AI and the Stock Market (Part 2)

What Technology Enables AI?

In our last newsletter, we established that AI is going to transform the way businesses function and increase productivity significantly.

In order to achieve those efficiencies, there will be massive demand for AI servers, which are made possible by GPUs.

GPUs are 70x faster than CPUs, making them the best technology to enable AI servers.

We have already seen significant increases in demand for GPUs because of this, and this trend is expected to continue (and intensify).

Who Benefits from the Rise of GPUs?

Right now, Nvidia is the leader in providing GPUs, which is why their stock has performed the way it has in the last year.

As mentioned in our last newsletter, other companies such as LRCX AMD AMAT MU and ASML are worth looking at in this space as well.

What Other Sectors Should We Watch?

Analysts are projecting that the rise of AI will bring about a reacceleration in the cloud space.

With this in mind, some stocks that could benefit from leveraging AI include AMZN MSFT and GOOG among others.

For more information on AI and the stock market, watch the 10 minute clip below: