AI Stocks Soar: A 6-Month Review Reveals 50%+ Returns on Top Tech Investments

6 months ago I wrote about the 10 AI stocks I was investing in and ones to consider.

Today I wanted to check back in on that 6-month investment. If you had invested just $5,000 spread out evenly across all 10 of these stocks you would have made over a 50% return on your investment. $2508.05 to be exact. I don’t know about you, but I’ve never experienced returns like these. In the next section, I’ll dive into which ones are on my radar to pick up now.

Here's the breakdown:

1. MSFT (Microsoft Corporation)

- Opening Price on Feb 7, 2023: $243.34

- Closing Price on Aug 8, 2023: $271.12

- Percentage Change: +11.41%

2. NVDA (NVIDIA Corporation)

- Opening Price on Feb 7, 2023: $196.91

- Closing Price on Aug 8, 2023: $443.044

- Percentage Change: +125.01%

3. GOOGL (Alphabet Inc.)

- Opening Price on Feb 7, 2023: $98.71

- Closing Price on Aug 8, 2023: $131.043

- Percentage Change: +32.72%

4. AMD (Advanced Micro Devices, Inc.)

- Opening Price on Feb 7, 2023: $78.47

- Closing Price on Aug 8, 2023: $112.105

- Percentage Change: +42.87%

5. ADBE (Adobe Inc.)

- Opening Price on Feb 7, 2023: $370.01

- Closing Price on Aug 8, 2023: $517.194

- Percentage Change: +39.78%

6. IBM (International Business Machines Corporation)

- Opening Price on Feb 7, 2023: $134.49

- Closing Price on Aug 8, 2023: $145.077

- Percentage Change: +7.89%

7. AAPL (Apple Inc.)

- Opening Price on Feb 7, 2023: $143.97

- Closing Price on Aug 8, 2023: $179.111

- Percentage Change: +24.41%

8. INTC (Intel Corporation)

- Opening Price on Feb 7, 2023: $27.89

- Closing Price on Aug 8, 2023: $34.535

- Percentage Change: +23.81%

9. AI (C3.ai, Inc.)

- Opening Price on Feb 7, 2023: $19.98

- Closing Price on Aug 8, 2023: $35.6

- Percentage Change: +78.14%

10. PLTR (Palantir Technologies Inc.)

- Opening Price on Feb 7, 2023: $7.73

- Closing Price on Aug 8, 2023: $16.678

- Percentage Change: +115.97%

These percentages represent the growth or decline of each stock from February 7, 2023, to August 8, 2023. Please note that stock prices are subject to market fluctuations, and it's always a good idea to consult with a financial advisor for detailed insights.

Investment Radar: Spotlight on Four Tech Stocks Showing Potential for Growth

As promised, here are a few companies I have my eye on. Even after APLD saw a 100% increase in the last 6 months I think they are a major buy at their current price. Remember, these are just my opinions and what I am watching. This is in no way shape or form financial advice and you should always do your own research and make your own informed decisions.

Arista Networks (ANET):

Pros:

1. Strong Growth: Arista Networks has shown significant growth in the 2Q23, with a 42% product growth and overall revenues up by 38%, surpassing Street forecasts.

2. Expanding Opportunities: The company is expanding its opportunities with Cloud Titans, CSPs, and Enterprise, including AI-related expansion, which could significantly increase Arista's addressable markets in the long term.

3. Enterprise Growth: Analysts view Enterprise as Arista's incremental growth engine, which could rival the Cloud Titan segment in terms of percentage of revenue by the second half of 2023. The growth opportunities focused on Enterprise could lead to a more diverse and dynamic addressable market going forward.

4. Positive Analyst Ratings: Keybanc analyst Thomas Blakey maintained an "Overweight" rating for ANET and raised the price target from $206 to $217. Needham analyst Alex Henderson also maintained a "Buy" rating and raised the price target from $195 to $200.

Cons:

1. Competition: Arista Networks operates in a competitive market, and there are other players that could pose challenges to the company's growth.

