Top AI Stocks to Watch in December
Top AI Stocks to Watch in December
By:Mike Butler
Rivals in the AI sector stand to benefits from the theatrics at OpenAI
- OpenAI CEO Sam Altman has been let go, and OpenAI employees are in revolt.
- Microsoft has swooped in and hired OpenAI founders Sam Atlman and Greg Brockman to lead a new artificial intelligence team.
- Nvidia is set to report earnings today, and they are one of the mega tech stocks that stand to benefit from the OpenAI fallout.
- Amazon is set to train 2 million employees in artificial intelligence skills.
- Google recently committed to investing up to $2 billion in Anthropic, an OpenAI competitor.
What you need to know about OpenAI
In a dramatic turn of events, OpenAI has parted ways with cofounders Sam Altman and Greg Brockman.
Their abrupt departure caused hundreds of employees—as well a former board member—to call for the rest of the board to step away from their duties unless both are reinstated.
Wow.
Just when you though the artificial Intelligence craze couldn't get any crazier, we get this popcorn-ready docudrama plot.
To compound matters, the board’s subsequent CEO search has felt like musical chairs as one candidate and then another were named to take the job in rapid succession.
The fallout couldn’t help damage the company’s reputation, and other major tech companies have taken notice and taken action. Firms exposed to the AI sector and ready to benefit include Amazon (AMZN), Google (GOOGL), Microsoft (MSFT) and Nvidia (NVDA).
Amazon and AI
Amazon is investing in its employees by launching a training regimen called "AI Ready.” The free course is free is an easy win for Amazon employees looking to make work redundancies more streamlined.
Amazon stock opened 2023 at $85.46 and is up over 68%, sitting around $143.
AMZN stock's expected move through 2023 based on current implied volatility (IV) is just over +-$8.80
Google and AI
While Microsoft is plotting to acquire OpenAI employees, Google is betting big on Anthropic—a direct artificial intelligence competitor to OpenAI. They've committed to an investment up to $2 billion
Anthropic created Claude 2, a chatbot rival to the popular ChatGPT offered by OpenAI.
This feels like Google is zigging when OpenAI is zagging, which could mean more AI marketshare for the former. The investment is said to be $500 million up front, with the possibility of $1.5 billion more down the road.
GOOGL stock opened the year at $89.58 and is up over 50%, sitting just over $136 currently.
The stock's expected move through the rest of the year is just over +-$6.50.
Microsoft and AI
So far, Microsoft is the direct beneficiary of the OpenAI shakeup It has already hired former CEO Sam Altman and former President Greg Brockman to lead a new AI team. It also stated that positions are available for anyone at OpenAI who wants to join the Microsoft team.
It’s looking to bolster its AI exposure, and the stock hit a new all time high of $378.87 on Tuesday Nov. 20.
MSFT stock opened the year at $243.08 and is up over 50% so far year-to-date (YTD), sitting at around $372.
The expected stock price move through the rest of 2023 based on current IV is just under +-$18.00.
Nvidia and AI
Nvidia will report earnings after the market closes today, and expectations are big for the tech giant. It has increased anticipated earnings-per-share (EPS) by over 50% from the previous quarter, and revenue expectations are also up almost 50% from the previous quarter.
Nvidia won’t benefit as much as some of its rivals from the OpenAI drama, but turbulence in the competition can't hurt the stock's upside. We'll soon get a clear picture when it reports quarterly earnings.
NVDA stock opened the year at $148.51 and is up over 235% so far YTD, sitting around $497.
The expected stock price move through the rest of the year based on current IV is just under +-$57.00.
Check out the Options Trading Concepts Live archive where Mike Butler explores earnings trades ahead of Nvidia's announcement!
Mike Butler, tastylive director of market intelligence, has been in the markets and trading for a decade. He appears on Options Trading Concepts Live, airing Monday-Friday. @tradermikeyb
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.