Photo by Steve Johnson on Unsplash An IntroductionIn recent articles I had suggested that the AI sector was weakening and that was clearly evident in the results of April. The Global X Artificial Intelligence & Technology ETF (AIQ) of 91 constituents, which best reflects the AI sector as a whole, went DOWN 3.9% in April vs. going UP 2.0% in March. This article analyzes 7 AI categories as to their performances in April (as of April 26th). 7 AI Categories ComparedBelow is:
- Description: A computing revolution is beginning as a result of the introduction of neural processing units in the latest chip designs which will result in a coming decade of growth in PC upgrades and innovation. This portfolio tracks the stock performances of the companies that have introduced, or plan to introduce, AI-enabled PCs in 2024.
- 4 Constituents: DELL (+9.6%), LNVGY, MSI, and HPQ.
- Description: The price of AI chip stocks surged by 64% in 2023 and many analysts think there is an excellent chance that the boom will continue in 2024 and this portfolio tracks the stock performances of the major players in this category.
- 15 Constituents: TSM, AVGO, KLAC, MPWR, AMAT, MRVL, QCOM, ENTG, MU, NVDA, LRCX, ASML, MKSI, AMD (-12.8%), and ATEYY (-28.0%).
- Description: Given the anticipated 14% increase in spending on cyber security in 2024, this portfolio tracks the performance of the largest cyber security software stocks expected to realize sizable returns again in 2024.
- 10 Constituents: PANW, QLYS, VRNS, CRWD, FTNT, TENB, S, CHKP, ZS, and CYBR.
- Description: The stock prices of electronic design automation (EDA) software companies creating custom designed chips is set to take off given a projected 11% CAGR in the category between now and 2028. This portfolio tracks the stock price changes of 3 companies in this category.
- 3 Constituents: ANSS, SNPS which is acquiring ANSS, and CDNS.
- Description: Given the dramatic 37.3% CAGR forecast of the AI market between now and 2030, the 18.5% surge in the amount being spent on cloud computing SaaS and the major annual rental rate increases of data centers (18.5% in 2023) expected in the future, should greatly benefit the data center industry.
- 10 Constituents: INTU, SNOW, NOW, CRWD, ADBE, SHOP, WDAY, TEAM, CRM, and ADSK (-16.3%).
- Description: Quantum computing is still years away but it will change the world when it arrives and, as such, it is important to keep abreast of the major companies involved in its research and development and this portfolio does just that.
- 9 Constituents: MU, BIDU, HON, IONQ (-10.2%), IBM (-12.5%), AMD (-12.8%), RGTI (-17.6%), INTC (-27.8%), and (-29.4%).
- Description: AI-powered drug discovery holds massive potential to increase the accessibility of drugs and to treat presently incurable conditions and this portfolio highlights the most prominent clinical-stage biopharma tech companies using AI to power their research and development.
- 6 Constituents: SDGR (-11.2%), ABCL (-16.3%), ABSI (-17.3%), RXRX (-18.6%), RLAY (-23.3), and EXAI (-29.5%).
SummaryThe 57 constituents (54 when the 3 duplicates are removed) went DOWN 4.3%, on average, in April comparing favorably with the AIQ Global X Artificial Intelligence & Technology ETF (AIQ) of 91 constituents which went DOWN 3.9%.More By This Author:Semiconductor Stocks Tanked Last Week Led By Nvidia’s 13.6% Decline
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