This article presents an overview of American Politicians are Buying These 5 AI Stocks. For a detailed overview of such stocks read our article, American Politicians are Buying These 10 AI Stocks.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Investors: 120
Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the stocks American politicians are buying. Congressman Josh Gottheimer from the Democratic Part bought shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) on March 18 worth between $1,000 to $15,000. Since then through April 22 Advanced Micro Devices, Inc. (NASDAQ:AMD) shares have declined by 20%.
American senator Markwayne Mullin earlier this year also bought Advanced Micro Devices, Inc. (NASDAQ:AMD) shares.
Meridian Contrarian Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth quarter 2023 investor letter:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor chip maker specializing in central processing units (CPUs), which are considered the core component of most computing devices, and graphics processing units (GPUs), which accelerate operations running on CPUs. We invested in 2018 when it was a mid-cap value stock plagued by many years of underperformance due to lagging technology and lost market hi share versus competitors Intel and Nvidia. Our research identified that changes and investments made by current management under CEO Lisa Su had, over several years, finally resulted in compelling technology that positioned AMD as a stronger competitor to Nvidia and that its latest products were superior to Intel’s. We invested on the the belief that AMD’s valuation at that that time did not reflect the potential for its technology leadership to generate significant market share gains and improved profits. This thesis has been playing out for several years. During the quarter, AMD unveiled more details about its upcoming GPU products for the AI market. The stock reacted positively to expectations that AMD’s GPU servers will be a viable alternative to Nvidia. Although we pared back our exposure to AMD into strength as part of our risk-management practice, we maintained a position in the stock. We believe AMD will continue to gain share in large and growing markets and is reasonably valued relative to the potential for significantly higher earnings.”
4. Apple Inc (NASDAQ:AAPL)
Number of Hedge Fund Investors: 131
Apple Inc (NASDAQ:AAPL) shares are falling as the company faces growth challenges when it comes to iPhone sales. While not a top AI stock for now, many analysts believe Apple Inc (NASDAQ:AAPL) would reveal its AI projects this year. Apple Inc (NASDAQ:AAPL) recently acquired French artificial intelligence startup Datakalab, according to a report from French news outlet Challenges.
While Apple Inc (NASDAQ:AAPL) has seen heavy selling from American Congress members recently, the stock was bought by some politicians in early 2024. For example, Congressman Pete Sessions on February 29 bought just $360 worth of Apple Inc (NASDAQ:AAPL) shares. On January 10 Senator Tommy Tuberville bought Apple Inc (NASDAQ:AAPL) shares worth between $1,000 to $15,000. Since then the stock is down 10%.
Ithaka US Growth Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its first quarter 2024 investor letter:
“Apple Inc. (NASDAQ:AAPL) is a global consumer electronics and software company that designs and markets mobile communications devices (iPhones), personal computers (Macs), multi-purpose tablets (iPads), and wearables (Apple Watch, AirPods, and Accessories). The company also sells several high-margin consumer services including Advertising, AppleCare, Cloud Services, Digital Content and Payment Services. The stock’s underperformance during the quarter was due to fears that the company’s slowing top-line growth and increased competitive threats make the stock’s premium valuation harder to justify.”
3. NVIDIA Corp (NASDAQ:NVDA)
Number of Hedge Fund Investors: 173
No list if AI stocks could be complete without NVIDIA Corp (NASDAQ:NVDA), the leader in the AI chips market and a poster child of the AI-led stock rally that has stunned investors worldwide. American Senator Thomas R. Carper on March 7 bought a stake in NVIDIA Corp (NASDAQ:NVDA) worth between $1,000 to $15,000. Since March 7 through April 22 NVIDIA Corp (NASDAQ:NVDA) shares have fallen by 11%.
