These 2 Under-The-Radar AI Stocks Could Outperform In 2024
Portfolio Pulse from Adam Eckert
Gene Munster of Deepwater Asset Management predicts that smaller AI companies will outperform the 'Magnificent 7' mega-cap tech stocks in 2024. He recommends a 'dumbbell' investment approach, maintaining exposure to mega caps while investing in underappreciated AI stocks like Unity Software Inc (U) and Etsy Inc (ETSY). Munster suggests that Unity's work on spatial environments using AI and Etsy's implementation of AI in product development will benefit their stocks. He also favors Alphabet Inc (GOOG) and Apple Inc (AAPL) among the larger tech companies.
January 02, 2024 | 8:23 pm
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POSITIVE IMPACT
Apple Inc, despite being the laggard among the Magnificent 7 in 2023, is still favored by Munster for 2024, which could support its stock price.
Apple's inclusion as a favored stock by Munster, despite its slower growth among the Magnificent 7, indicates a belief in its potential to maintain or increase its stock value.
CONFIDENCE 65
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Etsy is anticipated to benefit from AI integration in product development, which may lead to a rise in its stock price.
Munster's comments on Etsy's AI implementation for product creativity indicate potential for stock growth as the company may attract more customers and sales.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Alphabet Inc is one of Munster's top picks among mega-cap tech stocks for 2024, which could mean a stable or positive performance for its shares.
While the focus is on smaller AI companies, Munster's inclusion of Alphabet as a top pick suggests confidence in its continued strong performance, potentially leading to a stable or positive impact on its stock price.
CONFIDENCE 65
IMPORTANCE 65
RELEVANCE 60
POSITIVE IMPACT
Unity Software is expected to grow due to its AI-driven spatial environment technology, which could positively impact its stock price.
Gene Munster's endorsement of Unity's AI initiatives in spatial environments suggests a positive outlook, which could lead to increased investor interest and a potential stock price increase.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
Nvidia Corp, after a strong performance in 2023, is not specifically mentioned for 2024, but the shift in focus to smaller AI companies could impact its stock.
Nvidia's absence in Munster's 2024 picks, combined with the expected shift to smaller AI companies, suggests a neutral impact on its stock as the market focus changes.
CONFIDENCE 60
IMPORTANCE 50
RELEVANCE 40