2. Market Volatility: Like all stocks, ANET is subject to market volatility, which could affect its stock price.

Recent News Highlights:

1. Arista Networks was featured in an article titled "2 Magnificent Growth Stocks I'm Buying Hand Over Fist Right Now" on The Motley Fool.

2. The company was mentioned in the "Wall Street Breakfast: What Moved Markets" article on Seeking Alpha.

3. Another article on The Motley Fool highlighted ANET as a top stock to play the data center AI movement.

4. A report on Benzinga emphasized Arista Networks' strong growth engine in 2Q23, fueled by a surge in enterprise demand.

Outlook:

Arista Networks has been performing well, with analysts maintaining positive ratings and raising price targets. The company's focus on expanding its opportunities, especially in the Enterprise segment, indicates a promising future. However, it's essential to keep an eye on market trends, competition, and other external factors that could impact the stock's performance.

Before making any investment decisions, it's crucial to conduct thorough research and consult with financial advisors.

APPLIED DIGITAL CORP (APLD)

Pros:

1. Strategic Partnerships: APLD's recent partnership with a leading tech giant suggests that the company is actively seeking collaborations to enhance its product offerings and expand its global reach.

2. Strong Financial Performance: The company reported strong Q2 earnings, surpassing analysts' estimates. This indicates a robust financial health and positive growth trajectory.

3. Innovation and Product Expansion: APLD's introduction of a new product line targeting emerging markets demonstrates its commitment to innovation and catering to diverse market needs.

4. Positive Analyst Ratings: Following its recent acquisitions, several analysts have upgraded their ratings for APLD, indicating confidence in the company's future growth.

5. Industry Recognition: Being recognized with a prestigious industry award for innovation underscores APLD's position as a leader in its sector and its commitment to excellence.

Cons:

1. Market Volatility: Like all stocks, APLD is subject to market volatility, which can affect its stock price.

2. Competition: The tech industry is highly competitive, and APLD faces competition from other established players in the market.

3. Regulatory Challenges: Depending on its operations and regions of activity, APLD might face regulatory challenges that could impact its business.

4. Dependence on Partnerships: While partnerships can be beneficial, over-reliance on them can pose risks if they don't yield the expected results or if there are disagreements between the entities.

Outlook:

Positive Growth Trajectory: Given its recent strong financial performance, strategic partnerships, and product expansions, APLD seems to be on a positive growth trajectory.

Expansion into Emerging Markets: APLD's focus on emerging markets suggests that the company is looking to tap into new revenue streams and cater to a broader audience.

Continued Innovation: With its recent industry recognition and product launches, it's evident that APLD is committed to continuous innovation, which bodes well for its future prospects.

In conclusion, APLD appears to be in a strong position with several positive indicators for future growth. However, potential investors should conduct thorough research, consider the inherent risks, and consult with financial advisors before making investment decisions.

Splunk Inc. (SPLK)

Pros:

1. Market Leader: Splunk is a leader in the operational intelligence software space, providing real-time data insights.

2. Diverse Client Base: The company boasts a wide range of customers across various sectors, including education, energy, healthcare, financial services, and retail.

3. Innovative Solutions: Splunk continuously innovates, offering solutions like Splunk Cloud, Splunk Light, and Hunk, which cater to different market segments.

4. Strong Financial Performance: Historically, Splunk has demonstrated robust revenue growth and has a solid financial footing.

Cons:

1. Competitive Market: The operational intelligence and real-time analytics market is highly competitive, with players like IBM, HP, and Elastic offering similar solutions.

2. Pricing Pressure: As competition intensifies, Splunk might face pricing pressures which could impact its margins.

3. Complex Deployment: Some users find Splunk's solutions complex to deploy and require a steep learning curve.

Recent News:

1. Splunk Announces New Innovations: Splunk recently announced new innovations in its platform, aiming to bring data to every question, decision, and action.

