To The Moon

As we are in the last trading day of 2023, and we have seen how technology stocks have performed over the last 12 months. We have the earnings season and the keywords in these earnings announcement have this word “AI”.

As investors, I believe we should be doing our due diligence to understand how the technology trends would be like in 2024, on top of understanding some of our favorite Top tech stocks. How will the Top tech trends benefit them in 2024, or are they inline with what is going to happen?

In this article, I will be sharing on some Top Technology trends which I have gathered and which stocks I would think can benefit and what they might do to take advantage in 2024

Targeted Actions Focus To Mitigate AI risks

I guess the AI risks have been mentioned for quite some time, and the most recent case from New York Times on OpenAI and Microsoft have shown that there is more work to be done in this area.

Companies who are deploying AI will be more focus in taking targeted actions to mitigate the risks and the underlying nature of AI. We will see additional techniques such as ensuring the quality and fidelity of training data and keeping a human in the loop for both training (reinforcement learning based on human feedback) to be a common practice.

New patterns might be introduced to help companies developing LLMs (Large Language Model) to generate results from authoritative sources. This would be some ways how inference can be done by balancing the augmented intelligence that Generative AI provides.

We could also see an increase in robust governance policies, processes and tools including testing and validation for AI generated content, embedding monitoring throughout the entire system.

With this, I would think we can watch $C3.ai, Inc.(AI)$ because AI has a platform that is suitable for enterprise AI deployment and with C3 Generative AI which is a unified knowledge source that enables enterprise users with rapidly locating, retrieving, and acting on enterprise data and insights.

They would be in a better position to help to ensure quality and fidelity of training data, with this AI could assist enterprise in building robust governance policies, processes and tools including testing and validation for AI generated content, embedding monitoring throughout the entire system.

C3.ai Stock Performance Current

AI current ADX is showing a weak trend but +DI is above -DI suggesting a bullish upside. I personally would think that this might be a good time to plan for an entry.

I would expect once organization start to deploy AI widely, the need for a better platform should have AI drive its share price up.

More Energy Usage Expected As AI advancements Increases

As companies moved from selecting smaller AI models with fewer layers and filters specific to use cases, they are beginning to reduce energy consumption costs compared to general systems.

But as we are now moving into Generative AI which require deep learning models use vast amounts of data, this will increase the energy consumption. We might see a new fast-emerging trend where there will be a combination of capabilities of software-defined networking and an electric power system made up of direct-current micro grids, this can help organisations measure energy usage and emissions more accurately. It can also help organization to manage their inefficient and unused energy.

Sustainable energy plays a vital role in addressing climate change. I would think we can look at $Cisco(CSCO)$ and $NextEra(NEE)$ .

This is what I personally think in order to really reduce the energy consumption by AI running LLMs, it might be feasible to have renewables usage. Cisco has a energy networking solution that might help organization to better deploy their energy usage for correct purpose.

Cisco Stock Performance Current

As energy prices might go up next year and companies deploying AI would be concerned on whether they are using the most efficient energy strategy in their deployment.

I would think Cisco energy networking might be a feasible solution and this should move its ADX up into the developing trend higher and in a bullish upside.

More and Stronger Social Engineering Attacks Expected

As we are interconnected more on the internet space, we will be seeing more scam. These threat actors would be using more identity based attacks as the main weapon. You may ask why, because it has worked well and this has proved to be very successful for scammers and threat actors.

CrowdStrike’s latest Threat Hunting Report revealed that 80% of breaches occur through compromised identities. Scammers are no longer relying solely on compromised valid credentials.

These bad actors had brought their phishing and social engineering tradecraft to a new highs, or rather innovate to abuse all forms of identification and authorization, including weak credentials purchases from the underground. Social engineering is the word here, but it is utmost important for businesses to have a comprehensive education or tools for their employees to know about the common ways to recognise they are being deceived.

One company which I believe is good at this would be $CrowdStrike Holdings, Inc.(CRWD)$ , their software tools is easy to deploy and really would be something that is important especially when we could have AI performing impersonation, or abusing identity protection.

CrowdStrike Stock Performance Current

CrowdStrike share price is pretty high now, and ADX is in the very strong trend, with +DI above -DI in a wide margin, this might not be a good time to enter.

I would think there might be a pullback, so I would monitor and wait for a good time to plan for an entry.

Summary

Based on what I have gathered, I believe AI would take centre stage, more companies would be moving from theory planning to actual implementation. This would also mean that security is no longer a standalone functions.

We might see new threats emerging in 2024, so there is a possible convergence of IT and security teams, hence, tools like CrowdStrike would be something that could really help the organization.

Appreciate if you could share your thoughts in the comment section whether you think these Top Technology trend would create more opportunities for investors.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.