Trade Radar | AI Waves Are Still Heating Up, Are You Riding Them? 13 Consecutive Rallies In Tesla, What's Next?
Another Weekly Session with Loui, M+ Online Head of Research.
With the ongoing artificial intelligence trend remaining intact, we understand that more and more of corporations are riding the trend to incorporate some of these AI elements into their product lines.
New feature for Adobe. On a recent note, Adobe Inc has come up with a new but strong feature - “Generative Fill”, which can quickly create, add, remove, or replace images right in Adobe Photoshop with simple text prompts powered by Adobe Firefly generative AI. It is definitely a game changer to how content or artwork is done. We think it may provide the edge for a normal user to produce high quality art pieces based on these text prompts.
Revenue and Earnings boost. Given the user range could widen to non-professionals and Adobe Inc is planning to sell subscriptions for its new AI services, that could provide new business avenues in the long run, which may translate to strong earnings momentum going forward.
Apple - Adobe crossover in the picture. Besides, we understand there is a collaboration with Apple after the Vision Pro launch in the recent Apple WWDC conference. Apple has announced that a version of Adobe Lightroom for the Vision Pro will be available. If the Vision Pro succeeds as Apple expects, additional Adobe products such as Photoshop and Premiere Pro will undoubtedly follow.
Ran ahead of the fundamentals? Meanwhile, the upcoming result will be released on 15th of June, which is likely to beat consensus, in our view. However, the share price has run ahead of the expected target price of USD407.52 (current price at USD479.53), pricing in the recent catalysts from the AI front and new subscription model as well as the collaboration with Apple, which means there is a likelihood that profit taking activities may emerge and pull back in the near future.
Tesla Inc - the future of Autonomous driving
13 consecutive rallies. Another company that has caught a lot of attention from the market will be Tesla Inc. It had rallied for the past 13 consecutive days before yesterday. Although it is an electric vehicle manufacturer, it is not lacking in AI and robotics elements within its vehicles.
AI system incorporated. According to Tesla, it has an AI system that gathers visual data in real-time from eight cameras in the car, and produces a 3D output that identifies the presence of obstacles, their motion, lanes, roads and traffic lights, and models a task that helps cars make decisions.
Specifications of the AI system. The company currently runs its AI system on 14,000 GPUs in its data center and can tap into 30 petabytes of video cache, which is growing to 200 petabytes. About 4,000 GPUs are used for auto-labeling and the remaining 10,000 are used for training.
Dojo System. The Dojo* system is based on the homegrown D1 chip, which delivers 22.6 teraflops of FP32 performance. It has 50 billion transistors and 10TBps of on-chip bandwidth and 4TBps off chip bandwidth.
*Dojo is a supercomputer designed by Tesla for computer vision video processing and recognition to train its machine learning models to assist its Autopilot advanced driver-assistance system.
Don’t be left out in this AI-wave journey, join the fun via M+ Global App!
Stocks mentioned in this article that investors could monitor:
| Ticker | Name |
| ADBE | Adobe Inc |
| TSLA | Tesla Inc |
| AAPL | Apple Inc |
For investors that prefer ETFs, you may monitor the following:
Ticker |
ETF |
| SOXL | Direxion Daily Semiconductor Bull 3X Shares |
| ROBO | Global X Robo Global Robotics & Automation ETF |
More about Loui:
Loui Low leads a team of analysts to perform equity and economic research and to provide investment advisory services to the organization's sales team, fund manager and retail fraternity. He has more than 10 years of experience in the stockbroking industry.
He graduated with a Bachelor of Science in Statistics from University of Malaya. He also holds an STA Diploma and is a member of the Society of Technical Analysts (MSTA) United Kingdom.
More about the Trade Radar:
Trade Radar is a weekly-updated section, featuring Loui's latest insights into market trends and hot topics. Traders may find some trading inspiration from Loui's views.
More Insights from Loui:
· Trade Radar | Apple WWDC 2023 Conference: 6 Metaverse-related Stocks You May Not Want to Miss