Disclaimer:

Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts 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 blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Friday, December 15, 2023

AI Stocks. Artificial Intelligence Powered Stocks

 


Artificial intelligence, AI stocks could be deemed NVIDIA, Alphabet, Google owner, Microsoft, Amazon, Apple, Arista Networks.

NVIDIA, which creates the graphical processing units and semiconductors for artificial intelligence, AI is overvalued by 40 % short-term. In the long-term, 7-10 years from now NVIDIA could end up with 3.4 trillion USD market capitalization, though. NVIDIA produces graphical processing units and servers, which are used in artificial intelligence, AI. The architecture of NVIDIA's AI processors and transistors is top notch. NVDIA exhibits extremely high profitability of circa 33 %, which partly substantiates its current market capitalization. As long as NVIDIA is at the forefront of artificial intelligence, AI processors production, NVIDIA's potential market capitalization will be measured in trillions of USD.


Alphabet, Google owner is undervalued on the amount of information it possesses. Alphabet's intrinsic worth is 4.8 trillion USD, if Alphabet, via its Google stored information begins to harvest, store, manage, analyze and most importantly derive deep insights from the information it possesses. Here artificial intelligence, AI could help Alphabet, via its Google property enormously. Google has other ancillary properties like YouTube, AdSense, Boston Dynamics, Google Cloud which will substantially change our world with time. Google Cloud storage and analysis relies heavily on artificial intelligence, AI algorithms to function. Artificial intelligence, AI algorithms are used for video recommendations in YouTube and are the main reason for the huge success of YouTube. Videos are a mega trend and as long as YouTube is placed at the cusp of videos production, only the value of YouTube could reach 1 trillion USD in the long-term future, according to Wolfteam Ltd.'s forecasts. It is no secret that even Google relies almost exclusively on an artificial intelligence, AI neural network to produce its search results.

 

Android is another avenue of growth for Alphabet Inc. Android via its Play Store gathers unbelievable, huge amounts of information about Android users which can be monetized via internet advertisements. Play Store gets a cut of 30 % from all fees gathered by software applications posted on the Play Store. This revenue can be increased in two ways. Alphabet, Google owner attracts, enlarges the number and market share of Android mobile operating system users and attracts better developers on its Play Store. Alphabet is trying to develop its own line of mobile phone devices via the Nexus mobile phone offerings, but this strategy needs tweaking to work better and enlarge the market share of Nexus phones. On the other hands by growing the market share of Android users, Alphabet can make itself more attractive, so the developers of the hottest software applications like new electronic games, news applications, sports applications first choose Android over Apple's App Store.

Microsoft is also undervalued on AI. Microsoft's intrinsic worth is 3.7 trillion USD because mainly of its artificial intelligence, AI based cloud offering Azure. Here the enlarged information quantity derived from the cloud version of Microsoft Office also plays a role. AI could help Microsoft analyze its data better. Azure, the cloud subsidiary of Microsoft uses extensively artificial intelligence, AI to store, analyze and output information. Artificial intelligence, AI is being more and more daily integrated into the functioning of Microsoft office. Microsoft owns 49 % of OpenAI, the producer otf the ChatGPT chat bot neural network which is the latest craze in artificial intelligence, AI.  ChatGPT is ubiquitous already all over the world and its artificial intelligence, AI neural network is producing excellent chat results. ChatGPT can even create software applications on its own. Wolfteam Ltd.'s house view is that OpenAI's ChatGPT artificial intelligence, AI neural network chat bot is still far away from rivaling Alphabet's Google, but as long OpenAI continues developing ChatGPT's artificial intelligence, AI without the distraction of corporate scandals and turmoils both OpenAI's and Microsoft's future is bright.

Amazon is also undervalued. Amazon's intrinsic worth is 3.2 trillion USD on the AI, artificial intelligence cloud offering of Amazon Web Services. Amazon Web Services relies heavily on artificial intelligence, AI to produce its results and drive storage. Amazon's US delivery business is mildly profitable, while its international delivery business is loss making. Amazon Web Services powered by artificial intelligence, AI is mainly delivering the profits for Amazon. Amazon Web Services exhibits net profit margins of around 20 %. In addition Amazon now is the third largest corporation in revenue from internet advertisements behind only Alphabet's Google property and Meta's Facebook. 

