Recently, we have released the most important list of AI stock of 35 Coatue. In this article, we will look at where Qualcomm Incorporated (nasdaq) opposes the most important AI stock of CoAtue.
Artificial Intelligence (AI) promoted major rally in technology sector and boosted major market indexes. In the past year, S & P 500, which was strongly influenced by Tech giants, has increased by nearly 22 %, but the high -tech NASDAQ composite has increased more than 26 %. Initially, market analysts predicted an increase in interest in growth options in 2024 by relieving inflation and potential interest rates. However, AI undertook this expected interest, amplifying it into a wave of optimism throughout the economy. High -tech shares were major beneficiaries, but the influence of AI is expanding in the industry, such as manufacturing, supply chain, transport, entertainment, and retail.
Investing in AI is increasing rapidly in various fields. Recent GOLDMAN SACHS reports estimate that the global business will invest nearly $ 1 trillion in AI infrastructure in the next few years. Venture capital (VC) investment to AI startups is also increasing. In the first half of 2024, VC companies made about 200 AI -related transactions and injected nearly $ 22 billion into sector. The average AI startup financing round has exceeded $ 100 million, and its rating is over $ 1 billion. In contrast, non -AI emerging companies usually receive about $ 20 million funds and have been evaluated for nearly $ 200 million, indicating the features of AI investors.
Companies, which are early hires of AI, have experienced a great deal of profits, especially graphic processing units (GPUs), AI chips, and generated AI technology. The median return of S & P 500 AI -related companies is 20 % compared to only 2 % of non -AI shares. AI companies are also in charge of 90 % of the total returns of Nasdaq Composite Index. These profits are expected to promote the growth of revenue and contribute to a wider economic expansion. According to Joseph Briggs, a senior global economist of GOLDMAN Sachs, AI is expected to automate 25 % of all tasks over the next 10 years, increasing US productivity by 9 % and growing GDP 6 %. It is increasing.
According to GOLDMAN SACHS, access 10 best AI data center stocks and 10 Buzzing AI stocks to see the details of these developments.
COATUE Management’s Philippe Laffont claims that AI may be the beginning of a new “super cycle” in the high -tech industry. The previous cycle included the rise of personal computer in the 1980s, the 1990s networking, wired Internet in the 2000s, and mobile Internet in the 2010s, which led to the cloud era. However, Kash Rangan and Eric Sheridan, a software and Internet expert, emphasize important differences. This time, companies have linked AI investment directly to profits, and provide financial safety networks lacking in past cycles.
The story will continue
Since the launch of Chatgpt by Openai in early 2023, the focus of the industry has shifted from software to AI hardware and infrastructure. AI infrastructure companies have collectively referred to a market capitalization of nearly $ 6 trillion since the first quarter of 2023. Before the large AI auto motion becomes common, Economist Daron Acemoglu estimates that it will take more than 10 years. , Internet and industry. Interestingly, these sector companies that support AI development have posted returns comparable to the proportional profit margin of AI companies.
The growing demand for AI -led data centers is also promoting investment in energy and utility sector. Goldman Sachs analysts Curly Dabenport and Alberto Gandolf hope that the AI adoption will be an increase in power demand for decades. However, whether AI growth is consistent with investment in energy infrastructure remains uncertain due to restrictions on restrictions on regulations and restrictions on supply chains in the public -interest business division. Even if the necessary investment is realized, their complete profits may take years to reach AI companies.
Access 30 most important AI shares and read details of these developments according to the BlackRock and Beyond the Tech Giants: 35 Non-Tech AI opportunity.
Some investors remain cautious, fearing the AI bubble similar to the Dot-Com crash in the early 2000s. However, the current data suggests that AI rating is much more evident than the Dot-Com evaluation. With the height of the dot-com bubble, the software company traded 132 times the price and revenue (P/E) ratio compared to the average 5-year in 1999. In contrast, in 2023, the largest AI was about 39 times the P/E ratio of stocks, and the average five -year average was 40 times. These figures suggest that AI’s reputation is not excessively expanding, strengthening investors’ trust in AI’s long -term possibilities.
