AI and the Stock Market (Part 1)

How can we benefit as traders from the rise of AI?

The AI Revolution

AI has been the single greatest theme that has driven the stock market in 2023. We have seen companies like Nvidia, Microsoft, and Google see massive rises in valuation as a result of leveraging AI.

Let’s take a step back and dive deeper into AI and its potential impact on business in the future.

We’re at the Start of the AI Wave

It’s important to understand that while it may feel like the AI trade has passed, we are just scratching the surface of AI technology.

The rate of adoption of AI technology is going to significantly outpace other major technological advancements such as the Internet and smartphones.

This is important because it tells us that while a few names in the stock market have risen significantly due to AI, there are many more companies that will be joining. It is our job to figure out which companies will benefit the most from AI in order to capitalize on this.

The Benefit of AI

AI is more than just a buzzword used in earnings calls to excite investors. It is projected to improve productivity for companies significantly.

The companies that are most effective in leveraging this technology (and selling the components needed to leverage it) will benefit the most.

What Stocks Should I Watch?

Right now, the companies that build out the equipment to enable AI usage are benefitting the most. Key names to look out for include LRCX AMD AMAT NVDA MU and ASML.

These names just happen to be breaking out right now.

Again, remember that the next wave of companies that will benefit massively from AI are yet to come. The traders that are able to quickly identify these names will be extremely successful.

For more information on AI, watch the 10 minute clip linked here: