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After an exhaustive search of the internet 120 AI-related stocks have been identified as such of which 73 have market caps of +$1B or more. Of those 73 stocks, however, only 24 have advanced by 20% or more since the bubble began to inflate at the end of April. They are grouped into 4 categories, as follows:

UP +100% 

1. Upstart Holdings (UPST): UP 116.7%
2. Super Micro Computer (SMCI): UP 104.9 %

UP 50% to 99%

1. C3.AI (AI): UP 87.4%
2. Palantir Technologies (PLTR): UP 81.0%
3. Advantest Corporation (ATEYY): UP 64.6%
4. Tesla (TSLA): UP 56.2%
5. Lemonade (LMND): UP 55.6%
6. Recursion Pharmaceuticals (RXRX): UP 54.3%
7. Nvidia (NVDA): UP 52.1%

UP 30% to 49%

1. Symbotic (SYM): UP 48.8%
2. Marvell Technology (MRVL): UP 46.5%
3. Palo Alto Networks (PANW): UP 33.7%
4. Broadcom (AVGO): UP 31.2%

UP 20% to 29% 

1. Netflix (NFLX): UP 28.5%
2. Adobe (ADBE): UP 28.4%
3. Ambarella (AMBA): UP 26.5%
4. Oracle (ORCL): 25.3%
5. Advanced Micro Devices (AMD): UP 23.1%
6. Amazon (AMZN): UP 22.6%
7. Bentley Systems (BSY): UP 21.5%
8. Taiwan Semiconductor (TSM): UP 20.9%
9. Applied Materials (AMAT): UP 20.4%
10. Snowflake (SNOW): UP 20.4%
11. META Platforms (META): UP 20.1%

Major AI-related Companies Not Making The Above Cut

1. Alphabet (GOOGL) stock was only UP 14.0% between April 28th and last Friday, June 23rd,
2. Apple (AAPL): UP 10.0%,
3. Microsoft (MSFT): UP 9.0%,
4. Accenture (ACN): UP 6.5%,
5. Int'l Business Machines (IBM): UP 0.8%,
6. AstraZeneca (AZN): Unchanged  and
7. Medtronic (MDT): DOWN 0.4%.

Summary

The above 24 AI-related stocks were up 35.4%, on average, in the 8 weeks between April 28th and last Friday, June 23rd. In comparison, the S&P 500 was only up 4.2%, the Nasdaq was only up 10.0%, and the Global X Artificial Intelligence and Technology ETF (AIQ), which invests in 93 companies developing and utilizing artificial intelligence technology in their products and services, was only up 15.1%.

Financial Bubbles

The first two stages in the lifecycle of a bubble are:

• the Displacement Phase which occurs when investors get enamored by a new paradigm, such as an innovative new technology like the artificial intelligence application, for example, and
• the Boom Phase when prices gain momentum as more and more participants enter the market in the fear of missing out on what could possibly be a once-in-a-lifetime opportunity. That spurs even more speculation, drawing an increasing number of investors and traders into the fold resulting in an even further surge in stock prices.

Conclusion

With the Global X Artificial Intelligence and Technology ETF, consisting of 93 of the 120 AI-related stocks in the sector, only up 15.1% compared to the 35.4% increase in the 24 stocks mentioned above, it is clearly evident that the AI-sector is in a bubble, although limited to just 20% of its constituents. If, and when, the 7 AI-related large cap stocks that didn't make the cut get involved, and some of the smaller capitalized companies also do, we might well see a further inflating of the current bubble. I will keep you informed of such developments in the weeks ahead. 

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