The recurring theme of artificial intelligence (AI) isn’t going away soon. Members of the Magnificent Seven, which include household big tech names, saw their earnings boosted along with rosier outlooks thanks to the inclusion of AI in their respective business operations.
The race to shore up AI technology among big tech names like Microsoft, Google, and Amazon has been akin to an arms race. That’s because each company is pouring an abundance of resources in developing their artificial intelligence capabilities. Now it’s almost perfunctory that to be competitive in the technological landscape, there needs to be some form of AI integrated into core operations. Microsoft is already seeing the byproduct of its move toward artificial intelligence with a better-than-expected earnings report recently.
“We’ve moved from talking about AI to applying AI at scale,” Microsoft CEO Satya Nadella said. “By infusing AI across every layer of our tech stack, we’re winning new customers and helping drive new benefits and productivity gains across every sector.”
Amazon was another big tech name with a positive earnings report. It included a promising outlook on future revenues due to developments in AI. The online retail giant plans to incorporate AI (dubbed as “Rufus”) into its shopping experience. It aims to assist customers across a multitude of product lines.
“Rufus is an expert shopping assistant trained on Amazon’s product catalog and information from across the web to answer customer questions on shopping needs, products, and comparisons, make recommendations based on this context, and facilitate product discovery in the same Amazon shopping experience customers use regularly,” the company said.
5 Ways to Trade AI
What traders can possibly take away from the latest big tech earnings results is that AI will continue to provide a bullish sentiment for certain Magnificent Seven members that are using its technological capabilities. Given this, traders can use leverage to take advantage of some single-stock exchange-traded funds (ETFs):
- Direxion Daily NVDA Bull 1.5X Shares (NVDU)
- Direxion Daily GOOGL Bull 1.5X Shares (GGLL)
- Direxion Daily AAPL Bull 1.5X (AAPU)
- Direxion Daily AMZN Bull 1.5X Shares (AMZU)
- Direxion Daily MSFT Bull 1.5X Shares (MSFU)
These single-stock ETFs give bullish traders an additional 50% leverage to maximize profit potential. They can be helpful during short-term moves when big corporate announcements or, as already mentioned, positive earnings reports bump up the respective stock’s price.
For more news, information, and analysis, visit the Leveraged & Inverse Channel.
