2023 Theme: AI

Almost every year in the stock market has a "theme" for what sector or idea becomes to latest craze. In late 2020 it was Electric Vehicles, in 2018 it was blockchain, in 2017 it was pot stocks. Something going on in the culture primes traders' minds for this "thing" to be the hot item to invest in. Much Kool-Aid is drank as the trend progresses and any stock that is somehow related or can make a case that it is related bubbles and its share price gets frothy. Unfortunately all end the same way... in a crash... but not before having a meteoric rise.

I am always on the lookout for the theme of any given year. This year I believe it to be Artificial Intelligence (AI). The world is already amiable to narratives about AI being the next great big thing. ChatGPT hit the world and stole Google's thunder (and market cap). The January 2023 rise in equities was felt across the market but none so prominent as in stocks related to AI.

The chart I am using for this idea had quite the rise in January but has since pulled back to a 50% Retracement Level. Normally I prefer to stay away from stocks with long term charts such as the Weekly timeframe below but a chart such as this indicates a great deal of upside if it should get going.

Other stocks that are considered to have AI potential that traders should be looking at now:

TSLA
NVDA
MSFT
FSLY
AMZN
PLTR
CRWD
SNOW