AI companies are becoming more and more targeted for the largest software and internet companies today. In the past decade, high -tech giants have expanded their business to an unprecedented level, combining billions of users, hundreds of millions of income and hundreds of billion net income. Today, a small number of companies account for 80 % of the Fortune 500 rating. These companies dominate industries such as smartphones, e -commerce, cloud computing, and software services (SaaS). A confusing posture. As a result, these companies are actively incorporating AI into business strategies to maintain market leadership.
Some investors are worried that AI companies can cover software companies and affect long -term evaluation. The price anti -sale (P/S) ratio of software stock, which has reached its peak in 2021, is currently the lowest in history. Slow profits also contribute to the negative emotions of the sector. According to COTUE’s survey, only 1 % of SaaS companies have declined with 30 % to 30 % of SaaS Boom over the next 12 months. However, if the interaction of human machines shifts to natural language processing and generated AI, software companies that integrate AI as a platform may prosper.
As the inflation cools, the hiking of the rate becomes easier, and as the soft economic landing prospects are improved, the AI macroeconomic prospects continue to be powerful. AI is currently a major propulsion of S & P 500 future revenue growth. According to Coatue’s prediction, AI binding shares are expected to grow at almost 20 % of the year in the next three years. 14 %. Furthermore, 40 % of future high -tector revenue is expected to be promoted by AI progress. All available data points to the bright future of AI investment, which is far beyond conventional high -tech companies. As companies continue to integrate AI into business, productivity and economic growth are set to accelerate, and AI is one of the most transformed power in modern history.
In this article, I checked a note on the AI industry by Coatue Management and selected AI stock. These stocks are popular among other hedge funds. Why are hedge funds interested in stocks accumulated? The reason is easy. Our survey shows that imitation of the best hedge fund top stock pick can exceed the market. Quarterly Newsletter’s strategy has selected 14 small and large stocks every quarter, returned 275 % since May 2014, and broke the benchmark 150 % (see here for details).
Qualcomm Incorporated (QCOM): Generative AI satisfies car innovation
The aerial view of the lively semiconductor production zone introduces the integrated circuit of the company.
Number of hedge fund holders: 74
Qualcomm Incorporated (nasdaq) develops and sells basic technology for the wireless industry. In the 4th quarter of 2024 reports, the company reported that the profit was adjusted with a profit of $ 10.24 billion and the $ 2.69 per share (EPS), and exceeded the market expectations. This emphasizes the strong sales of companies promoted by smartphone chips in the Chinese market. Qualcomm Incorporated (nasdaq: Qcom) has also expanded its collaboration with Panasonic Automotive Systems aimed at transforming vehicle experiences on the Snapdragon CockPit Elite platform. This new stage is a new stage of the next -generation vehicle technology, including the immersive multimedia function, optimized game, and advanced 3D graphics, bringing the generated AI to the forefront of car innovation. 。
As a whole, QCOM is ranked 15th in Cotue’s most important AI stock list. We acknowledge the possibility of QCOM’s investment, but our convicted judgment is greater to provide higher profits and do it within a shorter time frame. The belief that it has a promise. If you are looking for a stock that is more promising than QCOM but is trading less than 5 times the revenue, please see the cheapest AI shares.
Read the following: 20 AI shares that buy a list of AI companies with a market capitalization of less than $ 2 billion now
Disclosure: None. This article was originally published on Insider Monkey.
Adnan is a passionate doctor from Pakistan with a keen interest in exploring the world of politics, sports, and international affairs. As an avid reader and lifelong learner, he is deeply committed to sharing insights, perspectives, and thought-provoking ideas. His journey combines a love for knowledge with an analytical approach to current events, aiming to inspire meaningful conversations and broaden understanding across a wide range of topics.
