Thursday, May 2, 2024

"Is Nvidia Really The King Of AI? Not In This Realm" (BAH)

There is a definitional problem with the term "AI stocks [or companies]" in that AI is a tool. Much as the (over) hyped nanotechnology revolution didn't produce "nanotech stocks" but instead became incorporated into processes and procedures that give companies employing same an incremental edge rather than epochal shifts.*

However, if there is an AI "company" Nvidia would deserve the moniker as much as anyone.

That's me, quoting myself from the introduction to a 2020 post, coincidentally also from IBD.

Here at Climateer Investing, We Recycle! From Investor's Business Daily, May 2:

When investors think of the giants of artificial intelligence, Magnificent Seven stocks like Nvidia (NVDA), Microsoft (MSFT) and Alphabet (GOOGL) or maybe Palantir Technologies (PLTR) come to mind. But defense, intelligence and civil management consultant Booz Allen Hamilton (BAH) wears the crown as the largest provider of AI to the federal government.

While Nvidia, Meta, Microsoft, Google and Palantir all made the latest list of new buys by the best mutual funds, Booz Allen Hamilton also secured a spot on the list.

Boosted by strong institutional demand and an A- Accumulation/Distribution Rating, BAH stock has now crafted a flat base with a 150.59 buy point. A breakout would propel the stock an all-time high.

Virginia-based Booz Allen Hamilton earns a 94 Composite Rating. The rating shows it is outpacing 94% of all stocks in terms of key stock-picking factors.

Booz Allen Hamilton Drives AI In Government
Across its three major business segments — defense, civil government and intelligence — Booz Allen Hamilton is leading the AI push throughout the federal government. Last year, the firm was recognized as the largest provider of AI-related services to the federal government by researcher GovWin from Deltek.

Booz Allen Hamilton works with the Defense Department to try and get ahead of adversaries in the global AI race. Collaborating with the Pentagon, it is working to integrate AI into all aspects of missions and operations. That includes training an AI-ready workforce and defining and building the related infrastructure.

In the civil government space, Booz Allen's work spans energy and the environment, financial services, health, homeland security, law enforcement, and transportation. The company deploys cognitive search algorithms and develops models to predict global health threats. It also leverages computer vision to identify suspicious packages.

In the intelligence arena, Booz Allen Hamiltion works across the federal government to harness AI to support intelligence analysts and improve decision-making.

Earnings Pop...


The introduction was so pleasingly apropos. Let's try recycling the outro from that 2020 post! (which itself was recycled from a post ten years earlier)

And from a December 2010 post: 
...The reason for highlighting nano is two-fold.

1) Since Feynman coined the word there has been a misconception among investors that there would be a nano-technology "industry". This has proven not to be the case and won't be in the future. Rather nano is a tool, an approach toward problem solving.

There will be some breakthroughs that make their discoverers instantly (after 10 years of research) wealthy but the real beneficiaries will be companies like Kyocera and 3M and Siemens. They will use the technology to do what they are already doing, just better, faster, cheaper, more.

2) In spite of the fact that there will be few pure plays we are convinced that nano combined with advances in materials science and manufacturing technology is what will spur the next secular bull market....
When it becomes ubiquitous, the distinctions blur, the drive for creativity recedes, stasis, then death.
Wait what? Entropy! I meant to co-opt the physically precise  concept of entropy to metaphorically describe the trend. Not death.
No, death bad, Sand Hill Road good.