AI Is Popping Up Everywhere

• Nvidia had another blowout quarter when they recently reported Q1 2024 earnings, sending the stock even higher on the back of the AI boom.
• Enthusiasm over the possibilities for AI has taken a lot of the credit (or blame) for sending equity markets higher in 2023 and so far in 2024.
• At first blush, you would think that exposure and interest in AI would be mostly relegated to the Tech sector. The chart shows that AI is being mentioned in earnings calls across sectors for various reasons.
• While Tech companies understandably have the most interest in AI (see chart), it’s interesting that AI is starting to pop-up more and more in industries across the spectrum.
• Pure play AI investing has been tough to navigate outside of a few large Tech companies. It’s likely that AI technology will permeate most industries in ways that are impossible for investors to value at the moment.

Sources:

1.   Goldman Sachs, TKer: https://www.tker.co/p/nvidia-earnings-q1-2024-ai-demand-boom