Investing in the Future: AI Stocks in the Spotlight of Analysts

The release of the latest quarterly figures is causing a stir in the financial world, particularly in the field of artificial intelligence (AI). Analysts predict that earnings growth in the S&P 500 will slow down. While there was an increase of 13.2% in the second quarter, experts now anticipate a year-over-year rise of only 5.3%. Nevertheless, the technology sector remains robust with an expected earnings increase of 15.4%, closely followed by communication technologies with 12.3%. AI companies are a dominant theme and have significantly influenced the market, driving the S&P 500 to a record high—a rise of about 21% since the beginning of the year. Howard Chan, CEO of Kurv Investment Management, emphasizes the importance of monetizing AI initiatives by companies, with successful providers experiencing significant gains in stock prices. Meta has recently demonstrated this, benefiting from a rising stock value thanks to strong revenue forecasts based on successful AI investments. On the other hand, investments by giants like Google in AI technologies should be critically observed, particularly regarding their business integration. With the S&P 500 currently trading at 22.3 times the estimated future 12-month earnings, many investors are hoping for quarterly figures that justify these high stock valuations. Solita Marcelli of UBS Global Wealth Management is optimistic about the future and expects that the upcoming figures for the third quarter could trigger further gains. The semiconductor sector, especially, is a focal point of AI investments and could provide significant impetus. A look at Dell Technologies reveals a favorable position in the AI sector. Analyst Matt Niknam of Deutsche Bank maintains a buy recommendation for Dell Technologies, with a price target of $144. Particularly, the development of AI servers and a recovery in the traditional server market are viewed as future drivers. Dell currently ranks 15th among the most popular AI stocks.