How AI is Accelerating the Economy

Market Moves You Need to See How AI is Accelerating the Economy [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President How AI is Accelerating the Economy [How AI is Accelerating the Economy] Kevin Cook here, strategist for the TAZR Trader and Healthcare Innovators portfolios, opening Thursday's trading day for Kevin. This morning, investors and traders will be digesting the Initial Jobless Claims report ahead of Friday's big monthly Employment Situation report. The stock market continues to grab new highs despite no clear sign that the Fed will cut rates any time soon. So as inflation cools, the one economic data point that would almost assure monetary easing this year would be a weakening job market. Then investors will view rate cuts as very likely before and after the election. And then stocks will surge again as corporate borrowing costs drop and consumer balance sheets breathe a sigh of relief. The Tectonic Shift One of my favorite economic themes to discuss since 2017 is what I call the Tech Super Cycle where massive productivity is driven by the accelerated efficiency of semiconductors, software, and the automation they create. As Peter Diamandis described in his 2020 book The Future is Faster Than You Think, the synergies of converging technology platforms are transforming everything. Leading the charge of that revolution is NVIDIA and, as the stock surges this week to overtake the market cap of Apple, only the sky seems the limit. Which means many observers are calling this an "AI Bubble." But if you watched CEO Jensen Huang's most recent presentations at the Computex summit in Taiwan, you got to witness a clinic in the fundamentals of "accelerated" computing. In his keynote address, we saw a fresh look at how "Huang's Law" has launched exponentially above Moore's Law in terms of the speed, power, and efficiency of GPU-driven architectures. What some investors still miss is that NVIDIA has given massive "power tools" to industry, business, and scientific researchers. The true power and impact of accelerated computing is that enterprises can process the life-blood of their business, which is data, with nearly infinite variability. And this is what drives innovation. Plus, NVIDIA GPU systems actually lower costs and energy usage. Now throw in robotics and the ability to simulate any environment before building a single piece of hardware and you have the ingredients for incredible innovation in the next decade. The Pie Expands After NVIDIA earnings on May 22, I raised my target price for NVDA shares from $1200 to $1400. But I barely had time to absorb Jensen's keynote before Bank of America raised their PT to $1500. So it appears I'm no longer the most optimistic on the Street. But that won't last. And while a stock split theoretically doesn't make shares more valuable, it seems some additional fuel is being added to the NVIDIA oven ahead of next week's 10-for-1 slicing of the pizza. Provided you are a shareholder of record who owns common stock as of the close of the market today, you'll receive an additional nine shares of NVDA for every share you previously held. Assuming those shares open around $120 next week, I imagine lots of buyers still piling in. But your strategy should be to buy any dips back toward $100. I know I will be. See you there! [Kevin Matras - Signature] Kevin Cook Senior Stock Strategist, Zacks Investment Research Sponsor [Low-Priced Stocks with Sky-High Potential]( Zacks is now revealing its top stock recommendations priced under $10 per share. Each is a high-quality company with prospects for returns of up to 2X and more. While not all our picks are winners, recent recommendations have led investors to gains of +100.6%, +129.7% and even +263.2%. Strong earnings growth, plus other Zacks indicators, mark our rare Under $10 stocks for sustained growth. Look into them today, and then ride the potential profits high and long. [See Top Stocks Under $10 Now »]( Today's Top Research [How to Produce Weekly Income from Technology Stocks]( Tech stocks aren't generally known for their income-producing capabilities. But one simple option strategy has the power to deliver. [Read More »]( [Buy This Soaring Top-Ranked Stock Now for Incredible Value]( Stride, which landed a Zacks Rank #1 (Strong Buy), looks worth considering for many reasons, including its incredible value. [Read More »]( [Top Research Reports for Bank of America, AMD & Caterpillar]( This Research Daily features new research reports on 16 major stocks, including Bank of America Corporation (BAC), Advanced Micro Devices, Inc. (AMD), and Caterpillar Inc. (CAT). [Read More »]( [ETFs to Profit from the Weight Loss Drug Boom]( The market for GLP-1 drugs could soar to $130 billion by 2030. [Read More »]( [10 Principles to Fast-Track Profitable Investing]( Instead of "trial by fire," investors can circumvent years of frustration by understanding ten essential principles. [Read More »]( [What's Today's Top Rated Mutual Fund?]( Use the Zacks Mutual Fund Rank, a quantitative ratings system designed to help you find the best funds to beat the market. See which ones to buy, which to sell and track your favorite mutual fund family. [Get started now »]( [Bull of the Day: Tenet Healthcare Corp. (THC)]( Tenet's latest quarterly results brought post-earnings fireworks, with the company upping its FY24 outlook. [Read More »]( [New Zacks Strong Buys for June 6th]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( More Zacks Resources Mobile App Download our app for convenient on-the-go access to even more—daily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on Zacks.com. [Download our Zacks App for Apple iOS]( [Download our Zacks App for Android]( Zacks Members' Success Stories Visit [Success Stories]( to hear how Zacks research, tools and portfolios help our members outperform the market. Get all of our market insights and much more when you connect with us. [Visit Zacks on Facebook]( [Follow Zacks on Twitter]( [See Zacks videos on YouTube]( [Join Zacks on LinkedIn]( [Read Zacks Commentary on StockTwits]( This free resource is being sent by [Zacks.com](. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms of Service". [www.zacks.com/terms_of_service]( Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through May 6, 2024. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank #1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit [( for information about the performance numbers displayed above. Zacks Emails If you would prefer to not receive future profit-producing emails from [Zacks.com]( the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please [click here]( and confirm your request. If you have trouble with the unsubscribe link, please email support@zacks.com. Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606