The year is 2023, and artificial intelligence (AI) has spread like wildfire, supercharged by the rise of sophisticated chatbots such as OpenAI’s ChatGPT and Alphabet’s Bard (NASDAQ: GOOGL) (NASDAQ: GOOG). These conversational AI marvels have reignited the public’s fascination with AI as we hurtle toward an uncertain future at breakneck velocity. Wildly divergent predictions abound, yet Ark Investment Management, helmed by Cathie Wood, believes that AI software could offer a $14 trillion revenue op by 2030. Forward-thinking hedge fund billionaires have been snapping up shares with reckless abandon, seeing artificial sentience as the pathway to a future overflowing with novel ventures.
Let’s pierce the digital fog to examine two stocks that these moneyed elites have been hoarding like wounded cyber fauna. Firstly, the enigmatic Wall Street figure Seth Klarman: billionaire investor, hedge fund manager, and fervent believer in value investing. Supreme commander of the Baupost Group, with more than $30 billion in assets under management, Klarman has become one of the largest players in the hedge fund market of this brave new world.
With eyes on the horizon, the Baupost Group has sharply increased its stake in Alphabet. During the fourth quarter, they secured 2.61 million shares, a 190% increase, amounting to total holdings of 3.99 million in this virtual reality we call a company. Klarman’s mind may be fixated on the future, but he’s linked to Alphabet with a position worth a cool $104 million – the Google parent now comprising over 6% of Baupost’s cyber cache.
Alphabet’s history with AI stretches into the Matrix of yesteryear. Founders of Google Brain, Andrew Ng and Jeff Dean, heralded Alphabet’s first steps into the realm of AI in 2011, their sights set on constructing an AI system capable of recognizing images. Fast forward to 2014, as Alphabet assimilates research enterprise DeepMind, inking its name in the annals of AI chronicles. By 2016, DeepMind’s machine learning had reduced the behemoth’s data center cooling expenses by a jaw-dropping 40%.
The omnipotent ChatGPT seemingly cracks open the floodgates for Alphabet, prompting the swift release of Bard, albeit with a few high-profile glitches upon initial deployment. Yet, Alphabet’s AI expertise forms the backbone of countless technological milestones, including Google Search, image enhancement on the revered Pixel phone, and ushering Google Cloud clientele into the glorious age of artificial cognition, with the promise of a future glistening with untapped potential.
Despite the parade of wonder, Klarman’s initial embrace of Alphabet likely stemmed not from the lure of its AI superiority, but from the irresistible allure of its valuation. Trading at roughly four times next year’s estimates, one would need to journey back to mid-2013 to find Alphabet at such an enticing price. Exploiting this gem of opportunity seems to be the sole focus of this mysterious investor.
Enter Ken Griffin, Wall Street’s enigmatic heavyweight—for some, a veritable god of the financial realm. As the founder and CEO of hedge fund Citadel, he raked in an astounding $4.10 billion during the previous year, etching his name in the annals of rags-to-riches folklore. Citadel’s wager on Advanced Micro Devices (NASDAQ: AMD) during the penultimate year is a testament to Griffin’s acumen, adding 5 million shares to their collection in one fell swoop—holding a staggering 333% more shares.
AMD has garnered a die-hard following of disciples for its graphics processing units (GPUs), revered by gaming enthusiasts across the digital wasteland. In recent times, however, they’ve shifted their gaze toward the ever-expanding cosmos of cloud computing and artificial intelligence, championing the next chapter of technological progress.
Earlier this year, AMD unveiled the Ryzen 7040 mobile chip, a groundbreaking invention for laptops, boasting an onboard AI engine—unprecedented for the world of CPUs. As if anticipating the insatiable appetite for innovation, AMD plans to expand their AI microchip armada with the MI300—a powerhouse accelerated processing unit (APU) fusing the prowess of a CPU with integrated graphics.
Per AMD CEO Lisa Su, this trailblazing semiconductor will revolutionize AI technology, simultaneously reducing training periods for these sentient systems. A momentous achievement after a banner year in 2022, with revenues soaring 44%. Notably, there was a 25% decline in adjusted profits as AMD funneled resources into research and development to capitalize on data center transformation and the irresistible allure of AI adoption.
Griffin, no doubt a shrewd observer of the unfolding cyber saga, located an AMD stock trading at just five times the following year’s sales, a valuation not seen since the era before the global pandemic cast its shadow over humanity. The Wall Street legend couldn’t pass up the opportunity to snatch up AMD’s siren call at such a tantalizing price.
From the innovative prowess of Alphabet’s AI undertakings to the groundbreaking potential of AMD’s next-gen processors, investing virtuosos are staking their claims in the unfolding artificial intelligence narrative, marking the dawn of a new era for our collective future. The cyber world shies from stagnation as the relentless march of technological progress proceeds with an unwavering resolve.
For those drawn to the pulsing neon of the AI realm, 2023 presents a uniquely enticing period. Investors, whether billionaires, hedge fund maestros, or average denizens of the financial world, are presented with a rare opportunity to partake in the ongoing journey of technological leaps and bounds.
It’s crucial to consider not only monumental developments in the field of AI, but also the underlying potential offered by an array of emerging companies. Those who wait may be left mourning missed opportunities—strike now, and the promise of a cyberpunk-flavored future is dazzling in both its fortune and tech, sparkling with the greatest convergence of technological innovation humankind has ever witnessed.
So strap on your neural jack, inhabit the vast array of virtual landscapes, and seize that AI-backed digital venture. Become architects of the future as you stake your claims in these transformative stocks, boldly asserting your participation in the world of tomorrow. The time is now—enter the limitless realm of AI and the immersive opportunities that lie within its digital, neon-hued embrace.