5 Of 7 AI Categories Rose, Slightly, Over Past Week

Photo by Steve Johnson on Unsplash

An Introduction

The 7 AI categories tracked by munKNEE.com went up marginally (1.0%, on average) the second week of May after having gone down 0.4% the previous week. This article identifies how each category performed, in descending order, along with a description of what makes up each category, the stocks included in each category, those stocks in each category that went up or down by 5% or more during the week (click on stock symbol for details), and commentary on those stocks that made significant moves this week, where available.

1. AI-enabled Personal Computer Category: up 3.9% the second week of May
   • 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, LNVGY, MSI, and HPQ
     • up 5% or more: None
     • down 5% or more: None
2. Custom Design EDA Software Category: up 3.0% the second week of May
   • 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
     • up 5% or more: None
     • down 5% or more: None
3. Semiconductor (Chip) Category: up 2.3% the second week of May
   • 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, and ATEYY
     • up 5% or more: TSM (+5.4%), MU (+5.7%), MKSI (+6.9%)
     • down 5% or more: None
   • Latest news, commentary and/or analysis: 
     • TSM Hammers April Sales Results on AI Chip Demand
     • Investors Heavily Search MU: Here is What You Need to Know
     • MKS Instruments Reports First Quarter 2024 Financial Results
4. Quantum Computing Category: up 1.3% the second week of May
   • 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, IBM, AMD, RGTI, INTC, and QBTS
     • up 5% or more: MU (+5.7%)
     • down 5% or more: QBTS (-7.1%), RGTI (-17.1%)
   • Latest news, commentary and/or analysis:
     • Micron (MU) May Find a Bottom Soon, Here's Why You Should Buy the Stock Now
     • D-Wave (QBTS) Announces Fast-Anneal Feature Availability in Leap(TM) Quantum Cloud Service
     • Rigetti Computing (RGTI) Reports First Quarter 2024 Financial Results
5. Cybersecurity Software Category: up 0.06% the second week of May
   • 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
     • up 5% or more: None
     • down 5% or more: QLYS (-9.1%)
   • Latest news, commentary and/or analysis:
     • Qualys (QLYS) Announces First Quarter 2024 Financial Results
6. Cloud Computing SaaS Category: down 0.07% the second week of May
   • 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
     • up 5% or more: None
     • down 5% or more: SHOP (-20.8%)
   • Latest news, commentary and/or analysis:
     • Shopify (SHOP) Stock Sinks on Disappointing Guidance
7. AI-Powered Drug Discovery Category: down 3.8% the second week of May
   • 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, ABCL, ABSI, RXRX, RLAY, and EXAI
     • up 5% or more: None
     • down 5% or more: ABCL (-5.0%), RLAY (-8.8%)
   • Latest news, commentary and/or analysis:
     • AbCellera (ABCL) Reports Q1 2024 Business Results
     • Relay Therapeutics (RLAY) Reports First Quarter 2024 Financial Results and Corporate Highlights

Summary

The 57 constituents (54 when the 3 duplicates are removed) in the 7 categories above went up 1.0%, on average, this week.

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