Kim Bolton, president and portfolio manager of BlackSwan Dexteritas
FOCUS: technology stocks
Top Picks: Microsoft, Meta Platforms, CyberArk Software
MARKET OUTLOOK:
The promise of generative AI technology to transform companies, industries, and societies continues to be touted. This is leading tech giants, tech end-users, and utilities to spend an estimated $1 trillion on capex by 2030, including significant investments in data centres, chips, other AI infrastructure, and the power grid.
Your BlackSwan Dexteritas [BSD] team would like to share with you the next key areas of development in generative AI that are worthy of investing in:
- Improved model training which will enhance the efficiency and effectiveness of training models, including utilizing larger datasets and advanced techniques like “few-shot” or “zero-shot” learning.
- Creating more interactive and personalized experiences, allowing users to engage with gen AI in real-time and tailor outputs to their preferences.
- Developing models that can seamlessly integrate and generate across different modalities, such as text, images, audio, and video.
- Focusing on specialized applications in fields like healthcare, education, and entertainment where generative AI can provide significant benefits.
- Enhancing collaboration between AI and humans, where AI serves as an assistant that augments human creativity and decision-making. Concurrently, participants will be forced to act responsibly, make AI tools that are scalable and accessible to a broader audience, adapt evolving regulations and ensure compliance with data privacy laws and intellectual property rights.
Your BSD team encourages viewers to inquire about those companies that we see are leading the way in these key areas of generative AI development. While the market searches for the next fundamental catalyst or technical signal, your BSD Global Tech Hedge Fund and Separately Managed Accounts will continue to trim those securities that are achieving their respective intrinsic values, and buy those technology stocks that exhibit longer, more lucrative investment runways. The hedging overlay will always be an important tool to protect your capital in bearish markets, and also an important tool to be “dialled down” in bullish markets.
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TOP PICKS:
Microsoft is an American technology company which operates globally and through various verticals, including a productivity and business processes segment, an intelligent cloud segment, and a personal computing segment.
The Maia 100 AI chip is likely the one developed under the code-name “Athena,” a project rumoured for over a year. The Maia 100 has been tested with GPT 3.5 and is currently powering the AI copilot in GitHub. Microsoft announced new multi-billion-dollar investment in ChatGPT-maker OpenAI.
Meta Platforms Inc. offers a diverse range of products. Its social media and communication services include Facebook, Messenger, Instagram, WhatsApp, and Threads, which connect billions of users worldwide. In the virtual and augmented reality space, Meta provides Meta QuestVR headsets, the Meta Horizon VR platform, and Ray-Ban Stories smart glasses.It is also advancing in artificial intelligence with Meta AI powered by Llama3, enhancing user interactions and platform capabilities. Additionally, Meta offers smart devices like Portal for video calling and Workplace for enterprise communication.
Meta primarily operates in the digital advertising market, leveraging user data to provide targeted ads across its platforms. It is a key player in the virtual reality market through its MetaQuest products and Horizon platform, aiming to expand VR’s role in entertainment and business. Meta also invests heavily in artificial intelligence, developing advanced AI models and applications. Additionally, it competes in the smart device market with products like Portal and Ray-Ban Stories, and offers enterprise solutions with Workplace for professional communication and collaboration.
CyberArk Software(CYBR NASD)
CYBR is the category leader in the privilege access management segment of security(PAM). Due to recent privilege breaches in the past few years breaches are inherently becoming a threat to businesses as companies acquire more sensitive customer data, positioning PAM well for growth.
It has four main business segments, identity security, workforce identity, customer identity, and secrets management.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| MSFT NASD | Y | Y | Y |
| META NASD | Y | Y | Y |
| CYBR NASD | Y | N | Y |
PAST PICKS: AUGUST 15, 2023
Advanced Micro Devices (AMD NASD)
- Then: US$111.35
- Now: US$146.73
- Return:32%
- Total Return: 32%
ServiceNow (NOWNYSE)
- Then: US$559.60
- Now: US$824.84
- Return:47%
- Total Return: 47%
Datadog(DDOGNASD)
- Then: US$88.52
- Now: US$113.89
- Return:29%
- Total Return: 29%
Total Return Average: 36%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| AMD NASD | Y | N | Y |
| NOW NYSE | Y | Y | Y |
| DDOG NASD | Y | Y | Y |
