AI Demand Continues to Benefit Software Plays
The AI story continues. While many big-cap names are at all-time highs, other and smaller players are starting to show better signs of strength. Investors can likely see better returns going into 2025 with smaller-cap AI stocks. That’s especially true with software stocks. That’s because software companies tend to offer high profit margins. Once a piece of software is developed, the marginal cost of developing an additional copy is essentially zero. Software companies seeing strong demand from AI software can continue to ...
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This Hardware Trend Shows the AI Play Isn’t Over Yet
While chip stocks have slowed down in recent months, companies continue to invest billions in AI initiatives. That’s seen with a demand in new power sources, plans to build out data centers, and other hardware necessary to operate today’s AI programs. With focus moving away from the chipmakers, companies that offer other parts of the hardware ecosystem can still see growth in the years ahead. Particularly if they’re making breakthroughs that can further benefit the AI rollout. One such computer hardware play ...
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Slow and Steady Can Win the Investment Race
Investors often have a choice that breaks down between growth stocks and value plays. Right now, the soaring demand for AI technology is giving many slow-growth companies some unexpected kickers. That includes utilities, but can also include companies related to hardware, software, and connectivity. Investors can likely see above-average returns playing to this trend in the years ahead. And more old-school companies may offer consistent returns rather than the big jumps and drops of a growth play. For instance, telecom giantAT&T (T) ...
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Another Play on Today’s Strong Travel Trends
Consumers may be slowing on spending overall, but they continue to reach into their wallets to spend money on experiences such as travel and tourism. That bodes well for a number of subsectors of the market. That’s also why hotel, airlines, and other travel-related companies continue to fare well. But there’s another part of the market that could also see continued strength into next year. That market? The cruise liners. Thanks to strong booking demand and energy prices remaining lackluster over the ...
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Luxury Experiences Will Still Drive Consumers In 2025
Recent data suggests that there’s a global slowdown in spending on high-end luxury goods, such as handbags and clothing. However, that trend hasn’t yet worked its way to experiences for higher-income spenders. That, combined with strong travel trends as the holiday season kicks off, suggests that companies that cater to these experiences still have more room to run. And that today’s investors can likely see solid returns on these companies well into next year. For instance, hospitality data shows that travel and ...
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This Overlooked AI Play Could Be Ready to Deliver Big Returns Going Forward
The AI trend still has room to run. Companies continue to spend on developing AI programs, and hardware companies are rushing to meet the demand. So are power companies, given the high power requirements for AI programs. But except forApple (AAPL) creating a hybrid product for its iPhone, AI has yet to go fully mobile. It will take a new and ultra-advanced chip design to make that happen. One company can deliver on that concept. The player?Qualcomm (QCOM). Their chips are in ...
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Consumer Goods Could Lead Markets in 2025
The stock market continues to shift away from big gains in tech and towards other sectors. That’s a healthy sign that stocks can trend higher into next year. One underperforming sector has been consumer goods companies, thanks to the combination of surging inflation and consumer fears. But consumer confidence is soaring higher, and inflation has moderated over the past year. That’s allowing consumer goods companies to start moving towards a catch-up rally. One consumer goods player that looks attractive now isJ.M. Smucker ...
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Inexpensive and Unloved Brands Can Provide Investors Healthy Returns
With the holiday season underway, it won’t be long until consumers start to think about how much they ended up consuming during the holidays. And while gym memberships spike in early January only to fade out in a few weeks, spending on healthy food options tends to persist for much longer. Investors can play to that trend by owning shares of packaged food companies now, ahead of a move higher after the holidays. One play isTheSimply Good Foods Company (SMPL). They provide ...
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