Actually, cloud computing is forecast to reach 700 billion USD in revenue in a couple of. Amazon is the leader in cloud computing, especially the most important part of Infrastructure as a Service, which makes it poised for huge revenue and profit growth of Amazon Web Services offering. Cloud computing is the future of computing and via the artificial intelligence, AI algorithms that Amazon is using to power it, Amazon is set to become a 4 trillion USD companies in an optimistic case. Through the last decades Amazon was plagued by its low or even negative profitability, which many Wall Street analysts argued makes it difficult to substantiate Amazon's hundreds of billions of USDs and now more than a 1 trillion USD market capitalization. The scalability of Amazon Web Services cloud offering is very profitable and could slowly solve the net profit problem of Amazon. What is more, via its cloud offering Amazon also gathers huge thousands of terabytes of unique information on its users which could be monetized in the future.


Apple is slightly undervalued also on the amount of data which Apple possesses which could be analyzed better with artificial intelligence, AI. Apple's intrinsic worth is 3.8 trillion USD. Apple already uses artificial intelligence, AI algorithms for application recommendations in its App Store, which is the growth engine behind Apple's services revenue. 


Apple relies and stakes its future on its services revenue. Apple's App Store powered by artificial intelligence, AI neural networks is instrumental in Apple's future. Around 30 % of Apples' quarterly revenue already is derived from its services business. 20 % from each Apple's Macintosh, iPhone and iPad sales is booked as services revenue. And many of Apple's own applications like its Keynote, Numbers, Pages office suite use artificial intelligence, AI. Apple is designing and developing its own computer chips now with a focus on artificial intelligence, AI. 

 

The new chips M1 by Apple are supposed to process faster large amounts of data which will make easier doing artificial intelligence, AI modelling. All said, though, Apple moves predominantly on the inertia inherited from Steve Jobs' time at the company. Macintosh computers, iPhone and iPad were all developed during Steve Jobs's time at Apple. And 75 % of the revenue Apple makes every year comes from Macintosh computers, iPhone and iPad. Even the services revenue Apple gets is tightly knit together with the Macintosh computers, iPhone and iPad. Apple Inc needs a new, breakthrough technology product. Rumor has long had it that Apple is trying to develop an Apple car, under the name project Titan. In addition, Apple has said on numerous occasions it has its eye on Apple television set. Both an Apple car and an Apple TV will rely heavily on artificial intelligence, AI. Cars, nowadays are just computers on wheels. Artificial intelligence, AI will ease the selection of channels and programs while watching TV and make for great viewing recommendations. Added to that, Apple possesses a huge treasure trove of information gathered via the Macintosh computers, iPhone and iPad and the App Store. Artificial intelligence can be used to gather, store, analyze and derive insights from that information better. What is more, via its iCloud offering Apple is in the more than 1 trillion USD annual revenue in five years cloud computing market. Apple does not yet offer the cloud computing's crown jewel Infrastructure as a Service. Apple just offers iCloud storage. Still, even only with the iCloud storage Apple possesses huge amount of information, which could be store, managed and analyzed via artificial intelligence, AI.


Arista Networks, the circuits and switches provider for artificial intelligence, AI information processing is also undervalued. Arista Networks' intrinsic worth is 160 billion USD in the long run, according to Wolfteam Ltd.'s corporate view. Arista Networks is extremely profitable exhibiting net profit margins of around 33 % powered by artificial intelligence, AI algorithms. Arista Networks, with its circuits and switching powering artificial intelligence, AI computers and services could quite possibly become what is Cisco for the internet. Arista Networks is basically providing the hardware for large data centers, cloud computing and artificial intelligence, AI environments. Via Arista Networks' switches more efficient distribution of resources for artificial intelligence, cloud computing can be achieved. Data centers are vital for artificial intelligence, AI computing and Arista Networks is at the forefront of that development. In short, Aritsta Networks provide the network infrastructure for AI networking and Cloud networking which are indispensable for today's and tomorrow's computing. Via Arista Networks offering the power of artificial intelligence and the cloud is magnified significantly.

All in all, artificial intelligence, AI is the future of computing, but the initial bubble, as with any new, exciting technology is overblown a bit at the moment, according to Wolfteam Ltd. After the artificial intelligence, AI bubble bursts a new AI hyper growth era will ensue, according to Woflteam Ltd.'s projections.




1 comment:

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