Artificial intelligence (AI) could create trillions of dollars in economic activity, and that spells opportunity for investors.At the beginning of 2023, semiconductor giant Nvidia (NVDA 0.81%) was a $360 billion company. Its fortunes quickly changed when OpenAI and its artificial intelligence (AI)-powered chatbot, ChatGPT, captivated investors.ChatGPT's ability to accurately answer complex questions and generate text and computer code on command sent some of the world's largest tech giants clamoring to buy ...

Artificial intelligence (AI) has catapulted Nvidia into the ranks of the world's most valuable companies.The world's most valuable company, Microsoft (MSFT -0.27%), has a market capitalization of $3.2 trillion, and it's the only member of the "$3 trillion club" right now. Apple was a club member last year, but then a decline in stock price pulled its market cap down to $2.9 trillion. So this club is so exclusive, it only has one member.But that exclusivity may not last as another company is rocketing up the ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Core Viewpoint - The generative artificial intelligence boom presents a significant opportunity for Alphabet, positioning it as a leading stock in the AI sector as the market expands rapidly [1]. Group 1: Financial Performance - Alphabet reported a 15% increase in revenue to $80.5 billion in the first quarter, with GAAP net income soaring 57% to $23.7 billion, marking four consecutive quarters of accelerated growth [2]. - The company has a strong presence in digital advertising and cloud computing, with Google Search and YouTube driving ad sales despite a decline in the Google Network [3][4]. Group 2: Market Position - Google maintains over 90% market share in internet search referrals and is the leading streaming service on YouTube, capturing 28.1% of digital ad sales last year, significantly ahead of competitors [3][4]. - Google Cloud Platform is the third-largest provider of cloud services, gaining market share over the past year, which could continue as generative AI adoption increases [4]. Group 3: Generative AI Integration - Alphabet is integrating its generative AI model, Gemini, into its advertising ecosystem, allowing marketers to create media assets and campaigns using natural language [5]. - AI Overviews in Google Search enhance user experience and satisfaction, contributing to increased usage [6]. Group 4: Cloud Computing Enhancements - Gemini is also being utilized to automate tasks in Google Workspace, enhancing productivity for cloud customers [7]. - Over 60% of funded generative AI start-ups and 90% of generative AI unicorns are customers of Google Cloud, indicating strong demand for its services [8]. Group 5: Valuation and Growth Potential - Digital ad spending is expected to grow at 15% annually through 2030, while the cloud computing market is projected to expand at 21% annually [9]. - Alphabet's current valuation of 7.3 times sales is considered reasonable, with potential for exceeding sales growth forecasts depending on the successful monetization of generative AI [9].

Group 1: Company Overview - Broadcom's stock has increased approximately 1,900% over the past decade, showcasing its robust growth and strategic acquisitions [1] - The company has a market capitalization of $650 billion, making it one of the most valuable chipmakers globally, yet it remains significantly smaller than its largest customer, Apple, which has a market cap of $2.9 trillion [1] Group 2: Growth Strategy - Broadcom has expanded its portfolio through numerous acquisitions, including CA Technologies, Symantec's enterprise security division, and VMware, aiming to diversify its revenue sources beyond semiconductors [2] - The semiconductor business accounted for 79% of Broadcom's revenue in fiscal 2023, with plans to reduce this to approximately 50% post-VMware acquisition [2] Group 3: Financial Performance - From fiscal 2016 to fiscal 2023, Broadcom's adjusted revenue grew at a compound annual growth rate (CAGR) of 15%, with adjusted gross margin increasing from 60.5% to 74.7% and adjusted earnings per share (EPS) rising at a CAGR of 21% [3] - Analysts project revenue and adjusted EPS growth of 41% and 11%, respectively, for fiscal 2024, followed by 14% and 22% growth in fiscal 2025 [3] Group 4: Market Position and Valuation - Broadcom's valuation is currently at 30 times forward earnings, influenced by strong demand for AI chips, which saw sales quadruple year-over-year to $2.3 billion in Q1 of fiscal 2024 [4] - AI chip sales are expected to account for 35% of Broadcom's total semiconductor revenue for the full year [4] Group 5: Future Outlook - While Broadcom's growth potential is significant, it is unlikely to surpass Apple in market capitalization by 2040, as Apple's stock would only need to increase by less than 50% to maintain its lead [6][7] - Broadcom could see substantial gains from its current levels as it continues to expand its semiconductor and software businesses, but careful monitoring of its expansion strategies is essential to avoid margin erosion or excessive debt [7]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Here's why the oil and gas company is a buy after today's price drop.Shares of ConocoPhillips (COP -3.94%) tumbled this morning and were trading 3.5% lower as of 11:30 a.m. ET on Wednesday.With several of its peers on a buying spree in recent months, today's big announcement from ConocoPhillips shouldn't have surprised investors. The oil and gas company is acquiring a peer in a multibillion-dollar deal and expects the acquisition to create long-term value for shareholders.ConocoPhillips will acquire Maratho ...

Core Viewpoint - GoPro is attempting to expand its appeal and develop a subscription business, but current subscription growth has stagnated, raising concerns about its market reach and sustainability [1][4][5]. Subscription Business - GoPro has introduced a subscription service to transition from episodic camera purchases to a more stable revenue stream, with high renewal rates: 60%-65% in year one, 70%-75% in year two, and around 80% in year three [2][3]. - The subscriber count increased from approximately 940,000 in Q1 2021 to 2.5 million in Q1 2024, indicating initial success [3]. Subscriber Growth Challenges - Subscriber growth has plateaued at around 2.5 million for three consecutive quarters, including the critical holiday season, which typically boosts sales [4]. - The niche nature of GoPro's products poses a challenge, as the company may have reached its market capacity, necessitating a broader product lineup to attract more consumers [4][5]. Business Sustainability - The success of the subscription service and the expansion of the product lineup are crucial for GoPro to regain investor confidence and ensure long-term viability [5]. - Without a successful strategy to attract new customers, GoPro may struggle to maintain its status as a standalone entity [5][6].

Advanced Micro Devices is very bullish about the potential for its AI Chip, the MI300X.In today's video, I discuss recent updates impacting Advanced Micro Devices (AMD -4.36%) and whether it's a better buy than Nvidia (NVDA -1.19%). Check out the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were the after-market prices of May 28, 2024. The video was published on May 28, 2024. ...

Group 1 - The Ark Innovation ETF (ARKK) is a flagship product of Ark Invest, focusing on disruptive innovation with $7.8 billion in assets under management [3][4] - The ETF primarily invests in technology and internet-related stocks, aiming for significant growth potential through companies like Tesla, Coinbase, Roku, Block, and UiPath [5][4] - Over the past five years, the Ark Innovation ETF has only gained 6.3%, contrasting sharply with competitors like the Invesco QQQ Trust, which increased by 159% [6][7] Group 2 - The ETF has a relatively high expense ratio of 0.75%, which, combined with its poor performance, raises concerns about its attractiveness compared to other ETFs with lower expense ratios [6][8] - The Vanguard S&P 500 ETF, with an expense ratio of just 0.03%, has also outperformed the Ark Innovation ETF over the same period, highlighting the importance of cost relative to returns [8] - The future performance of the Ark Innovation ETF remains uncertain, and potential investors should be aware of its strategy and historical performance before making investment decisions [9]