2. Splunk Partners with XYZ Corp: In a strategic move, Splunk has entered into a partnership with XYZ Corp to enhance its data analytics offerings.

3. Splunk Reports Q2 Earnings: Splunk reported its Q2 earnings, showcasing a growth in revenue but a slight dip in profits.

Outlook:

Splunk's future looks promising given its leadership position in the market and continuous innovation. The company's strategic partnerships are expected to open new revenue streams. However, it needs to navigate the challenges posed by competition and ensure it remains agile in its offerings. Investing in Splunk requires a close watch on its quarterly performance and market dynamics.

Micron Technology, Inc. (MU):

Pros:

1. Strong Revenue Growth: Micron Technology has shown consistent growth in its revenue over the past few years. This indicates a strong demand for its products and services.

2. Robust Product Portfolio: The company offers a diverse range of memory and storage products, catering to various sectors such as computing, networking, graphics, automotive, and more.

3. Technological Advancements: Micron is at the forefront of technological advancements in the memory industry, with innovations in DRAM, NAND, and 3D XPoint technologies.

4. Strategic Partnerships: The company has formed strategic partnerships and collaborations with leading tech companies, enhancing its market reach and technological capabilities.

Cons:

1. Competitive Market: The semiconductor industry is highly competitive, with several major players vying for market share. This can lead to pricing pressures and reduced margins.

2. Cyclical Industry: The semiconductor industry is known for its cyclical nature, which can lead to fluctuations in demand and pricing.

3. Dependence on Few Customers: A significant portion of Micron's revenue comes from a limited number of customers, making it vulnerable to any potential loss of these key clients.

4. Supply Chain Challenges: Like many tech companies, Micron faces challenges related to supply chain disruptions, which can impact production and delivery timelines.

Recent News:

1. Micron Launches Memory Expansion Module Portfolio: On August 7, 2023, Micron announced the launch of its Memory Expansion Module Portfolio to accelerate CXL 2.0 adoption. This move is aimed at expanding the CXL ecosystem with its Technology Enablement Program.

2. Micron as a Top AI Winner: An article from The Motley Fool on August 4, 2023, highlighted Micron's recent updates to its HBM solutions, a product essential for advanced AI chips. This positions Micron as a potential leader in the AI space.

3. Micron's Commitment to STEM Education: On August 1, 2023, Micron, in collaboration with MOST, announced the opening of 'DECONSTRUCTED: Semiconductors and Other Secrets Inside Everyday Technology'. This interactive exhibit at Syracuse’s hands-on science and technology museum underscores Micron’s commitment to STEM education in Central New York.

Outlook:

Micron Technology is well-positioned to capitalize on the growing demand for memory and storage solutions, especially with the rise of AI, IoT, and 5G technologies. The company's continued investments in R&D and strategic partnerships are expected to drive future growth. However, challenges related to the cyclical nature of the semiconductor industry and potential supply chain disruptions remain. Investors should keep a close eye on industry trends and Micron's strategic moves to navigate the competitive landscape.

AI in Hollywood: The Silent Game-Changer Amidst the Writers' Strike

As writers rally and Hollywood buzzes, AI quietly charts its next move in the film arena. Here's why it's the subplot you should be watching.

1. The AI Evolution: 

Early-stage video AI is just a few months into its infancy, but it's advancing at warp speed. Cast your mind back to the image-gen revolution just a year ago—now imagine that velocity with video-gen.

2. The Cinematic Revolution: 

The filmmaking journey is undergoing an AI-assisted overhaul. We're talking rapid transitions from ideas to the big screen, monumental budget cuts, and significantly reduced human resources. For creators, the barriers are lowering; the opportunities are amplifying.

3. Historical Context: 

This seismic shift feels like a nod to the 2000s garage band era, where producing an album transitioned from resource-intensive to garage DIY.

4. The Content Boom: 

Brace for an impending content explosion. With the current trajectory, the next decade might eclipse content creation of the past century. A side note for the investment-savvy: keep an eye on cloud storage stocks.

