September 13, 2024
Buy This Backdoor AI Digital Assistant Giant
Dear Subscriber,
 |
| By Michael A. Robinson |
A few months ago, I alerted you to Apple’s (AAPL) plans to upgrade its popular digital assistant, Siri, to take advantage of AI.
But it is still behind the curve.
The rise of AI — specifically generative AI technology and applications like ChatGPT — should serve as a wakeup call for Apple.
And rest assured, the tech giant is wide awake …
If you have an iPhone, you’re undoubtedly familiar with Siri. Once you beckon her, she can complete tasks like reporting the weather, alerting you to traffic or answering simple questions.
But now Apple and its customers want more. They want Siri to be more conversational, understand context and answer questions more reasonably.
In other words, they want Siri to become smarter. And that’s exactly what Apple intends to do.
And as you will see in a moment, this tech is becoming a big driver in the $600 billion cloud computing market.
We can take advantage of it all by investing in a leader with deep digital assistance experience.
It’s a savvy firm whose stock has more than doubled the broad market’s returns.
And on Tuesday, the stock soared to a new high on an AI earnings beat …
Market to Double Every 3 Years
This intelligence boost is part of a new AI-related field that’s focused on personalizing virtual assistants. Granted, it’s a small market now — only about $2 billion.
But according to Grand View Research, this market will grow at a rate of more than 24% a year through 2030, meaning it will double every three years.
Siri and her Amazon.com (AMZN) rival Alexa may be the most popular examples of this new type of assistant. But there’s a rapidly growing number of other ones coming online.
In fact, the next wave of AI is enabling autonomous bots to complete nearly any task humans carry out on their devices. And they’re calling these bots AI “agents.”
Essentially, these agents will be able to figure out how to accomplish tasks on their own.
Just look at vacation travel. At online travel company Priceline, an AI named “Penny” will be playing travel agent very soon.
Of course, Penny can already do things like chat with customers and complete bookings. But eventually, she’ll be able to phone hotels to make special requests and even manage all your travel necessities, such as renting a car.
The Receptionist Is AI
Restaurants are getting involved as well. The next time you call a restaurant to book a reservation, you might be securing your table by chatting with an AI bot. That’s the hope of a restaurant-technology startup called Loman AI.
Loman offers an AI receptionist that’s already used in hundreds of restaurants nationwide, answering questions over the phone, making reservations and placing orders. It can talk to any customer or even another bot.
And let’s not forget investing. When human financial advisors make recommendations, they use a ton of outside information including stock prices and corporate financial numbers.
The thing is, AI can gather this information, too, and often do it faster and more accurately.
That’s why a UK-based startup is helping companies use AI bots to offer real-time financial guidance.
Right now, the bots’ main benefit is it speeds up investment research. But over time, these bots will learn their clients’ financial circumstances and objectives and use this knowledge to better buy and sell stocks or even offer personalized products.
Of course, if you’re looking for help with a different task, you can simply create your own chatbot.
An AI startup called Imbue is building a service that will let anyone design a bot for any task, large or small.
Clearly, AI assistants are in our future. And in many cases, the future is already here.
So, let’s look at a company that’s integral to creating these assistants and helping them become smarter and more capable.
AI Drives the Cloud
That company is Oracle (ORCL).
Oracle is a software giant based in Austin, Texas. Recently, it was viewed as the third-largest software company in the world in terms of revenue and market capitalization.
Oracle sells database software. And its core application is a suite of enterprise software products including ones for resource planning, customer relationship management and supply chain management. But this database pioneer has shifted its focus in recent years to the cloud …
Where one of its prime services has helped jettison the growth of technology and, of course, AI.
You see, in the transition from a legacy database provider to cloud services, Oracle has relied on its own cloud infrastructure, a service it calls — fittingly — Oracle Cloud Infrastructure (OCI).
OCI is central to the company’s plan to win AI-related business. That’s because AI startups require vast amounts of computing power to train and run algorithms.
Oracle recently said it signed the largest sales contracts in its history, driven by enormous demand for training AI large language models in the Oracle Cloud.
Microsoft And Google on Board
Notably, two of the deals involved the prominent tech giants Microsoft (MSFT) and Alphabet (GOOGL). The firm didn’t specify a dollar value for them but noted it signed 30 different customers for $12.5 billion in new AI business.
And then there’s Oracle’s role in the rise of digital assistants …
Remember those AI agents I mentioned earlier? Oracle has a major hand in helping create those.
One of its application services is Oracle Digital Assistant, which delivers a complete AI platform to create conversational experiences through text, chat and voice interfaces.
Oracle’s platform has a few key benefits. For example, we have patented deep learning algorithms that understand a user’s natural conversation. It can also derive intent and context, as well as build memory from user behaviors.
ORCL beat the broad market by 76% over the past five years. That’s despite the fact that Wall Street considered it a cloud laggard.
Not anymore.
On Tuesday the stock leapt on a classic earnings beat driven by the firm’s strong AI offerings that benefit from an alliance with Nvidia (NVDA).
It had already doubled the S&P 500’s year-to-date performance before this earnings announcement. Now, ORCL’s 52% advance roughly tripled that of the big-cap index.
It’s like I keep saying … these days, every business is a tech business. And as we’re seeing right before our eyes, that also means that they’re becoming AI companies, too.
With stocks like Oracle in your portfolio, you can profit from this unstoppable trend for years to come.
But I wouldn’t say it is the best way to profit from this trend. In fact, I’m about to share what is with my Weiss Technology Portfolio Members in a few hours.
Don’t worry, you can also hear about what I’m calling “The Next Nvidia” if you check out this presentation now.
Don’t delay, however. This is going to move fast.
Best,
Michael A. Robinson
Tidak ada komentar:
Posting Komentar