After the sharp rise of AI concept stocks in the US stock market, it's time to switch to a new investment theme.
Missed out on Nvidia's 200% growth this year, and you may have missed the opportunity in artificial intelligence.
Artificial intelligence remains a business opportunity in the coming years, but for investors, the easy money-making opportunities have passed.
If you are smart enough - or lucky enough - to catch this bandwagon, then sell some of your shares. After all, the rebound is showing signs of losing momentum, or at least taking a break.
But if you missed out on NVIDIA's 200% surge this year, you may have missed the opportunity in artificial intelligence.
Because all AI concept stocks have seen significant gains.
AI concept stocks have taken turns to rise
For example, Amazon, Microsoft, and Alphabet, which have large-scale data centers, have purchased as many NVIDIA chips as possible to provide computing power for various AI applications.
Internet and software companies that use artificial intelligence, such as Adobe, ServiceNow (NOW), and Salesforce (CRM), have also seen a significant increase in stock prices.
In addition, Frelinghuysen pointed out that the power consumption of AI GPU servers is seven times that of typical data center servers.
However, Vertiv, which specializes in producing electrical equipment for data centers, has already risen by 180% this year. Eaton, the leader in power management products, has risen by 42% in 2023.
Even traditional companies can improve efficiency using AI technology. For example, United Parcel Service (UPS), Deere & Company (Deere), and UnitedHealth Group (UNH).
These AI applications are expected to bring about transformation one day, but it will take several years for them to take effect and become evident in terms of quantity.
Therefore, it is time to switch to a new topic.
