AI’s Biggest Winners
Alex Moschina|October 9, 2024
There’s been much ado about whether AI hype is overblown.
But as Reuters pointed out earlier this year…
Excluding Nvidia, whose shares have more than doubled, the S&P 500 is up about 10% in the first half of 2024, and without the so-called “Magnificent Seven” stocks the benchmark index’s gains are just over 6%, S&P Dow Jones Indices data showed.
That trend has only continued as 2024 rolls on.
At this point, Nvidia (NVDA) and the Mag 7 are practically synonymous with AI. And despite some pockets of turbulence during the past several months – or, as Shah would call them, buying opportunities – the overall trajectory for AI stocks has been… UP.
Just look at the one-year performance of Nvidia, Taiwan Semiconductor (TSM) and Broadcom (AVGO) – the three largest semiconductor manufacturers in the world.
It’s no stretch to say that an AI-centric future depends on the technology these companies create.
And their share appreciation over the past year reflects that fact.
In fact, Taiwan Semiconductor’s latest earnings report – released just yesterday – showed a whopping 39% jump in quarterly revenue.
The company raked in $23.6 billion last quarter, beating even Wall Street’s lofty expectations.
It’s more proof that the AI fervor is still heating up.
And as we mentioned last week, one area that’s suddenly seeing a resurgence as the result of AI is nuclear energy.
To help power its AI needs, Microsoft (MSFT) is planning to buy up all the output from the soon-to-be resurrected Three Mile Island nuclear plant in Middletown, Pennsylvania.
And Amazon (AMZN) has purchased the land next to another nuclear facility (also in Pennsylvania) with plans to open its own data center.
With energy demand expected to skyrocket over the coming years as technologies like AI and blockchain take off, nuclear could finally retake its place as a major global power source.
That’s one of the reasons why Shah devoted this week’s edition of Buy This, Not That to the topic.
Click the thumbnail below to give it a watch.
Alex Moschina
Alex Moschina is the associate publisher of Manward Press. A gifted writer, editor and financial researcher, Alex’s career in publishing began more than a decade ago when he worked at one of the world’s leading providers of academic research and reference materials. Alex first cut his teeth in the realm of investing when he joined the team at White Cap Research in 2010. There he was charged with covering emerging market trends and investment opportunities. A stint as senior managing editor and editorial director at the prestigious Oxford Club followed. A frequent speaker at conferences and events, Alex has led educational workshops across the U.S. and Canada.
