Continue Buying Big Tech On AI Play As Fed Set To Cut Rate Soon


Stocks Pick of The Week - Continue Buying Big Tech on AI Play As Fed Set To Cut Rate Soon
The US stock market soared to unprecedented heights as a slim majority of Fed officials stood firm on their projections to implement three interest rate cuts this year, despite recent inflation figures coming in stronger than expected.While the latest data failed to instill enough confidence among officials to initiate rate cuts, Powell maintained his stance that inflation would continue to decrease in the coming weeks. The projections unveiled on Wednesday remained largely unchanged from December, with most colleagues anticipating either two or three cuts throughout the year.Anticipation had been high among investors for the Fed to temper expectations of rate cuts, but they were met with a more optimistic outlook from policymakers. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all clinched record highs, marking the first time since November 2021, just before the Fed shifted towards a much tighter policy.Expectations for rate cuts by June surged to around 75% in futures markets later in the day, a notable increase from the roughly 50% earlier in the week, as reported by CME Group.
 Boeing: critical juncture with full of uncertainty Boeing finds itself navigating a critical juncture, with its current strategic realignment resembling a longer yet indispensable journey. Despite operating within a robust civil aviation market, the trajectory of Boeing’s shares appears to be confined to a range for the foreseeable future, primarily due to looming reputational and operational challenges in the short to medium term.In prioritizing compliance, safety, and quality assurance, Boeing is compelled to recalibrate its financial targets, which must now take a backseat. This shift underscores the company’s commitment to addressing pressing concerns regarding safety protocols and operational integrity.As evidenced by its performance within the S&P 500, Boeing ranks as one of the poorest performers, having incurred a substantial 28% loss this year. This downturn reflects the culmination of various safety issues and apprehensions that have cast a shadow over the company’s reputation and operational efficiency.In essence, Boeing’s current endeavors represent a concerted effort to navigate through turbulent waters, prioritizing foundational aspects of its business over short-term financial gains. While this approach may entail a longer route, it is deemed necessary to restore trust, ensure compliance, and uphold the highest standards of safety and quality within the aviation industry.
 Nvidia: Blackwell platformNvidia’s recent GTC Conference showcased the company’s unwavering confidence in its leadership position within the realm of accelerated computing, particularly in the domain of artificial intelligence, spanning computer, networking, and software. The introduction of Nvidia’s next-generation Blackwell platform for AI programs served as a reaffirmation of the company’s dominance, solidifying its position as a frontrunner across the entire computing spectrum.While the specifications and performance enhancements announced at the conference largely met the sky-high expectations of investors, Nvidia’s approach to innovation extends beyond mere product features. Instead, it encapsulates a comprehensive strategy wherein the company not only develops cutting-edge systems but also meticulously optimizes them for accelerated computing and AI applications. Subsequently, Nvidia strategically disassembles these systems to bring a diverse array of offerings to the market, showcasing its versatility and adaptability in catering to evolving industry needs.In essence, Nvidia’s commitment to innovation is underscored by its holistic approach to product development and market strategy. By consistently pushing the boundaries of technological advancement and staying ahead of the curve in AI and accelerated computing, Nvidia continues to cement its status as a trailblazer in the ever-evolving landscape of modern computing.
 Microsoft: Monetise the surge in artificial intelligenceMicrosoft is strategically positioned to capitalize on two primary avenues for companies to monetize the surge in artificial intelligence adoption within the current technology landscape.With its Azure cloud platform and the integration of copilots across Office and other product suites, Microsoft holds a dominant position in two out of the three key methods software vendors employ to monetize the AI trend.Microsoft stands to benefit from what is termed as “direct” and “meter” AI monetization strategies. The former involves charging direct fees for AI services, while the latter is based on volume or usage, often tied to storage requirements.Leveraging its extensive installed base, Microsoft has emerged as a frontrunner in both AI capabilities and monetization strategies. By seamlessly incorporating Office and Github Copilots into its product offerings, Microsoft not only enhances its AI capabilities but also establishes a tangible revenue stream, providing investors with a clear return on investment for their technology endeavors.More By This Author:Three Key Points To Trade In This Week’s FOMC Meeting
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