Public AI Stocks

Public companies that are most affected by AI

This week I changed things up. I included the feature article for The Artificially Intelligent Enterprise Network only. I have a ton more content on my website but the LinkedIn newsletter editor is a bit limited. So if you want any of the following head on over to TheAIEnterprise.io/p/public-ai-stocks and get the follow:

Five Tools to Help You Use AI for Your Finances

A ChatGPT Prompt to do Detailed Financial Analysis

The AIEI, an index of the top stocks that are affected by AI and their performance

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My first adult job was in finance. I hated it.

I sold life, health, annuities, and mutual funds in my hometown. I didn’t like the job, but I loved what I learned. It’s stuck with me: how to look at a company's fundamentals, read financial reports, and evaluate metrics.

It’s not easy, but it’s been a valuable life skill. Check out the week's prompt below to see how I quantified that knowledge in a ChatGPT.

However, I think a more holistic view of how AI is affecting our public markets is missing. I always get the question, “What stocks are AI stocks?” To answer that question, I created the?AIE AI Stock Index?below, explaining which stocks are affected by AI and why.

Note: This doesn’t constitute financial advice. I am not advocating an AIE AI Stock Index for trading purposes but rather as an indicator of AI as it affects public markets.

The AIE AI Stock Index

The Artificial Intelligence Enterprises (AIE) Index comprises a curated selection of companies that significantly impact the AI landscape. This index includes companies solely focused on AI, those providing essential AI hardware and infrastructure, tech giants with substantial AI investments, AI-enabled industrial and consumer companies, AI-supporting software and services, and AI-related real estate. Follow the link below to see the logic behind each company's inclusion.

The AIE Index

As I mentioned, this isn’t an investment vehicle of any kind. It’s just an equally weighted index of all the stocks I think have a significant artificial intelligence component. Here’s a breakdown of the categories.

Understanding the AI Transformation

Pure AI companies like C3.ai, UiPath, and Palantir Technologies are pioneering the development of AI solutions integral to digital transformation. These companies are improving business processes and fundamentally changing how businesses operate. Their innovations, from intelligent automation to big data analytics, enable companies to make smarter decisions and operate more efficiently. Though I can’t personally vouch for the quality of their solutions just what they are developing.

The Role of AI Hardware and Infrastructure

Hardware giants like NVIDIA, AMD, and Intel are powering the AI revolution. These companies provide the essential computational power for AI and machine learning workloads. Their advancements in GPUs and AI-optimized processors are driving AI capabilities to new heights. Additionally, infrastructure providers like Vertiv and Super Micro Computer ensure that the backbone for AI applications are robust and reliable.

Tech Giants and AI Integration

Tech behemoths like Microsoft, Alphabet, and Amazon are at the forefront of integrating AI into their vast ecosystems. Their investments in AI research and development are setting industry standards and showcasing the potential of AI to enhance product offerings and customer experiences. These companies' AI initiatives are crucial indicators of how AI becomes integral to mainstream technology and services.

AI in Industrial and Consumer Applications

AI's impact extends to industrial and consumer applications through companies like Symbotic and Tesla. From optimizing supply chain management to advancing autonomous driving, these companies illustrate how AI revolutionizes traditional sectors and creates new market opportunities.

Supporting Software and Real Estate

Software companies like Adobe and Synopsys are enhancing their products with AI, making them more efficient and user-friendly. Meanwhile, Digital Realty Trust highlights the critical role of data centers in supporting AI operations, emphasizing the need for scalable and reliable infrastructure.

Conclusion

My intent in creating the AIE Index is more to educate and learn how AI affects public markets. By observing the companies within this index, stakeholders can gain valuable insights into the trends, advancements, and market dynamics driven by AI. I believe this perspective is crucial for businesses leveraging AI to gain a competitive advantage in an increasingly digital world.