Forget Generative AI: Agentic AI Is the Next Big Trend to Buy

Core Insights - The launch of ChatGPT by OpenAI in late 2022 initiated a surge in investments related to artificial intelligence, particularly generative AI applications that create content based on data patterns [1] - The focus is shifting from generative AI to agentic AI, which could have significant implications for investors [2] Investment Implications - Companies developing foundational AI models may struggle to maintain a competitive edge, with OpenAI currently leading but facing competition from Alphabet [4] - The hardware layer, particularly Nvidia's GPUs, has been a strong investment in generative AI, driven by high demand [5] - Agentic AI, which operates more autonomously to achieve user goals, will also require powerful processing capabilities and memory products [6][7] Market Trends - Four of the top five stocks in the S&P 500 year-to-date are memory businesses, indicating unprecedented demand for memory products, which will benefit from the agentic AI trend [8] - Micron Technology is highlighted as a particularly interesting stock, with management reporting sold-out supply through the end of next year and a shift in focus to commercial customers [9] - Hardware companies in the generative AI space are better positioned to sustain competitive advantages compared to AI software players, with the agentic AI trend creating opportunities in the memory sector [10]