n\n\nAmazon.com\n (AMZN)\n96\nRetail-Internet\nAlexa smart assistant lags in chatbot technology. Cloud computing unit working with OpenAI rivals Anthropic, Hugging Face and Falcon 40B.\n\n\n\n\nNew generative AI models process \"prompts,\" such as internet search queries, that describe what a user wants to get. Generative AI technologies create text, images, video and computer programming code on their own.\nCompanies will aim to boost productivity by developing customized AI for specific industries. Proprietary company data will be used to train AI models.\nAI systems require massive computing power to find patterns and make inferences from large quantities of data. So the race is on to build AI chips for data centers, self-driving cars, robotics, smartphones, drones and other devices.\nFor chipmakers, analysts expect a market for \"edge AI\" — on-device processing of AI apps to emerge.\nWhile \"training\" AI models is now the biggest market for chipmakers like Nvidia, the market will shift to \"inferencing,\" or running AI applications, in the long run.\nWill AI Startups Challenge Tech Giants\nWhat's more, one key question for investors is whether tech industry incumbents will be the big generative AI winners. Or, will a new wave of AI startups eventually dominate? OpenAI has told employees its now on an annual revenue run-rate of $3.4 billion, up from $2 billion in January.\nOpenAI has raised $6.6 billion in new funding, valuing the startup at $157 billion, up from $86 billion early this year. The new round was led by venture-capital firm Thrive Capital. Microsoft again invested. New investors include SoftBank and Nvidia but not Apple as rumored.\nOpenAI plans to convert from a nonprofit organization to a for-profit company as top researchers continue to leave.\nFurther, OpenAI has released a new large language training model capable of enhanced reasoning skills. Code-named \"Strawberry,\" it's officially called OpenAI o1.\nLarge language models provide the building blocks to develop applications. Further, LLMs help AI systems understand the way that humans write and speak. Also, LLMs require training data for specific tasks. Companies with access to troves of data hold an edge.\nOpenAI is part of a wave of LLM startups that includes AI21 Labs, Anthropic and Cohere. Anthropic introduced Claude 3, the newest version of its chatbot, and claimed its performance is better than OpenAI's GPT-4.\nHowever, OpenAI's dominance faces a challenge from open-source LLMs.  Musk's xAI announced it will open source its Grok LLM, and released the source code for public use.\nFollow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.\nYOU MAY ALSO LIKE:\nWant To Trade Options? Here Are The Basics To Get You Started\nIBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis Today\nLearn How To Time The Market With IBD's ETF Market Strategy\nMonitor IBD's \"Breaking Out Today\" List For Companies Hitting New Buy Points\nIBD Live: A New Tool For Daily Stock Market Analysis","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"hasMoreComments":false,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}