Photo by Steve Johnson on Unsplash

An Introduction

The 7 AI categories tracked by munKNEE.com went UP 1.5% this week on top of a 2.9% advance the previous week with 3 categories going up, 3 going down with no change in the remaining category. 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. Semiconductor Category: UP 5.1% this week
   • 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: NVDA (+15.1%); QCOM (+8.4%); MRVL (+6.6%); LRCX (+6.4%); TSM (+5.5%)
     • down 5% or more: None
   • Latest news, commentary and/or analysis:
     • Nvidia's 10-for-1 Stock Split Is Coming—What You Need To Know
     • NVIDIA Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
     • Why Qualcomm Stock Could Still Be a Great Value Now
     • Marvell Is Considered a Good Investment by Brokers: Is That True?
     • Lam Research announces $10B buyback, 10-for-1 split: Time to invest?
     • Taiwan Semi Leads While China's SMIC Climbs to Third in Global Chip Market
2. Custom Design EDA Software Category: UP 2.5% this week
   • 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
     • Latest news, commentary and/or analysis:
       • Custom Design AI Chips: These 3 Companies Have A Monopoly
3. AI-enabled Personal Computer Category: UP 1.9% this week
   • 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: LNVGY (+7.6%); Dell (+7.1%); HPQ (+5.0%)
     • down 5% or more: None
     • Latest news, commentary and/or analysis:
       • These Companies Have Launched – Or Will Be Launching – AI PCs in 2024
       • Lenovo Group: Q4 and Full Year Financial Results 2023/24
       • Dell Technologies and Ericsson Form Strategic Partnership to Accelerate Telecom Network Cloud Transformation
       • Dell Announces New AI Offerings, Deepens Ties With Nvidia and Microsoft
       • Dell Introduces Comprehensive Portfolio of Copilot+ AI PCs
4. Cybersecurity Software Category: No Change this week
   • 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: None
   • Latest news, commentary and/or analysis:
     • Top 10 Cybersecurity Stocks
5. Quantum Computing Category: DOWN 0.8% this week
   • 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:
     • down 5% or more: BIDU (-9.3%); RGTI (-7.8%); QBTS (-6.2%)
   • Latest news, commentary and/or analysis:
     • These 9 Companies Are Heavily Involved in Quantum Computing R&D
     • China's Baidu posts weakest quarterly revenue growth in over a year
6. AI-Powered Drug Discovery Category: DOWN 3.0% this week
   • 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: ABCL (+5.8%)
     • down 5% or more: ABSI (-8.9%); EXAI (-9.8%)
   • Latest news, commentary and/or analysis:
     • Absci Reports Business Updates and First Quarter 2024 Financial and Operating Results
     • Exscientia Business Update for First Quarter 2024
7. Cloud Computing SaaS Category: DOWN 4.6% this week
   • 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: TEAM (-6.0%); INTU (-8.2%); WDAY (-14.4%)
   • Latest news, commentary and/or analysis:
     • Cloud Computing: What Is It? Which Are the Major Companies?
     • Insider Sale: President Anutthara Bharadwaj Sells Shares of Atlassian Corp (TEAM)
     • Intuit Stock Slumps After Warning TurboTax Could Lose 1 Million Free Users
     • Workday Stock Plunges Amid Soft Subscription Revenue Guidance

Summary

The 57 constituents (54 when the 3 duplicates are removed) in the 7 categories above went UP 1.5%, on average, this week.

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