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An Introduction

This article is a review of the performances of all 10 of the artificial intelligence stock categories I frequently report on to allow for a direct comparison of how each has done relative to each other to help one evaluate each category and make prudent investment decisions accordingly. 
 

10 AI Categories Compared

The categories are presented below for last week, in descending order, and YTD along with a description of what makes up each category, the stocks included in each, and dates and links to the most recent articles on each.

1. Best Value AI Stocks: UP 4.3% last week; UP 21.3% YTD
   • Description: This portfolio identifies and tracks those AI stocks that exhibit more room to run in 2024 based on their current excellent Price-to-Earnings (1-year) Growth (PEG) Ratio valuation metrics.
   • 8 Constituents: AMD, AVGO, CRM, DELL, NVDA, PATH, PLTR and TEAM.
   • Latest Article: Jan. 15th
2. Custom Design AI Chip Stocks: UP 4.0% last week; UP 5.7% YTD
   • Description: Given a projected 11% CAGR between now and 2028, the stock prices of electronic design automation (EDA) software companies creating these custom designed chips stocks is set to take off and this portfolio tracks the stock price changes in these companies.
   •  3 Constituents (soon to be only 2): ANSS, SNPS (which is acquiring ANSS) and CDNS,
   • Latest Article: Jan. 5th
3. AI-enabled PC Stocks: UP 3.8% last week; UP 5.4% YTD
   • Description: A computing revolution is coming with a decade of growth in PC upgrades and innovation as a result of the introduction of neural processing units in the latest chip designs. This portfolio tracks the stock performances of the companies that have introduced, or plan to introduce, AI-enabled PCs in 2024.
   • 4 Constituents: DELL, HPQ, LNVGY and MSI.
   • Latest Article: Feb. 14th
4. Cloud Computing Stocks: UP 1.9% last week; UP 6.9% YTD
   • Description:  The cloud computing market is forecast to expand at a 17% CAGR between 2022 and 2027 which should bode well for the stock performances of the cloud computing companies that this portfolio tracks.
   • 8 Constituents: ANET, BOX, DBX, DDOG, DLR, EQIX, PSTG and VRSN.
   • Latest Article: Jan. 18th
5. Quantum Computing Stocks: UP 1.8% last week; UP 3.5% YTD
   • 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: AMD, BIDU, HON, IBM, INTC, IONQ, MU, QBTS and RGTI
   • Latest Article: Feb. 21st
6. Semiconductor (Chip) Stocks: UP 1.6% last week; UP 20.5% YTD
   • Description:  The price of AI chip stocks surged by 64% in 2023 and many analysts think there is an excellent chance that the chip boom will continue in 2024 and this portfolio tracks the stock performances of the major players in this category.
   • 15 Constituents: ATEYY, AMAT, AMD, ASML, AVGO, ENTG, KLAC, LRCX, MKSI, MPWR, MRKL, MU, NVDA, QCOM and TSM.
   • Latest Article: Feb. 11th
7. U.S. Semiconductor Stocks: DOWN 2.5% last week; DOWN 4.6% YTD
   • Description: Only 12% of the global semiconductor manufacturing capacity is in the U.S. and that has resulted in the passage of the CHIPS for America Act to revive the U.S.- domiciled semiconductor industry and this portfolio tracks the performance of 4 such stocks.
   • 4 Constituents: ENPH, GPS, AMKR and LHX
   • Latest Article: Feb. 20th
8. AI-Powered Drug Discovery Stocks: DOWN 5.8% last week; DOWN 4.1% YTD
   • 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.
   • 8 Constituents: ABCL, ABSI, BTAI, EXAI, LTRN, RLAY, RXRX and SDGR.
   • Latest Article: Feb.19th
9. Cyber Security Software Stocks: DOWN 7.8% last week; UP 5.5% YTD
   • 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: CHKP, CRWD, CYBR, FTNT, PANW, QLYS, S, TENB, VRNS and ZS.
   • Latest Article: Feb. 25th
10. Micro/Small Cap AI Stocks: DOWN 14.8% last week; DOWN 8.3% YTD
    • Description: Micro/small cap AI stocks are less expensive, on average, and with more explosive upside potential than large cap AI stocks and, as such, warrant investors' attention and this portfolio tracks the performance of the largest of those stocks.
    • 8 Constituents: AAOI, BBAI, DMRC, EVLV, INOD, REKR, SOUN and VRSSF.
    • Latest Article: Feb. 26th

In comparison, the AIQ Global X Artificial Intelligence & Technology ETF (AIQ) of 91 constituents was UP 1.4% last week and is now UP 6.1% YTD.

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