A 2024 Tech Stock Forecast from Qraft Technologies
How can AI impact stock picks?
Weldon Rice
Weldon Rice, the Head of AI ETFs at Qraft Technologies, emphasizes that 2023 was a landmark year for AI-driven market strategies. But what does this mean for investments in big tech stocks in 2024?
“AI played a pivotal role in the markets in 2023, with Qraft’s AI choosing many companies leading the way in AI in its portfolios. With the S&P 500 closing at all-time highs at the end of the year, AI stocks look poised to do well this year.”
With that in mind, here is how Qraft sees companies poised to continue to ride the tailwinds of AI adoption.
Top Picks
“Apple, Google, Microsoft, Amazon, NVIDIA, and Meta all have the AI’s highest conviction, not only among AI stocks but among all stocks overall. This is unsurprising as all the companies either have the software capabilities and user base to commercialize AI or offer the chips necessary to run the models. Our AI may see both the market valuing these companies higher and the quality of their cashflows, making them an attractive pick in 2024”, Rice said.
Low Conviction
However, Qraft sees less conviction in stocks like Salesforce, Intel, Tesla, and Advanced Micro Devices:
“While these companies will undoubtedly play a role in the AI arms race, many have either part or much of their business outside of AI. For example, Advanced Micro Devices has around 51% of its revenue coming from personal computer chips rather than from chips made for AI models. Contrast that with NVIDIA, which gets around 80% of its revenue from chips for AI models, making it better positioned to take advantage of growth in AI use. The model focuses on the quality of earnings, making stocks like Tesla less attractive as its car orders can heavily impact earnings,” Rice said.
“Qraft leverages the power of AI to navigate the market actively. Our holdings are updated monthly, adjusting as the market changes. The above assets are the convictions from our flagship AI model that selects stocks for QRFT, the Qraft AI-enhanced Large Cap ETF, currently performing around 1.4% annually over the S&P 500 tracking ETF, SPY,” Rice added.