AI Stocks to Watch: Nvidia, Microsoft, and the Future of Search

Summary

Market Mondays: AI Stocks to Watch – Nvidia, Microsoft, and the Future of Search
Released on May 14, 2025

Host: EYL Network
Hosts: Earn Your Leisure and Stock Market Expert Ian Dunlap

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Introduction

In the May 14, 2025 episode of Market Mondays, hosted by Earn Your Leisure and stock market expert Ian Dunlap from the EYL Network, the conversation delves into the dynamic landscape of AI-driven stocks, with a particular focus on giants like Nvidia and Microsoft. The discussion also explores the transformative impact of AI on the search engine industry, challenging established players like Google.

Key AI Stocks to Watch

Nvidia’s Ascendancy in the AI Sector

The conversation begins with analysts highlighting the overarching upward trend in the stock market, particularly among tech companies. Analyst 1 notes, “[00:58] ... a lot of the tech companies are up. A lot of people think that, you know, Nvidia is going to benefit a lot from for sure.” This sentiment is echoed by Analyst 2, who underscores Nvidia's pivotal role in the AI revolution.

Microsoft’s Strategic Positioning

Analyst 2 emphasizes the importance of investing in companies resilient to macroeconomic fluctuations, naming Microsoft alongside Nvidia as top contenders. “[01:05] ... you have to pick companies, assets and investments that are going to do well regardless of what the macroeconomic environment are doing. So Microsoft, Nvidia...” Microsoft’s strategic investments and partnerships, particularly with OpenAI, position it favorably in the AI-driven market.

Broadcom and Semiconductors

Analyst 3 adds to the discussion by mentioning Broadcom and TSM as significant players in the semiconductor space, stating, “[02:28] ... Broadcom and we've seen it over the past year, six months that has just performed just handsomely over the past six months.” The robust performance of semiconductor stocks reinforces the sector's critical role in supporting AI technologies.

The Future of Search: AI vs. Traditional Search Engines

Decline of Google’s Dominance

A significant portion of the episode addresses the impact of AI on traditional search engines, with Analyst 1 boldly stating, “[03:19] ... For the first time in 20 years, search queries were down because of chat GPT.” This marks a pivotal shift in how users interact with information online, potentially diminishing Google's long-held dominance.

ChatGPT as the New Search Engine

The analysts delve deeper into how AI models like ChatGPT are revolutionizing search functionalities. Analyst 1 asserts, “[03:38] ... I don’t use Google. I use chat GBT.” This transition is attributed to ChatGPT's ability to provide comprehensive and immediate responses, outpacing traditional search engines in efficiency and user satisfaction.

Analyst 3 further elaborates, “[05:02] ... Chat GBT has become Band Aid name recognition for the average everyday layman,” highlighting its widespread adoption and user-friendly capabilities. The discussion touches upon the versatility of ChatGPT, from generating real-time content to performing expert-level research, which traditional search engines like Google currently cannot match.

Competitive Landscape and Emerging Players

The conversation also covers emerging AI platforms and their competition with established entities. Analyst 2 mentions numerous AI competitors, including Anthropic and Meta AI’s Gemini, noting, “[04:27] ... Chat GBT anthropic. All these other ones.” The rapid development and deployment of these technologies indicate a fiercely competitive landscape.

Analyst 3 adds, “[06:34] ... Meta, voila, they're going to have the standalone app,” illustrating how companies are quickly adapting to the AI trend by launching dedicated applications to enhance user engagement and functionality.

OpenAI’s Evolution and Microsoft Partnership

Potential IPO and Corporate Dynamics

A significant portion of the discussion revolves around OpenAI's future, particularly its potential initial public offering (IPO) and the dynamics of its partnership with Microsoft. Analyst 2 speculates, “[02:24] ... this open AI going public thing is coming a lot faster than I thought it would,” suggesting an imminent shift in OpenAI's corporate structure.

Analyst 1 raises concerns about the relationship between Microsoft and OpenAI, stating, “[06:34] ... their relationship is not great with Open Air right now,” hinting at possible tensions that could influence future collaborations and investments.

Financial Implications for Investors

Despite potential partnerships tensions, Analyst 2 remains optimistic about Microsoft's investment in OpenAI, asserting, “[07:04] ... Microsoft is still going to benefit from being an investor in that platform.” This indicates that, regardless of internal dynamics, Microsoft's stake in AI advancements remains a valuable asset for investors.

