Potential Congressional AI Spending Lifts Several Portfolio Names
Plus, we recap Google's I/O event, which strongly emphasized AI.
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* Our AI-related plays get a boost from potential Congressional spending on AI.
* Google’s I/O event should address any lingering concerns about the company’s AI position.
We are seeing our shares of Nvidia NVDA, Marvell MRVL, Qualcomm QCOM, Microsoft MSFT and Alphabet (GOOGL) outpace the market’s gains today.
Powering them higher are the market’s rising hopium for a Fed rate cut, but also reports that a bipartisan group of four U.S. senators, led by majority leader Chuck Schumer, have called for at least $32 billion in Congress spending on artificial intelligence over the next three years to “harness the opportunities and address the risks” associated with the technology.
The report recommends "emergency" spending legislation to boost U.S. AI investments, particularly in new R&D and testing standards. It also recommends new requirements for transparency in AI products, and studies into their potential impact on the U.S. workforce.
While this is making headlines as the four senators pitch their recommendations to Senate committees, we’ll want to follow developments as they weave through Washington. Stepping back, we see this as part of the developing sovereign AI arms race that is a part of overall AI spending.
Recapping Google’s I/O Event
Sticking with the topic of AI, during yesterday’s Google I/O event, the company mentioned it 121 times during the event's 110 minutes. If there were any lingering questions about Google embracing AI across its various products and services, the I/O event should lay them to rest.
We continue to see Google’s AI competitive position bolstered by its user and data library associated with its Search, YouTube, and other businesses, leading to a more natural, personal, and useful search experience.
During the I/O event, the company made several announcements during the event, including Google introducing a new AI model to its lineup: Gemini 1.5 Flash. The new multimodal model is just as powerful as Gemini 1.5 Pro, but it’s optimized for “narrow, high-frequency, low-latency tasks.”
Google also introduced Project Astra, a multimodal AI assistant it hopes will become a do-everything virtual assistant that can watch and understand what it sees through your device’s camera, remember where your things are, and do things for you.
Google also announced that it is adding Gemini Nano, the lightweight version of its Gemini model, to Chrome on desktop. With Android, Google shared Gemini will soon be able to let users ask questions about videos on-screen, and it will answer based on automatic captions. Other multimodal updates for Gemini on Android were teased suggesting more features will be coming in the next few months.
At the time of publication, TheStreet Pro Portfolio was long NVDA, MRVL, QCOM, MSFT, GOOGL.
