To The Moon

Wall Street's 'AI 30 ': Who's In, Who's Out?

Just before the Jackson Hole meeting, Meta unexpectedly announced a shift in its AI strategy, sparking risk-off sentiment in markets.

Still, Morgan Stanley is bullish on AI. The bank says AI could add $13 trillion to $16 trillion in value to the S&P 500, potentially lifting the index's market cap by as much as 29%.

Strategists also see big opportunities in new AI types: “agentic AI,” which makes decisions with less human input, could add $490 billion in value, while “embodied AI,” or humanoid robots, could contribute around $430 billion.

At the start of the year, Wedbush analyst Daniel Ives described the AI boom as the “fourth industrial revolution” and launched the firm's “AI 30” list of top players in the sector. Recently, Wedbush updated the list, adding four new companies while removing four others.

$CrowdStrike (CRWD.US)$ was added as a standout in AI-driven cybersecurity. Its Falcon platform uses machine learning to detect and stop cyber threats in real time, with a 98% customer retention rate. Wedbush highlights its expanding product modules and strong adoption of Charlotte AI as key growth drivers.

$Roblox (RBLX.US)$ also joined the list. The company reported over 100 million daily active users in Q2, a 41% year-over-year increase, with engagement time up 58%. Wedbush notes that AI-powered discovery features and popular games like Growa Garden are fueling growth. Shares have doubled this year as Roblox expands beyond gaming into social, events, and digital goods.

$GE Vernova (GEV.US)$, the energy technology company spun off from General Electric in 2024, has become a major beneficiary of surging electricity demand from data centers. Wedbush even calls it the “Nvidia of power equipment.” Strong Q2 results and a record backlog point to long-term growth, though analysts also caution about valuation risks.

$NEBIUS (NBIS.US)$, a newer name in AI infrastructure, was also added. Spun out of Yandex, NEBIUS is now one of Nvidia's largest GPU buyers and offers large-scale AI cloud and GPU rental services. Revenue grew more than sixfold year-over-year in Q2, and the company plans to double GPU capacity by 2025.

Meanwhile, four companies were removed from the list. $C3.ai (AI.US)$ was dropped due to slowing sales and leadership changes, though Wedbush remains positive on its long-term potential.

$CyberArk (CYBR.US)$ was excluded because of its pending $25B acquisition by Palo Alto Networks, which is already on the list.

$Adobe (ADBE.US)$ was cut as AI competition weighs on growth and cash flow.

$Elastic (ESTC.US)$ also exited due to slowing government demand and stronger alternatives within the AI space.

Overall, Wedbush says artificial intelligence remains one of the strongest forces driving U.S. stocks higher, potentially adding trillions of dollars in market value. Still, analysts warn that some AI names may be overheated despite the sector's explosive growth.

@TigerStars  @CaptainTiger  @TigerWire  @Daily_Discussion  @Tiger_chat  @Tiger_comments  @MillionaireTiger