Introduction
The worldwide AI market is expected to grow at a 19% CAGR between now and 2026 reaching $900 billion by then, according to market research firm IDC and that has led to a surge in investments and acquisitions by US-based “Mega-Tech” giants such as Nvidia (NVDA), Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Microsoft (MSFT) and META (META) – the constituents in the munKNEE +$1T Market Cap Portfolio – to avoid falling behind in the generative AI boom.
There Is No AI Without Big Tech
Put bluntly, there is no AI without Big Tech. Almost every startup relies on the computing infrastructure of Microsoft, Amazon, and Google, in particular, to train their systems, and on those same firms’ vast consumer market reach to deploy and sell their AI products and, thanks to platform dominance and the self-reinforcing properties of the surveillance business model, they own and control the ingredients necessary to develop and deploy large-scale AI. They also shape the incentive structures for the field of research and development in AI, defining the technology’s present and future. (Source)
Big Tech AI/ML Acquisitions & Collaborations
10 “Big Tech” companies have acquired a total of more than 100 artificial intelligence (AI) and machine learning (ML) companies since 2017 according to a new PitchBook report (see here) and these acquisitions allow the Big Tech companies to:
In addition to acquisitions, strategic collaborations have also played a crucial role in Big Tech’s AI strategy with Amazon’s partnership with Anthropic, a leading AI research company, being a notable example. This collaboration highlights the importance of generative AI in shaping the future of technology. Companies are increasingly focusing on generative AI as a key area for innovation, with applications ranging from improving user experiences to creating new business models.
Summary
As AI continues to evolve, we can expect to see more acquisitions and strategic collaborations in this field. Companies that successfully integrate AI into their operations and products will likely maintain a competitive advantage, shaping the future of technology and influencing global economic trends.
The +$1T Mega Cap AI Portfolio
The stock price performances of the 6 constituents in the munKNEE +$1T Market Cap AI Portfolio are highlighted below for last week, in descending order, and YTD, along with their market capitalizations and any pertinent news, analyses or commentary on them.
- Market Capitalization: $3.12T
- Latest news, analyses or commentary:
- Nvidia Near All Time High Ahead Of Earnings; Is It A Buy Or Sell Now?
- Market Capitalization: $1.86T
- Latest news, analyses or commentary:
- Jeff Bezos Predicts That One Day Amazon Will Fail And Claims That Large Companies Only Last ’30-Plus Years’ – Guess How Old Amazon Is?
- Market Capitalization: $3.41T
- Latest news, analyses or commentary:
- Why Apple Is Plowing Billions Of Dollars Into A Project That Won’t Have A Payoff Near Term
- Market Capitalization: $3.11T
- Latest news, analyses or commentary:
- Return on Capital Shows A Bright Future For Microsoft
- Market Capitalization: $1,33T
- Latest news, analyses or commentary:
- Is Meta Platforms The Best Magnificent Seven Stock?
- Market Capitalization: $2.04T
- Latest news, analyses or commentary:
- Is Google Stock A Buy Amid 6-Week Skid? Here’s What Technical, Fundamental Factors Matter
- Should You Invest in Alphabet Ahead of the DOJ’s Next Moves?
FIGURE 2: Stock Chart (1-Year)
Source: S&P Capital IQ
Other Developments
Chipmaker Advanced Micro Devices (AMD) plans to buy computer hardware design firm ZT Systems for $4.9 billion in a move to better compete with artificial intelligence systems powerhouse Nvidia (NVDA). SourceMore By This Author:Micro/Small Cap AI Stocks Portfolio Down 4% Last Week
These 7 Semiconductor/AI-Related Portfolios Roared Back This Week; Up 9%, On Average
Canopy Growth Q1 Financials Show Major Reduction In Net Loss
