November 30, 2024
It's Time to Look Beyond AI
Dear Subscriber,
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| By Jim Nelson |
If you had to guess (don’t peek below just yet) which sectors are leading the S&P 500 higher this year, what would they be?
You might say tech stocks. Especially those involved in the AI boom.
Sure, Nvidia (NVDA) is still up 176% despite a poor few days of late.
But the sector as a whole lags several others.
In fact, its year-to-date performance pales in comparison to financials, communication services, utilities, industrials and even consumer discretionary stocks.
How is it possible that the group that grabs a big chunk of each day’s headlines can lag sectors with old, boring companies like General Motors (GM) and Constellation Energy (CEG)?
Because AI has officially expanded beyond the tech sector.
Our resident tech expert, Michael A. Robinson, says it best:
“Every company is now an AI company.”
Even those two boring examples above.
GM is using AI to advance its GPS systems, safety detection and even its OnStar Virtual Assistant.
Constellation, meanwhile, is set to use nuclear power plants — both those still in operation and others which have been offline for years — to fuel the power demands of AI data centers.
So, yes, Nvidia is having another banner year. And 2025 looks bright too … not just for Nvidia, but for a mysterious investment that could be the savior of the tech industry.
Specifically, two companies that have nothing to do with AI. At least, not on the surface.
Even “First Buddy” Elon Musk says these investments are critical when it comes to solving the No. 1 problem facing AI.
Find out what that is, and why these two companies are desperately needed to make a difference, by clicking here now.
Of course, Michael isn’t the only one interested in these trends.
Your ratings guru — Gavin Magor — dug into the Magnificent 7. And he found they don’t all deserve the attention they are getting.
Find out which ones passed his test here.
If you’ve been reading for a while, you might not be surprised that Nilus agrees.
While he doesn’t directly mention AI, he does have this to say:
“There are lots of exciting trends to latch onto. Some are even profitable at the moment.
“But do the valuations make sense?
“What must happen for you to continue getting adequate returns on your capital?
“And can you rely on these investments if the economic tide turns?
“My point is simple …
“Nobody needs to surf in a wave pool. But everyone has to eat … no matter what.”
Don’t worry. That last line will make sense when you read this.
Again, if you want to join Michael in his ongoing hunt for what’s “Beyond AI,” I urge you to click here today.
That’s all for this week.
Have a great rest of your holiday weekend!
Jim Nelson
Managing Editor, Weiss Ratings Daily
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