Photo by Steve Johnson on Unsplash

An Introduction

The 7 artificial intelligence stock categories that I analyze on a weekly basis (see below) have showed increased weakness across the board last week suggesting that the surge in this sector has either stopped or at least stalled. Below is how they performed last week in comparison to each other to help you make prudent investment decisions going forward. 

7 AI Categories Compared

The categories are presented below:

• for last week, in descending order,
• and MTD to provide a short-term trend in each category
• along with a description of what makes up each category,
• the stocks included in each category
• and commentary on those stocks that made significant moves last week, where available.

1. AI-enabled Personal Computer Stocks: DOWN 0.2% last week; UP 6.4% MTD
   • 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: MSI (+2.6%), HPQ, LNVGY and DELL (-8.0%),
2. Cybersecurity Software Stocks: DOWN 1.5% last week; DOWN 6.2% MTD
   • 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 (+2.9%), CRWD, CYBR, PANW, QLYS, TENB, VRNS, ZS, FTNT (-6.5%) and S (-19.5%).
   • Article: Why SentinelOne (S) Shares Are Plunging 
3. Quantum Computing Stocks: DOWN 3.0% last week; UP 0.9% MTD
   • 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: QBTS (+11.2%), BIDU, HON, IBM, INTC, MU, RGTI, AMD (-7.9%) and IONQ (-13.9%)
4. AI-Powered Drug Discovery Stocks: DOWN 3.1% last week; DOWN 1.3% MTD
   • 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: EXAI (+24.5%), ABCL, ABSI, LTRN, RXRX, SDGR, BTAI, (-14.1%) and RLAY, (-23.0%)
5. Custom Design AI Chip Stocks: DOWN 3.2% last week; DOWN 3.0% MTD
   • 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 (soon to be only 2): ANSS, SNPS (which is acquiring ANSS) and CDNS
6. Semiconductor (Chip) Stocks: DOWN 3.7% last week; DOWN 0.6% MTD
   • 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: NVDA (+0.4%), ATEYY, AMAT, ASML, AVGO, ENTG, KLAC, LRCX, MKSI, MPWR, MU, QCOM, TSM. AMD (-8.8%) and MRVL, (-11.8%)
   • Article: Is Marvell Technology Stock a Buy or a Sell as It Falls to a Bearish New Wall Street Price Target?
7. Cloud Computing Stocks: DOWN 4.1% last week; DOWN 3.4% MTD
   • 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 (+1.7%), BOX, DBX, DDOG, DLR, VRSN, EQIX (-6.6%) and PSTG (-9.7%)

Of the 7 categories only cybersecurity software stocks are bucking the downward trend.

The AIQ Global X Artificial Intelligence & Technology ETF (AIQ) of 91 constituents, which best reflects the AI sector as a whole, was DOWN 1.5% last week and is DOWN 6.3% MTD.

More By This Author:

Cresco Labs Q4 Report Shows Major Improvement In Net Profit
Cannabis LPs Jumped 10% On Freaky Friday; Trading Volume Jumped 20%
"Freaky Friday" Startled Our American Cannabis MSO Index, In A Good Way