S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
Dell Technologies breaks out ahead of earnings release
The REAL Reason Americans Keep Falling Behind (Ad)
Dropbox’s stock is a falling knife worth catching
Novavax’s dispute resolution and upcoming earnings call
The REAL Reason Americans Keep Falling Behind (Ad)
Stock ideas from the 2024 Microcap Conference
Warner Bros. Discover: Debt down, profits up, yet questions remain
Free Stock Analysis Report: See The True Value of Any Stock (Ad)
Gloom settles over Germany's economy, with businesses downbeat about the coming months
Sprouts, Block rise; Booking Holdings, Insulet fall, Friday, 2/23/2024
S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
Dell Technologies breaks out ahead of earnings release
The REAL Reason Americans Keep Falling Behind (Ad)
Dropbox’s stock is a falling knife worth catching
Novavax’s dispute resolution and upcoming earnings call
The REAL Reason Americans Keep Falling Behind (Ad)
Stock ideas from the 2024 Microcap Conference
Warner Bros. Discover: Debt down, profits up, yet questions remain
Free Stock Analysis Report: See The True Value of Any Stock (Ad)
Gloom settles over Germany's economy, with businesses downbeat about the coming months
Sprouts, Block rise; Booking Holdings, Insulet fall, Friday, 2/23/2024
S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
Dell Technologies breaks out ahead of earnings release
The REAL Reason Americans Keep Falling Behind (Ad)
Dropbox’s stock is a falling knife worth catching
Novavax’s dispute resolution and upcoming earnings call
The REAL Reason Americans Keep Falling Behind (Ad)
Stock ideas from the 2024 Microcap Conference
Warner Bros. Discover: Debt down, profits up, yet questions remain
Free Stock Analysis Report: See The True Value of Any Stock (Ad)
Gloom settles over Germany's economy, with businesses downbeat about the coming months
Sprouts, Block rise; Booking Holdings, Insulet fall, Friday, 2/23/2024
S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
Dell Technologies breaks out ahead of earnings release
The REAL Reason Americans Keep Falling Behind (Ad)
Dropbox’s stock is a falling knife worth catching
Novavax’s dispute resolution and upcoming earnings call
The REAL Reason Americans Keep Falling Behind (Ad)
Stock ideas from the 2024 Microcap Conference
Warner Bros. Discover: Debt down, profits up, yet questions remain
Free Stock Analysis Report: See The True Value of Any Stock (Ad)
Gloom settles over Germany's economy, with businesses downbeat about the coming months
Sprouts, Block rise; Booking Holdings, Insulet fall, Friday, 2/23/2024

AI 2.0 is Here: How to Invest in a Generational Opportunity

AI 2.0 stocks

Key Points

  • The AI 2.0 wave is crashing over the economy and touching every part.
  • Multiple advances and approaches are in use today, providing value to businesses and investors. 
  • Here are the top 5 advancements in AI and where the technology is being used. 
  • 5 stocks we like better than International Business Machines

It is here for those wondering when the 2nd phase of AI will arrive. We are in the 2nd wave of AI, the wave in which it becomes applied to business at all levels of the chain. NVIDIA NASDAQ: NVDA is the driving force of AI news because of its central role as a chip supplier, but it is only a cog in the wheel. Several types of AI and AI applications are loose in the world and are not all the same.

If not all, many will eventually become integrated, but that will take time, which is why AI is a generational opportunity. The AI revolution is in its earliest phases, has many decades to run, and will drive returns for investors. 

Transformer Networks Get All the Attention 

Transformer networks are giant, pre-trained AI models that can multitask, understand text, read code, and generate new content. ChatGPT and other generative AI models represent this type of AI. This type of network can handle more work with greater accuracy than stand-alone models doing similar workloads.

The businesses doing the most work in this industry are the hyperscalers such as Amazon NASDAQ: AMZN Web Services, Google NASDAQ: GOOG, IBM NYSE: IBM, and MSFT NASDAQ: MSFT, which host the cloud. The cloud is where AI lives, at least for now, and will continue growing. Services using this model include workflow-enhancing automation for digitized networks


Synthetic Data: It’s As Real As It Gets

Synthetic data is an offshoot of transformer networks that evolved based on data needs. It’s hard for AI companies to get sufficiently large quantities of data at reasonable costs, and it is harder every day. Personal privacy is a driving force in society, which helped push the AI community to Synthetic Data.

