From AI Hype To A New market High
Yesterday, The Market Ear wrote about how AI adoption could lead to a new market high:
Hey ChatGPT, how can AI get me to 5900 in SPX?
1. We believe the market is underestimating the productivity boost AI could deliver to a wide range of sectors
2. Blue sky scenario: rapid AI adoption could drive EPS CAGR of 7.5% over the next decade and justify S&P500 fair value of 5,900
It's worth reading the whole Market Ear report on AI at the link above, to get a sense of how that trajectory could play out, but sometimes a demonstration of a new AI capability illustrates the technology's potential in a way words and charts alone don't. Enter Suno, an AI music company based in Cambridge, MA.
Have Songs Written And Produced For You In Seconds
You pick the musical genre, include a few words as a prompt, and Suno creates songs for you. Here are a few examples I whipped up yesterday.
My Prompt:
A pop punk song about how hedging doesn't have to be a drag with Portfolio Armor, because of its security selection method picking recent winners like Super Micro Computer (SMCI) and Nvidia (NVDA).
Sonu's title, lyrics, and song:
Hedge Like A Rockstar
Lyrics:
[Verse] I'm tired of playing it safe, it's all become a drag
But then I found this method, the best I've ever had
Portfolio Armor, it knows what's gonna soar
Super Micro Computer and Nvidia, count 'em by the score
[Verse 2] No need ...