The AI Investing Pulse

April 24th, 2025

In this Week’s Edition:

1. Analysis - Is the Market Correction Over - Or Set to Resume?

2. Stock Ideas - 4 Resilient China Tech Stocks

3. News - Google Price Target Trimmed

4. Startups - Ex-Meta engineer raises $14M for Lace

5. Trends - Is DeepSeek's Threat Overrated?

6. Other News - From Generative to Agentic: A Comparative Analysis

Is the Market Correction Over - Or Set to Resume?

The recent wobble in global equities appears to be easing. A few strong sessions have restored some confidence, prompting the key question: Is the correction behind us, or is this just a pause before another downturn?

This week, we examine that question through three distinct lenses, drawing on both technical and fundamental perspectives from Investor’s Business Daily, Interactive Brokers, and Barron’s.

📈 Technical Signals Offer Hope

There are genuine signs of recovery from a technical standpoint. The S&P 500 found support near the 5,000 level, a psychologically important marker that aligns with its 100-day moving average. As noted in Barron’s, this convergence isn't just symbolic; it often serves as a zone where institutional buyers step in.

More significantly, both the Nasdaq and the S&P 500 registered confirmed "follow-through days" a signal that Investor’s Business Daily considers a reliable marker of a new uptrend. While not infallible, this pattern suggests that the recent wave of selling may have run its course.

⚠️ Caution: Underlying Risks Persist

While technical indicators have shown signs of improvement, the broader macroeconomic outlook remains clouded by uncertainty. Persistent inflation has tempered expectations for rate cuts in 2024, with recent data pointing to the possibility that the Federal Reserve may need to maintain higher interest rates for longer than previously anticipated.

The Fed is now walking a fine line: aiming to bring inflation under control without stalling economic growth. That delicate balance is keeping investors cautious and markets sensitive to any shift in tone or policy direction.

💼 Earnings Season: Make or Break

With technical indicators showing improvement, market attention is now firmly on fundamentals, and this earnings season could be pivotal for the recent rebound. The spotlight is on big tech, where forward guidance may carry as much weight as headline results. As Interactive Brokers points out, many stocks, especially in AI and tech, remain priced for perfection, leaving little margin for disappointment.

Today (April 24), Alphabet $GOOGL ( ▼ 0.28% ) and Intel $INTC ( ▼ 0.83% ) are in the spotlight. Investors will be watching closely for updates on AI infrastructure investment, cloud growth, and chip demand. Intel, in particular, faces heightened scrutiny as it works to assert its relevance in an increasingly competitive AI semiconductor landscape.

Next week brings a wave of results from Microsoft, Meta, Apple, and Amazon, each a major force within the AI ecosystem. From Azure and AWS to AI-powered advertising and on-device intelligence, these updates will offer critical insight into how AI ambitions are beginning to translate into real revenue.

💡 So, is the Correction Over?

Technically, the market is flashing early signs of strength. Fundamentally, the jury’s still out. Inflation, earnings, geopolitics, and monetary policy all continue to cast uncertainty over the outlook. If corporate results hold up and the Federal Reserve stays the course without a sharp policy shift, this recent volatility may prove to be just a correction rather than the beginning of something more serious.

_{Disclaimer - This content is provided for informational purposes only and does not constitute investment advice, personal recommendations, or an invitation to engage in any investment activity. The information presented is derived from publicly available sources and should not be solely relied upon for making investment decisions. Always consult with a qualified financial professional before making investment choices. Past performance is not a guide to future performance.}

TOP AI STOCKS

TOP AI ETFs

AI STOCKS IDEAS 

4 Resilient China Tech Stocks - Yahoo Finance

Nvidia Stock Predictions for 2025 - 24/7 Wallst

2 Leading AI Stocks to Watch - msn

AI STOCKS & ETFs NEWS 

Google Price Target Trimmed - Yahoo Finance - Recent analyst updates to Alphabet Inc.’s price targets reflect a reassessment of its growth outlook, weighing strong potential in advertising and cloud services. 

AI Investors Should Broaden Out to Power and Cooling Stocks 🎦 - msn - Bernstein's Roosevelt Bowman advises AI investors to diversify their portfolios beyond semiconductors and cloud computing.

Broadcom (AVGO) Unveils New AI Innovations in Chip Technology - Yahoo Finance - Broadcom has launched an advanced switch chip featuring an on-chip neural network, driving AI-related revenue growth through strategic partnerships.

AI STARTUPS

Ex-Meta engineer raises $14M, an AI-powered revenue generation software startup - TechCrunch -  Lace AI, co-founded by ex-Meta engineer Boris Valkov, secured $14 million to enhance revenue for home service companies through AI-driven insights and call analysis.

KPMG Survey Reveals Focus on AI in Private Market Investment  - Yahoo Finance - A recent KPMG survey indicates a significant shift towards AI and generative technologies in private equity.

Mechanize AI Automation and the Global Workforce - eWEEK -  Mechanize, a startup by Tamay Besiroglu, aims to automate white-collar jobs, potentially displacing millions of workers as AI technology advances.

AI TRENDS

Is DeepSeek's Threat Overrated?  - Benzinga - DeepSeek R1 exhibits critical security vulnerabilities, raising concerns about its 100% attack success rate. Opinions are divided on its efficiency versus inherent risks.

How Investors can Profit from AI's Energy Use - Kiplinger - AI's rising energy demands present investment opportunities in energy production and technology.

UBS sees Cloud Stock growth Slowing, AI Spending Strong - Investing.com - UBS predicts robust growth in AI investments, forecasting nearly $500 billion in spending by 2026, while big tech firms are expected to significantly increase capital expenditures driven by AI.

OTHER

From Generative to Agentic: A Comparative Analysis of AI Models - Wire19 - The analysis contrasts generative AI, which creates content, with agentic AI, focused on autonomous decision-making and task execution.

Google Launches Veo 2 AI Video Generation Tool Whisk - SocialMediaToday - Google has unveiled Veo 2, a powerful AI video generation tool capable of creating 4K videos and simulating realistic motion.

_{Disclaimer - The information contained on this newsletter does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice. Data sources: S&P Global Market Intelligence}