Market Outlook and Strategic Investments

Resilience Amid Economic Fluctuations

Throughout the episode, the analysts consistently highlight the importance of investing in companies that demonstrate resilience and adaptability in the face of economic uncertainties. By focusing on tech giants and innovative firms leading the AI charge, investors can potentially secure robust returns irrespective of broader market conditions.

Diversification Across AI-Driven Sectors

The discussion also touches upon the benefits of diversifying investments across various AI-driven sectors, including semiconductors, software, and emerging AI platforms. This strategy not only mitigates risk but also positions investors to capitalize on multiple facets of the AI revolution.

Conclusion

The Market Mondays episode underscores the transformative power of AI in reshaping industries and influencing stock market dynamics. With Nvidia and Microsoft at the forefront, the AI sector presents lucrative opportunities for investors. Additionally, the disruption of traditional search engines by AI platforms like ChatGPT signals a significant shift in technology and consumer behavior. As OpenAI contemplates its next moves, the evolving partnership with Microsoft remains a focal point for market watchers.

Investors are encouraged to stay abreast of these developments, focusing on companies that are not only leading the AI charge but also demonstrating the ability to thrive amidst changing economic landscapes. The insights shared by the analysts provide a comprehensive roadmap for navigating the burgeoning AI-driven market.

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Notable Quotes:

• Analyst 1 [00:58]: “...a lot of the tech companies are up. A lot of people think that, you know, Nvidia is going to benefit a lot from for sure.”
• Analyst 2 [01:19]: “You have to pick companies, assets and investments that are going to do well regardless of what the macroeconomic environment are doing. So Microsoft, Nvidia...”
• Analyst 1 [03:19]: “For the first time in 20 years, search queries were down because of chat GPT.”
• Analyst 1 [05:02]: “Chat GBT has become Band Aid name recognition for the average everyday layman.”
• Analyst 2 [07:04]: “Microsoft is still going to benefit from being an investor in that platform.”

These insights encapsulate the core discussions of the episode, highlighting the potential and strategic importance of AI-focused investments.

Transcript

[Host]

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[Analyst 1]

What companies are going to benefit the most? Every company is up on the stock market today.

[Analyst 2]

Not Google.

[Analyst 1]

Well, not Netflix either. But most, most companies are up. So a lot of the tech companies are up. A lot of people think that, you know, Nvidia is going to benefit a lot from for sure. So we can start with Nvidia. But what companies are going to benefit the most?

[Analyst 2]

The ones I've been telling you about. That's why I'm toot my own horn lesson of the day. You have to pick companies, assets and investments that are going to do well regardless of what the macroeconomic environment are doing. So Microsoft, Nvidia, despite the route that they're having. Now we can talk about the good thing that he could be doing with the pharma price cut. Eli Lilly will be okay. Andrew when they go public, of course all the Vanguard main suite of products. But I think who will have the most benefit? I don't know when they'll set it, but this open AI going public thing is coming a lot faster than I thought it would. I thought it wouldn't happen to 28 and I'm hearing some rumblings they could go public next year. So Microsoft, Nvidia, Lily, Apple, if you want to be conservative. And Visa, if Visa had a select. I keep saying it. If they had an E line that did not go off the rails, Visa would be top three for me. B A. Okay.

[Analyst 3]

Visa is definitely in the portfolio for sure.

[Analyst 2]

Cooking?

[Analyst 3]

Yeah, just cooking up. It's interesting you brought up the, the open AI situation. There's some talks that Microsoft and open AI are renegotiating. They're coming to the table in the next few weeks to potentially renegotiate. Now what that means, who knows. But yeah, I think Microsoft for sure will be a winner. Obviously Nvidia, I think Broadcom and we've seen it over the past year, six months that has just performed just handsomely over the past six months. And definitely in the AI space when people were looking at Nvidia like, oh, it's overvalued. What will happen here? Some of these other companies, Broadcom being one tsm, another one for sure, hand over fist about that. So the semis for sure are looking great, but even the ETFs inside the semis.

[Analyst 2]

Right.

[Analyst 3]

Have even a little bit less exposure. And we spoke about a few of those a couple weeks ago. I think they're all going to benefit from it.

[Analyst 2]

Yeah. On the opposite note, not to be labeled as pointed by Google. For the first time in 20 years, search queries were down because of chat GPT. Just like when the knockout hasn't happened yet. But the first time Buster Douglas put hands on Mike and it was like.

