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R&A Studio

This article was published on Dividend Kings on Wednesday, June 7th.

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Artificial intelligence, or AI, has become the latest mania on Wall Street.

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Charlie Bilello

In May alone, AI stocks saw the kind of rally we

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Wide Moat Research

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Daily Shot

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Daily Shot

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Daily Shot

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NY Fed

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Daily Shot

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Ycharts

Bear Market Nvidia 60/40 S&P
2022 Stagflation -63% -21% -28%
Pandemic Crash -2% -13% -34%
2018 Recession Scare -52% -9% -21%
2011 Debt Ceiling Crisis -38% -16% -22%
Great Recession -79% -44% -58%
Tech Crash -87% -22% -50%
Average -54% -21% -34%
Median -58% -19% -31%

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FAST Graphs, FactSet

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Goldman Sachs

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Goldman Sachs

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Goldman Sachs

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Bloomberg

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Goldman Sachs

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Goldman Sachs

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Goldman Sachs

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Goldman Sachs

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Goldman Sachs

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Goldman Sachs

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Congressional Budget Office

Policy Potential GDP Growth Boost
Lead Removal 0.4%
Pro Fertility/Family Policy (2.7 children per family) 0.7%
Human Capital Investment 0.8%
Artificial Intelligence 1.5%
Infrastructure Repair 1.6%
Immigration (1900 to 1915 rate) 1.9%
R&D (1950’s rate) 2.5%
Infrastructure Improvement (Energy Transition) 2.6%
Long-Term Base-Case (Current Policies) 1.8%
Max American Economic Growth Potential 13.8%

Sources: Moody’s, Bloomberg, Federal Reserve, National Bureau Of Economic Research, National Institute Of Health, CDC, Goldman Sachs, ASCE

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Goldman Sachs

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Goldman Sachs

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Goldman Sachs

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FactSet Research Terminal

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FactSet Research Terminal

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Statista

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Daily Shot

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Statista

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OpenAI

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OpenAI

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OpenAI

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NYT

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Themisle

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Arstechnica

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digital trends

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FactSet, Fast Graphs

Metric Historical Fair Value Multiples (11-Years, Nadella Era, New Business Model) 2022 2023 2024 2025 2026

12-Month Forward Fair Value

Earnings 24.49 $227.27 $252.49 $290.45 $345.06 $389.88
Average $227.27 $252.49 $290.45 $345.06 $389.88 $269.28
Current Price $327.65

Discount To Fair Value

-44.17% -29.77% -12.81% 5.05% 15.96% -21.68%
Upside To Fair Value -30.64% -22.94% -11.35% 5.31% 18.99% -16.98%
2023 EPS 2024 EPS 2023 Weighted EPS 2024 Weighted EPS 12-Month Forward EPS 12-Month Average Fair Value Forward PE Current Forward PE

Current Forward Cash-Adjusted PE

$10.31 $11.86 $5.75 $5.25 $11.00 24.5 29.8 21.0

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FactSet, Fast Graphs

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FactSet, Fast Graphs



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