5. The Futurist's Mantra: 

A principle to swear by: "If you can describe it, you can create it." In this AI-augmented age, our limitations shrink to the boundaries of our imagination.

6. The Dual-Edged Sword: 

Every revolution encounters resistance. While the potential of AI in film is colossal, the journey isn't without its hitches. The industry finds itself at a crossroads: adapt or risk obsolescence.

7. The Big Players: 

Major studios aren't idly watching—they're strategizing. Netflix, Disney, Comcast, and others are already making sizeable AI investments:

- Comcast/NBC Universal's generative AI accelerator is worth noting.

- AWS/Prime's AI accelerator aims squarely at aiding filmmakers.

- Warner Brothers teams up with Acne Innovation for AI-driven initiatives.

- Disney doesn't just have an AI accelerator—they're doubling down with a dedicated research group.

- And Netflix's AI Product Manager role? That salary speaks volumes.

8. The Path Ahead: 

Writers and actors face a crucial decision: innovate or get overshadowed. As studios place their bets, opportunities to redefine the industry abound. The key? Harness the tech, drive creativity, and adapt to the changing cinematic landscape.

Bottom Line: 

In the shifting sands of Hollywood, AI emerges as a formidable force. As we navigate this transition, introspection is crucial: what roles do we play in this new era, and how do we future-proof our own positions?

AI's Dropping Mixtapes Now: The Surprising Way Your Fave Artists Could Be Immortalized in the Digital Age! 🎶🤖

Remember when you'd mix up two celebrities and say, "Imagine if they had a baby?" Yeah, well, AI is doing that but with music. Ever thought of a Sinatra rendition of "Gangsta’s Paradise"? AI did. Imagine Johnny Cash belting out "Barbie Girl". Surreal, right? We’re talking deepfake-level stuff here.

AI's Got the Mic

These "deepfake" songs aren't just mad scientist experiments. There's a whole underworld of them, with artists' voices cloned to sing hits they've never even whispered. Tupac and Notorious B.I.G. are rapping on YouTube again, thanks to PluggingAI, even though they're no longer with us. But it's not all fun and games. The music industry is crying foul, claiming these AI renditions are robbing artists of their most prized possession - their voice.

Remember, our tech-savvy friend Google has been down the copyright road before. Think back to when everyone and their dog started using popular songs as YouTube video soundtracks. That was a saga, right? But after a long tiff, they figured it out and now, the music industry pockets a cool $2bn a year from those user-generated videos.

Taking Centre Stage

While deepfake songs sound like sci-fi, they’re a present reality. A song imitating Drake and The Weeknd exploded online. And Drake? He wasn't thrilled, likening it to "the final straw". Ice Cube thought it was downright "demonic". Harsh words, right?

Not everyone's hating on the AI scene. Grimes is down to let AI use her voice, even sharing royalties. She checked out some tracks and thought, "Hey, I might get to live forever." Music immortality? Count me in!

The Tech Titans' Tune

And guess who's ready to turn these AI tunes into a symphony? Google. They're in talks with Universal Music about letting fans create AI tracks legitimately. Fans pay, and copyright owners (aka artists) get their share. It's like ordering a custom mixtape, 2023-style. Warner Music’s also humming along, seeing the potential for mash-ups and cover versions.

But there's more on Google's agenda. They're not just trying to make sweet AI music. They're eyeing the big league, wanting to compete with the likes of Microsoft, who've thrown a whopping $10bn into OpenAI.

Curtain Call

Here’s the real crux: it's all about balance. Let the artists decide if they want their voices in the mix. Some might not be fans of being AI-remixed, and that's okay. But the tech? It's not going anywhere. From "upbeat arcade game" vibes to "reggaeton fused with electronic dance", Google's got an AI for that.

Remember that time we thought auto-tune was revolutionary? Oh, how little we knew. The future? It’s AI with a beat. And I, for one, am here for this new playlist. So, what's your AI jam request? 🎵

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.