Synthetic Data is data generated by AI to train other AI. Scary as that sounds, it’s being used by the autonomous driving industry, financial services, insurance providers, pharma companies, and computer vision. Computer vision is an important segment within AI. It allows computers to sense, recognize, inspect, and track objects. When combined with other AI models, data generated by chips from companies like Ambarella NASDAQ: AMBA is turned into actionable information. 

AMBA stock chart

Reinforcement Learning: Optimizing Manufacturing in a New World 

Reinforcement learning takes synthetic data to the next level. It is used to help train machine learning models using multiple environment/data flows, which are augmented and enhanced by synthetic data. These models are used to optimize manufacturing via automation and robotics. Robotics companies ranging from Rockwell Automation NYSE: ROK through Zebra Technologies NASDAQ: ZBRA, Intuitive Surgical NASDAQ: ISRG, and UiPath NYSE: PATH are leaning heavily into this technology.

UiPath develops and markets a range of digital robots that can automate business and industry. Uber NYSE: UBER is a telling example of how useful the platform is. It struggled to keep track of its growth but has been able to refocus on core business with the aid of UiPath automation. 

Federated Learning: The Fabric of AI 

Federated learning encompasses all the technology for combining models, sharing data, and interconnectivity between AI apps. Again, this is the sphere of the hyperscale providers such as Google and Microsoft, but others, such as Oracle NASDAQ: ORCL and Adobe NASDAQ: ADBE stand out as key players.

Adobe is entrenched in the fabric of AI because of its interface. Its interface is present throughout the Internet and is critical to advancing AI applications. MongoDB NASDAQ: MDB also stands out as a player in federated learning, growing at a 40% clip in 2023. 

MDB stock chart

Causal Inference: Advancing Knowledge Globally 

Causal inference is the advancement of data analytics. It can determine cause and effect from data sets, make predictions, and prevent errors based on false assumptions. R&D teams, including pharmaceutical discovery, are using this type of AI. Novartis NYSE: NVS is only 1 of the big 10 pharma companies using this approach, and it is 1 that pays off. Novartis has deals with Microsoft and NVIDIA to scale its AI infrastructure over the next decade. 

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Should you invest $1,000 in International Business Machines right now?

Before you consider International Business Machines, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and International Business Machines wasn't on the list.

While International Business Machines currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

10 Best Cheap Stocks to Buy Now Cover

MarketBeat just released its list of 10 cheap stocks that have been overlooked by the market and may be seriously undervalued. Click the link below to see which companies made the list.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Novartis (NVS)
2.233 of 5 stars
$103.90+1.1%2.18%14.47Hold$104.33
Adobe (ADBE)
4.8563 of 5 stars
$553.44+3.0%N/A46.86Moderate Buy$613.14
Oracle (ORCL)
4.9659 of 5 stars
$111.95+0.8%1.43%30.93Moderate Buy$127.00
MongoDB (MDB)
3.7587 of 5 stars
$451.52+0.3%N/A-171.03Moderate Buy$435.68
Rockwell Automation (ROK)
4.6692 of 5 stars
$280.51+0.7%1.78%26.69Hold$307.92
UiPath (PATH)
2.0232 of 5 stars
$23.33-0.4%N/A-83.32Hold$22.32
Intuitive Surgical (ISRG)
4.6033 of 5 stars
$389.77+0.2%N/A77.49Moderate Buy$371.60
Zebra Technologies (ZBRA)
3.3852 of 5 stars
$274.99-1.6%N/A48.16Hold$267.00
Uber Technologies (UBER)
4.7065 of 5 stars
$78.19+0.2%N/A90.92Moderate Buy$73.06
Ambarella (AMBA)
2.7452 of 5 stars
$55.26+0.6%N/A-18.24Moderate Buy$78.75
Amazon.com (AMZN)
4.8715 of 5 stars
$174.99+0.2%N/A60.34Buy$197.95
Alphabet (GOOG)
3.744 of 5 stars
$145.290.0%N/A25.05Buy$146.33
Microsoft (MSFT)
4.8667 of 5 stars
$410.34-0.3%0.73%37.10Moderate Buy$411.06
NVIDIA (NVDA)
4.5193 of 5 stars
$788.17+0.4%0.02%66.01Moderate Buy$820.03
International Business Machines (IBM)
4.6548 of 5 stars
$185.72+0.8%3.58%22.84Hold$171.92
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

  • tmhughes.writeon@gmail.com

Contributing Author

Technical and Fundamental Analysis

Experience

Thomas Hughes has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies

Education

Associate of Arts in Culinary Technology

Past Experience

Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights. 


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