It’s time to pay attention to the “boys” of the AI ​​boom

Since the beginning of 2023, the AI ​​stock market has been dominated by the Magnificent 7 tech stocks of Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOGLE), Meta (THE TARGET), Amazon (AMZN), and adze (TSLA).

These seven stocks are up nearly 150% from the start of 2023 through the summer of 2024. The rest of the market—the “S&P 493,” as investors call it, which is S&P 500 less Mag 7 tech stocks – up just 20% over the same time frame.

But something has changed.

Those “other guys” are starting to develop.

Since the Fourth of July weekend about two months ago, the S&P 493 is up 5%, while Mag 7 tech stocks are down about 10%.

Is it just a coincidence? Or the start of a big change in the markets?

We believe it is the beginning of a big change in the markets.

The ‘other guys’ are catching up with the tech giants

The reality is that while Mag 7 tech stocks have had a huge head start in the AI ​​investment cycle due to their extensive resources and talent, the “other guys” are starting to catch up as they launch their own AI products and services.

For example, law enforcement technology solutions provider Axon (AXON) just launched a new AI product called Draft One, which uses AI to automatically write the first draft of police reports using footage from body cameras. The product is generating enormous early interest, reaching over $100 million in bookings in just three months.

This stock is up more than 60% in the past year.

Coding solution provider GitLab (GTLB), meanwhile, just reported stunning quarterly results in which revenue grew more than 30% year-over-year thanks to growing demand for its new AI coding assistant tool, GitLab Duo.

This stock is up over 30% in the past month.

middleman (IoT) – a company focused on driving digitization in physical industries like construction and manufacturing – also just reported stunning quarterly numbers, driven by healthy demand for its AI solutions. Revenues increased by almost 40%.

This stock is up nearly 250% over the past two years.

Organizational software provider Smartsheet (SMALL) just reported a 50% sequential increase in the number of users using its AI tools. Those 47,000 users using AI have collectively saved about a million hours from AI automations. As a result, revenues are increasing.

This stock is up 20% in the last two months.

monday.com (MNDY), Box (BOX), Intapp (first), Klaviyo (KVYO), AppLovin (app), Wix (WIX), and Fortinet (FTNT) are among other smaller tech stocks that have seen their results bolstered by new AI products and services. All their stocks did very well.

The list goes on and on.

Meanwhile, Nvidia (NVDA) the stock has fallen 20% in the past two months.

The baton is passed, if you will, in AI Boom.

The Final Word

The era of Mag 7 dominance in the “AI Era” is coming to an end.

A new era—where smaller AI stocks take the lead and shine brightly—is upon us.

In this new era, we were able to see many more individual stock opportunities than we saw in the era when there were only seven growth stocks.

It could be much more interesting.

And this new era could be accelerated by a major market event in less than two weeks.

That’s why… to be ready for this big market expansion… I’m hosting a important strategy session this Wednesday, September 11th at 8:00 PM EST… where I will reveal what I believe to be one of the best investment strategies to capitalize on this potential major market expansion.

Click here to reserve your spot for that strategy session now.

_{As of the date of publication, Luke Lango did not hold (either directly or indirectly) any position in the securities mentioned in this article.}

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