[Analyst 1]

About this, that's what I said. Me, I said this. Me personally, I don't use Google. I use chat gbt.

[Analyst 2]

Facts and people crazy.

[Analyst 1]

It gives you. Because it's going to search Google anyway and it's going to search every other search engine possible. It gives you a more comprehensive answer in a short period of time. So yeah, yeah, I said that chat GBT will be. Chat GBT is a new Google X.

[Analyst 3]

Chiefs X. Jeeves is crazy.

[Analyst 1]

Why would you, why would. Who's who. Who goes to Google anymore? That's like last decade. Like everybody is going to use chat gbt.

[Analyst 2]

I didn't say it this time.

[Analyst 3]

Yeah, or maybe not. We'll see, we'll see. But it's the first time ever, so obviously somebody has gotten to that space. Chat GBT anthropic. All these other ones.

[Analyst 2]

Yeah.

[Analyst 3]

Xai which will be, you know, coming at us short time.

[Analyst 2]

But even on Twitter grock is pretty damn good. I'm not gonna lie.

[Analyst 3]

They all, they all came to space and then you get the lawsuit from the federal government where they don't want you to have a deal with Apple going forward. That doesn't help because that's, that's kind of your monopoly right there. If you can get inside of the phone that most people are using and be that search engine form, then you, you've got a monopoly open.

[Analyst 2]

AI ends up being a search engine for Apple.

[Analyst 3]

Their search business is over.

[Analyst 1]

Leads the race as far as these Chat bots are concerned AI. Yeah, there's a bunch of them. But Chat GBT has become Band Aid name recognition for the average everyday layman. That layman.

[Analyst 2]

And it's a better product.

[Analyst 3]

Yeah, they, they definitely. What are they doing? Over 100 million users a day.

[Analyst 2]

Some crazy number, some insane number.

[Analyst 1]

200Amonth now.

[Analyst 2]

Yeah. Again to a premium.

[Analyst 1]

Again they have premium product. 200amonth. That's a lot of money.

[Analyst 2]

Yeah. Or you can pay somebody 70 grand a year and get a better result or worse result. Yeah, trade off.

[Analyst 3]

Yeah, we gotta, we gotta. We're watching Google carefully and it's doing.

[Analyst 1]

Things that Google can't do.

[Analyst 3]

Who is Chat GBT in terms of what?

[Analyst 1]

Rendering real time renderings for you and, and making flyers for you on the spot. And I could do that on your phone. You can say, okay, make a flyer for Market Mondays. Go. You go to google.com on your phone. It's not gonna do that. Yeah, Chat GBT on your phone right now. You can do that right now on your phone.

[Analyst 2]

Expert level research. Yeah.

[Analyst 3]

And that, that was part of the issue we were saying a few weeks ago and when Meta said that they were going to release their own app. Right. Chat GBT has a standalone app, but these other ones, they don't have a standalone app outside of Cloth. I'm talking about Gemini, I'm talking about Meta AI. I mean two days after we said that, on Market Mondays, Meta, voila, they're going to have the standalone app. And so when you think about in terms of that, yeah, they understand what, what's at stake, they understand the competition, but we'll see how it plays out. Man, it's gonna be interesting.

[Analyst 1]

But it's also something to take into consideration as far as Microsoft. Kind of their relationship is not great with Open Air right now and they encouraging them to be a for profit company, which that was through Elon, that was what he wanted to do as far as break up their non profits, staking things of that nature. So Open AI is an interesting company within itself to see which direction they go in. If they stay under Microsoft's umbrella, if they have a lawsuit eventually with Microsoft, break that, break that partnership up, who knows?

[Analyst 2]

Either way they're going to pay that coin. You're not going to do to Satya what you did to Elon. It's not gonna happen. So whether they pay him in cash or considerations, cool. Microsoft is still going to benefit from being an investor in that platform. Yeah, they should be for profit and they should go public soon. Next year, probably fall.

[Analyst 3]

Yeah, they said that the board voted to keep it a non profit. We'll see how that goes over the next couple months. Yeah, yeah.

[Host]

Today's episode is sponsored by Smart Travel, a new podcast from NerdWallet. Smart travel doesn't just cover points and miles, they break down all the financial aspects of your trip, whether that's the best days to book, how to avoid hidden fees, or which fancy travel credit cards pay off and which ones are just an expensive flex. If you want your travel budget to work harder, then dive into the best deals, products, services and more with Smart Travel from NerdWallet. Wherever you get your podcasts.

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