The pandemic may have brought storm, but it has also cultivated fertile ground for innovation.
The rise of AI, driven by generative AI tools such as ChatGPT and Stable Diffusion, has not only helped the tech sector recover, it has driven unprecedented growth. Looking to the future, one thing is clear. AI is more than just part of the tech industry.it is becoming of technology industry.
Markets are generally recovering after the pandemic. But the advent of AI has provided a special tailwind for tech stocks, especially hardware makers.
The most obvious recent example, of course, is NVIDIA, the industry-leading developer of graphics processing hardware and CUDA technology. Modern AI development is not possible without CUDA technology.
In just five months, NVIDIA experienced its biggest ever stock price rally. After enduring a 50% drop, it is now soaring 166%, due to a combination of political conflicts between the US and China, the 2022 chip crisis, and market stagnation caused by the COVID-19 pandemic. The company recovered from these losses in less than six months and shows no signs of slowing down in the near term.
AI hardware maker goes up in flames
But NVIDIA isn’t the only beneficiary of the AI explosion. Other competitors and affiliates have also benefited greatly from this new trend. Here are some of the award winners.
Advanced Micro Devices, Inc. (AMD)
AMD manufactures high-performance computing and graphics solutions utilized in AI applications. They develop specific GPUs and CPUs optimized for machine learning and AI workloads, making him the second most popular GPU choice for domestic users.
So far this year, the company’s stock has climbed 94% from $65 to its current price of $125. If the stock hits $145, it will make up for all of last year’s losses.
Taiwan Semiconductor Manufacturing (TSM)
TSM is the world’s largest independent (pure) semiconductor foundry. As a foundry, the company produces chips for various companies, many of which are involved in AI.
The company is up 39% year-to-date. Another 20% rally would make up for losses from 2022. Chip Crisis? where?
Micron Technology (MU)
Micron Technology is a world leader in the semiconductor industry. The company manufactures a wide range of memory and storage products that are critical components for AI and machine learning systems that require fast and efficient data processing.
MU shares are up 47% to date in 2023, with a further 27% potential before they hit record-high resistance.
3 AI-related software stocks to watch
Beyond hardware, software companies are also having a stellar year, especially with the explosion of generative AI, with ChatGPT driving the hype.
meta (META)
Formerly known as Facebook, Meta is one of the favorite companies among investors. By shifting its focus from the metaverse to AI, Mark Zuckerberg’s company is paying off. In addition to implementing solutions with traditional business models, the company also publishes significant open source contributions such as the large scale language model LLaMa.
A Large Language Model (LLM) is an AI model trained on large amounts of text data that can generate human-like responses to a wide variety of text prompts. (This simulates a conversation using natural language.) LLaMA is a very popular LLM among AI users and developers.
Meta has its best first half performance ever, with 2023 up 116% so far.
Microsoft (MSFT)
Bill Gates’ company is best known as the developer of the Windows and Xbox game consoles. But now he’s establishing himself as the “godfather” of LLM GPT-4 and the company OpenAI, the company that created his ChatGPT, the chatbot that brought AI to the media spotlight.
OpenAI is valued at $29 billion, with Microsoft alone investing $13 billion. The decision to incorporate GPT-4 into the Edge browser and Bing search engine, and to use Bing as the default search engine for ChatGPT, has sparked a surge in the tech giant’s stock. So far in 2023, Microsoft is up nearly 40% on him, offsetting losses from the previous year.
Alphabet Inc. (GOOGL)
Alphabet, Google’s parent company, is investing heavily in AI. They developed the Tensor Processing Unit (TPU), a custom-developed application-specific integrated circuit (ASIC) used to accelerate machine learning workloads. They are also the developers of TensorFlow, an open source AI library that provides cloud-based AI services. In the area of software, the company is even more active.
Bard’s successful launch with its improved PaLM2 established it as a direct competitor to ChatGPT. The release of his LLM model, tailored to customer needs, generated a positive response among investors (unlike when hallucinations began to appear when the company unveiled its first chatbot). . GOOGL stock is up 40% so far this year, with 20% more growth before it again challenges all-time high resistance.
