Stocks Related to Artificial Intelligence and Machine Learning!

Dear Reader,


Artificial intelligence and its subset machine learning is the next big thing in information technology.

How to invest in artificial intelligence on the stock market? The most directly related to artificial intelligence companies traded on US stock markets are chip producers like Intel Corporation, Advanced Micro Devices, Inc. and NVIDIA Corporation. Artificial intelligence and its application machine learning basically is a string of algorithms or with other words said computer calculations.

Intel went close to its dot-com peak recently, while Advanced Micro Devices currently surpasses its dot-com era high point of its stock price. NVIDIA has been a stock market darling in the recent decade as its graphics processing units have been deemed by the market as the most suitable for the intensive computations related to artificial intelligence and machine learning.

Currently, I estimate that Advanced Micro Devices and NVIDIA Corporation are currently overvalued by respectively circa 30% and 40% by public markets. Intel Corporation is more mildly overvalued, according to my opinion, by circa 10%.

The expected growth priced in the stock market valuations of Advanced Micro Devices, NVIDIA Corporation and Intel Corporation is simply too high and it is very doubtful it will come to fruition.

Yes, artificial intelligence is the global technology disruptor of our lifetime, most likely. But as in the dot-com boom the prices of stocks related to artificial intelligence have just run up too high too fast. Yes, in the future they well be worth even more, but for now Advanced Micro Devices, NVIDIA Corporation and Intel Corporation look overvalued.

Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities.  Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is as is.

Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.

Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!

Respectfully yours,

Petar Posledovich

What is The Next Big Thing in Information Technology!

Dear Reader,


Every five or ten years new mega trends emerge in information technology. What are the next big waves in technology?

As far as I am concerned, there are several trends that are taking and are going to take the technology world by storm. Video is the current major mega trend. In its most recent form, internet video streaming is growing in market size by circa 20% a year and the global video streaming market is already in the tens of billions of United States dollars.

Another major trend is artificial intelligence. Artificial intelligence is not so clear-cut as video. Artificial intelligence is basically the usage of automation - computer algorithms that automate various tasks. All the major websites like Google, Facebook, Apple's products, Amazon and Microsoft use artificial intelligence intensively in many ways. Most popular websites use artificial intelligence in one way or another. Many world leaders have implied that the one who masters artificial intelligence will "master" the future of the world. The speed of internet is now ripe for artificial intelligence to enhance our digital future in a major way.

Internet of things' growth has stalled in recent years. The advent of 5G networks could prove the missing link in the future development of internet of things. But for now, it looks too early for internet of things to become mainstream in a bigger way.

Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities.  Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is as is.

Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.

Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!

Respectfully yours,

Petar Posledovich

Netflix Valuation!

Dear Reader,


Here I am going to attempt to value Netflix Inc, the Scotts Valley, California based company for video streaming.

Netflix is currently valued at 152.739 billion USD by US public markets. Is Netflix undervalued? Yes. In the current environment and in the long term I think Netflix is circa 50% undervalued? Why? Because video streaming is the new hot mega trend in internet services and Netflix is the leader in the video streaming category. The global video streaming market size is estimated at 36.64 billion USD as of 2018 by various market sources. By 2023 the global video streaming market size is expected to reach 102.0971 billion USD by 2023.

Netflix reported revenue of 15.794 billion USD in 2018. So basically in terms of revenue Netflix has close to 50% of the global video streaming market. Netflix's revenue has been growing with more than 30% year on year for the last three reported years up to 2018 full year earnings. What is more, now Netflix is profitable recording 1.2 billion USD in profit. The trailing Price/Earnings ratio of 84.39 of Netflix seems high, but Netflix has been raising its net profit margin percentage steadily in the last several yeas.

A risk before my prognosis is that an economic recession could come and Netflix's stock price could tank along with the rest of the stock market. But the trend toward the merger of TV and Internet will remain intact and after a possible crisis Netflix could emerge even stronger and the fall in price, if it happens, could prove a good buying point.

Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities.  Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is as is.

Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.

Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!

Respectfully yours,

Petar Posledovich