As AI News Bolsters Tech ‘Building Blocks’ Stocks, Seasoned Investors Forecast Another Lucrative Area to Thrive Alongside Nvidia.

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  • Nvidia’s projected high revenue, along with other tech giants, is driving the tech market, despite the Dow’s struggles with debt. Inge Heydorn and Jenny Hardy of GP Bullhound Global Technology Fund advise careful investment in tech companies with high valuations in some areas, and suggest investing in companies that will continue to drive earnings for semiconductor companies that go into training servers and inference servers.
  • Heydorn and Hardy believe that investment in semiconductor companies involved in the training and inference servers, as well as the semiconductor capital equipment industry, will be more resilient amid the high valuations in some parts of the tech industry and will benefit from the AI craze, which is driven by long-term secular themes.
  • Among the tech companies that Heydorn and Hardy hold in their portfolio are Nvidia, Advanced Micro Devices, Taiwan Semiconductor, Infineon, Cisco, NXP, Microsoft, ServiceNow, and Palo Alto. They also like other semiconductor capital equipment companies like KLA, Lam Research, ASML, and Applied Materials.

As the news of Nvidia’s artificial intelligence (AI) technology boosting its stock prices, veteran investors are predicting another area to benefit from the developing technology. From automotive to healthcare industries, AI technology has been enhancing operational efficiency and creating new opportunities for innovation.

With the increase in demand for AI technology, “building blocks” in the tech industry such as semiconductor companies and memory chip manufacturers are also expected to profit through their contribution to developing the technology.

Veteran investors are closely watching companies like Advanced Micro Devices (AMD), Micron Technology (MU), and Intel (INTC), as they play significant roles in the development of AI technology and are likely to receive an extra boost from the increased demand.

The enhanced capabilities of AI have been demonstrated across various industries, from autonomous vehicles that utilize sensor technology to smart medical devices that help doctors make more informed decisions. Companies that enable AI technology, such as those that produce chips and memory, will be critical in bringing these innovations to life.

Investors are keen on these companies as they offer an exciting opportunity for growth and long-term profitability. The rise of AI technology and its importance in society have brought forth many opportunities that investors are watching closely.

With that said, seasoned investors are urging caution as the stock market can be volatile and prone to swings. Nonetheless, the potential growth and steady demand for technology building blocks leave many believing in their long-term prospects.

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