Tech is the future of our economy, and the industry that has been outperforming everyone else. Companies like Apple and Facebook use cloud computing and artificial intelligence to their advantage. Cloud computing is the new buzz in the finance world because of the crazy profits from companies like (BOX), (WDAY), (VEEV), and especially Salesforce.com (CRM). Salesforce.com’s shares have risen over 30% this year-to-date and there’s a big and obvious reason why this is occurring. Cloud computing is a cheap and easy way to store your company’s data. Their consumer retention rate is 110%, this means that not only do their customers stay with them, but they also buy more products on top of it. Now even though it seems like a great investment, there’re some downsides. CRM has many competitors as mentioned earlier in this post, but what makes them stand out is their track record with customer relations.
Artificial Intelligence is the next generation of technology due to this new machine learning method called “Deep Learning.” This is when the computer learns from it’s mistakes and keeps on getting smarter and smarter, even passed the point of human intelligence. Now that you know that, you can obviously understand that there’s a massive value in this new learning method. Due to this massive value, there has been a high demand in semiconductors recently and there is potentially a lot more that could be needed. Micron (MU), is up over 40% year-to-date and their price is still a cheap stock according to it’s price ratios. It’s as simple as the demand is high and the supply is low for memory chips. Demand is rising because the arrival of new technologies like cloud computing, artificial intelligence has increased data production, creating unique memory needs.
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