AI Hamburgers Taste Better Than AI

I think my AI app is brain-dead... Lots of folks have been playing with the latest artificial-intelligence tools lately. One of my colleagues was thrilled to show me the decent answers he was getting from AI. [Chaikin PowerFeed]( AI Hamburgers Taste Better Than AI By Marc Gerstein, director of research, Chaikin Analytics I think my AI app is brain-dead... Lots of folks have been playing with the latest artificial-intelligence tools lately. One of my colleagues was thrilled to show me the decent answers he was getting from AI. So I asked his app about our Power Gauge. And things didn't go well. This should have been easy. Marc Chaikin has had information about the Power Gauge online for more than a decade now. And I was using an app with a rock-solid rating... 4.8 out of 5 stars from more than 41,000 users. This AI started with blandly accurate facts. I'll spare you the details... Suffice it to say, it felt like a psychic telling me I have dead relatives. Eventually, something suspicious caught my eye. So, I pounced. I asked if the Power Gauge considers dividend yield. The app said yes... and that this model "evaluates the sustainability of a company's dividend payments." It also discussed how the Power Gauge "accounts for potential changes to the dividend yield." That would be impressive, except for one thing... Our model doesn't consider dividend yield. And when I asked the app to list [the 20 Power Gauge factors]( it made 12 different errors. If you haven't had this experience yet... it's eye-opening. Unlike the crystal ball that its fans see, this AI app was more like your elderly uncle confidently passing along information that he doesn't actually understand. Now, that doesn't mean we can't admire AI or invest in it. But we need to be critical thinkers. Personally, while I might trust AI to handle a hamburger order, I wouldn't rely on it to answer life's questions... Recommended Links: [Here's What You Missed Last Night]( The world-renowned professor who called the 2008 and 2020 crashes months in advance says what's coming will impact 20x MORE money than the collapse of Silicon Valley Bank and First Republic Bank COMBINED. He's also gave away the name and ticker of a popular stock he believes could go BANKRUPT this summer. Don't wait, [click here for full details](. [Danger Ahead: Prepare Immediately]( The top 1% of Americans control more wealth today than at any moment in history. But new data from the Federal Reserve show it's about to get way worse. Don't get left behind – [here's what you need to do](. Wendy's (WEN) is taking the right approach. It wants to use Google Cloud's AI software to take drive-thru orders. It hopes this approach will speed up the lines, boost accuracy, and solve its difficulties in finding human labor. The company is starting with one test store near its headquarters. In this robot-run Wendy's, one human employee will make sure the AI is getting things right. For example, AI has to know that if the customer asks for a "large milkshake," it should translate that to Wendy's-speak – a "large Frosty." The employee will also jump in if a customer demands to talk to a human. Wendy's is managing expectations about this pilot program. It doesn't expect perfection. In 2022, this system got orders right only 79% of the time. Wendy's aims to match its rivals' 85%-plus accuracy rates. Notice how different all this is from so much of today's AI hype. Wendy's isn't looking for "golly gee whiz" reactions. It's not after linguistic, auditory, or visual stunts. It seeks commercial usefulness... and sets a low bar. Compare the Wendy's strategy with the AI-hype darlings... Alphabet (GOOGL), Meta Platforms (META), and Microsoft (MSFT). Now, you'll see that these companies score well in our Power Gauge rankings. But for them, AI is minuscule at best... and they're in the "golly gee whiz" side of the field. They'll retain or lose their Power Gauge stature based largely on things unrelated to AI. Their rank-and-file employees know this... And many are leaving to work at or fund AI startups. If you're interested in the AI trend, follow their lead... These startups are the companies that will turn AI from a "golly gee whiz" toy into something real and vital. And they'll make an incredible profit from it. It goes beyond replacing fast-food workers... AI will assume a role in lucrative fields like programming, chipmaking, and, to some extent, industrial automation. This lacks the warm-and-fuzzy feeling of AI-generated poetry or art, like you'll see in the headlines. But machines that think and communicate are already in widespread use. This trend will continue. The Power Gauge is "bullish" on the First Trust Nasdaq Artificial Intelligence and Robotics Fund (ROBT). [Chaikin PowerFeed] Its 108-stock portfolio is broadly diversified among AI enablers. ROBT's peer, the Global X Robotics & Artificial Intelligence Fund (BOTZ), also ranks "bullish." Still, ROBT is a more diversified fund... BOTZ has only 45 positions, and its top 10 stakes hog 65% of portfolio assets. Nvidia (NVDA) alone consumes 9.5%. Regardless, remember the realities of what we're dealing with today. AI is the most hyped topic investors have confronted since the bitcoin peak. But as of right now, it's not magic. And while folks enjoy toying with AI apps like the one that botched our Power Gauge factors, there isn't a clear business case for them. When you're choosing an AI investment, you want the companies in the ROBT fund – not the brain-dead apps that your friends idly play with. And personally, I'd rather eat an AI hamburger than trust AI to answer all of life's questions. Good investing, Marc Gerstein Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 -0.09% 10 15 5 S&P 500 +0.46% 145 276 77 Nasdaq +1.09% 51 39 10 Small Caps +0.51% 389 962 529 Bonds +0.97% Information Technology +1.22% 29 34 3 — According to the Chaikin Power Bar, Large Cap stocks are more Bullish than Small Cap stocks. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Information Technology +2.41% Real Estate +2.41% Discretionary +2.07% Utilities +1.90% Communication +0.89% Energy +0.46% Financial +0.34% Staples -0.09% Industrials -0.10% Materials -0.15% Health Care -0.51% * * * * Industry Focus Retail Services 12 52 24 Over the past 6 months, the Retail subsector (XRT) has underperformed the S&P 500 by -6.55%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #11 of 21 subsectors and has moved up 2 slots over the past week. Indicative Stocks [rating] EYE National Vision Hold [rating] QRTEA Qurate Retail, Inc. [rating] LESL Leslie's, Inc. * * * * Top Movers Gainers [rating] AKAM +8.44% [rating] ILMN +7.84% [rating] GOOGL +4.10% [rating] MPWR +3.64% [rating] AMZN +3.35% Losers [rating] NWL -4.80% [rating] CTLT -4.14% [rating] KEY -4.12% [rating] PARA -4.11% [rating] IFF -3.94% * * * * Earnings Report Reporting Today Rating Before Open After Close CRL, TPR GEN, NWSA PKI No earnings reporting today. Earnings Surprises [rating] RBLX Roblox Corporation Q1 $-0.44 Missed by $-0.05 [rating] STE STERIS plc Q4 $2.30 Beat by $0.15 [rating] TTD The Trade Desk, Inc. Q1 $0.38 Beat by $0.02 [rating] DIS The Walt Disney Company Q2 $0.93 Missed by $-0.01 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. 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