Patient Capital Opportunity Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its first quarter 2024 investor letter:
“This quarter we entered two new positions, while exiting four positions. Our first new position was NVIDIA Corporation (NASDAQ:NVDA), which we bought early in the quarter. Nvidia is the market leader in designing and selling Graphics Processing Units (GPU), which has recently benefited from the insatiable demand of artificial intelligence (AI) models. The company currently captures 92% market share of data center GPUs and grew revenue, earnings and FCF an astounding 126%, 392%, and 610%, respectively, over the last year. While much of the focus is on Nvidia’s market cap reaching $2.3T, up 230% over the last year, the company’s valuation has actually come down over that period. As of 3/31/23, consensus was valuing the company at 61x forward EPS. This compares to today, where the company is being valued at 37x. While yes, we have never seen a company expand their market cap by so much so quickly, we have also never seen a company grow their fundamental earnings and cash generation so quickly (and which is actually expanding faster than valuation). While competitors are working to enter the GPU space, Nvidia has created a moat around their GPUs with their CUDA software offering. While we do expect the large cloud players to continue to move into the market, we think NVDA can continue to demand top market share. With leading edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of accelerated computing and artificial intelligence (AI).
Nvidia Corp. (NVDA) was a top performer in the quarter gaining 82.5% in the period. While the company has had an impressive run, gaining 242% over the last year, the valuation has been supported by the impressive growth in Revenue (126%), EPS (392%) and free cash flow (610%) over the last year. The company has solidified its position in the GPU space supported by its proprietary software CUDA. While we expect competition to increase, we think NVDA can continue to maintain top market share. With leading edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of artificial intelligence (AI).”
2. Amazon.com Inc (NASDAQ:AMZN)
Number of Hedge Fund Investors: 293
Amazon.com Inc (NASDAQ:AMZN) is one of the favorite AI stocks of the Wall Street, as Amazon Web Services offers software and Cloud infrastructure for companies to develop and deploy AI applications. American politicians are also buying this AI stock. Republican Congressman Brian Mast on March 4 bought just $350 worth of shares in Amazon.com Inc (NASDAQ:AMZN). Congressman Earl Blumenauer had piled into Amazon.com Inc (NASDAQ:AMZN) as he bought a stake worth about $15,000 to $50,000 in Amazon.com Inc (NASDAQ:AMZN) on February 12. Since then the stock is up over 4%.
Ithaka US Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its first quarter 2024 investor letter:
“Founded in 1994, Amazon.com, Inc. (NASDAQ:AMZN) has evolved from its early roots as an online bookstore to become one of the world’s largest eCommerce retailers. At the end of 2022 Amazon stood poised to capture ~40% of all US e-commerce sales, representing five times more share than the next closest competitor. In addition to eCommerce, Amazon Web Services (“AWS”) has become the market leader in outsourced cloud infrastructure. Further, Amazon Advertising is garnering significant share in digital advertising, particularly product placement ads, thanks to consumers beginning their product searches on Amazon’s site. Amazon’s stock appreciated on the back of stabilization of the company’s cloud computing segment and increased confidence the company would be able to contain expenses and push operating margins above prior peaks in the near-to-medium term.”
1. Microsoft Corp (NASDAQ:MSFT)
Number of Hedge Fund Investors: 302
Microsoft Corp (NASDAQ:MSFT) is one of the no-brainer AI stocks to invest in.
Microsoft Corp (NASDAQ:MSFT) is the most popular stock among the 933 hedge funds tracked by Insider Monkey as 302 hedge funds had stakes in Microsoft Corp (NASDAQ:MSFT) as of the end of 2023. Congressman Josh Gottheimer on February 13 bought a stake in Microsoft Corp (NASDAQ:MSFT) worth anywhere between $500,000 and $1 million. Since then the stock is up just 0.3%. Republican Congressman Pete Sessions on February 7 also bought a stake in Microsoft Corp (NASDAQ:MSFT).
Ithaka US Growth Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its first quarter 2024 investor letter:
“Microsoft Corporation (NASDAQ:MSFT) builds best-in-class platforms and provides services that help drive small business productivity, large business competitiveness, and public-sector efficiency. Microsoft’s products include operating systems, cross-device productivity applications, server applications, software development tools, video games, and business-solution applications. The company also designs, manufactures, and sells devices, including PCs, tablets, and gaming/entertainment consoles that all integrate with Azure, its cloud computing service. In the quarter Microsoft’s stock appreciated based on excitement surrounding the company’s positioning in the generative AI market and its ability to monetize the coming wave of corporate investment in supercomputing and AI, which will be through both Azure and Microsoft Copilot, the company’s new GenAI personal assistant.”
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