MunAiMarkets’ Generative Ai Software Stock Portfolios UP 6% In January

An Introduction

We have done an exhaustive search of the internet and developed 5 categories of generative Ai software stocks in portfolio form whose performances we present below for the month of January, in descending order, along with a description of each portfolio, the performance of the constituents in each portfolio and the reasons for any major price changes.

1. The Ai-focused Drug Discovery Stocks Portfolio: UP 22.3% in January
   • highlights those pure-play clinical stage biotech stocks that are embracing AI to streamline drug discovery and development because creating a new drug using AI can help a company, in some cases, develop a new drug in a matter of days instead of the years it might take using the traditional clinical trial approach.
   • its 5 constituents performed as follows: Absci Corporation  (+41.6%); Schrödinger (+30.0%); Relay Therapeutics (+8.5%); AbCellera Biologics (+8.2%); and Recursion Pharmaceuticals (+7.1%).
   • Reasons for Price Changes:
     • Absci and AMD Announce Collaboration and Strategic Investment to Accelerate the Future of AI Drug Discovery
     • Schrödinger is up significantly this year due to the announcement of an expanded collaboration with Novartis that includes a $150 million upfront payment and the potential for up to $2.3 billion in milestone payments. Schrodinger could also get $150 million in the first quarter of 2025.
   • Go HERE for a live chart (updated minute-by-minute) of each constituent in the portfolio (Not yet available)
2. The Pure-play CyberSecurity Software Stocks Portfolio: UP 12.0% in January
   • consists of companies that train their models with data from previous attacks to create autonomous systems that can detect if an attack is ongoing based on certain readings allowing them more time to prepare mitigation and response strategies. Check out the video How AI is changing the cybersecurity landscape.
   • the 5 largest pure-play companies – with market capitalizations in excess of +$20B – that focus on the development and provision of cyber security software performed as follows: Check Point Software Technologies (+16.8%); CrowdStrike (+16.3%); Zscaler (+12.3%); Fortinet (+6.8%); and Palo Alto Networks (+1.4%).
   • Reasons for Price Changes:
     • Check Point Software Q4 Earnings and Revenues Top Estimates
     • Strength Seen in CrowdStrike: Can Its Jump Turn into More Strength?
     • Cantor Fitzgerald Boosts Earnings Estimates for Zscaler
   • Go HERE for a live chart (updated minute-by-minute) of each constituent in the portfolio (Not yet available)
3. The Pure-play Cloud Computing SaaS Stocks Portfolio: UP 6.5% in January
   • consists of 7 companies that operate exclusively (i.e. are pure-play) in the sector using their cloud application services (i.e. Software-as-a-Service) to provide the storage, processing and managing of data on a network of remote computers hosted on the internet (see Cloud computing).
   • its 7 constituents performed as follows: Cloudflare (+28.5%); Atlassian (+26.0%); MongoDB (+17.4%);  HubSpot (+11.9%); Workday (+1.6%); Datadog (-0.1%);  ServiceNow (-3.9%).
   • Reasons for Price Changes:
     • Cloudflare:
       1. released positive earnings report released on January 30 that beat Wall Street’s expectations and posted strong growth in its core business areas, including its network services and security products;
       2. Cantor Fitzgerald raised their earnings estimates for Cloudflare, and Citigroup boosted their price objective;
       3. the market recovered following the sell-offs triggered by DeepSeek’s new AI model announcement.
     • Atlassian:
       1. Cantor Fitzgerald initiated coverage with a “Buy” rating and set a price target of $292, while BMO Capital Markets raised their rating from “Market Perform” to “Outperform” with a price target of $292;
       2. Additionally, strong financial performance and positive earnings guidance for the upcoming quarters contributed to the stock’s rise; and
       3. The broader market recovery following the sell-offs triggered by DeepSeek’s new AI model announcement.
     • MongoDB:
       1. Cantor Fitzgerald initiated coverage with a “Buy” rating and set a price target of $344.00, while Wedbush upgraded MongoDB to a “strong-buy” rating.
       2. Next quarter’s revenue guidance came in higher than Wall Street’s estimates
   • Go HERE for a live chart (updated minute-by-minute) of each constituent in the portfolio (Not yet available)
4. The Mega-Cap Ai Stocks Portfolio: UP 3.8% in January
   • highlights those tech companies with market capitalizations in excess of $1Trillion.
   • its 7 non-pure play constituents performed as follows: Broadcom (+25.4%); Meta Platforms (+17.7%); Amazon (+8.3%); Alphabet (+7.8%); Apple (+5.8%); Microsoft (+1.5%); Tesla (+0.2%); and Nvidia (-10.6%).
   • Reasons for Price Changes:
     • Broadcom:
       1. released strong Q4 2024 earnings report on January 17, beating Wall Street’s expectations and posting impressive growth in its semiconductor and infrastructure software solutions.
       2. Munro Global Growth Fund highlighted Broadcom as one of its top picks in its Q4 2024 investor letter, noting the company’s significant role in providing semiconductors for AI applications.
       3. The broader market recovery following the sell-offs triggered by DeepSeek’s new AI model announcement.
     • Meta Platforms:
       1. released positive Q4 2024 earnings report on January 29, 2025 that beat Wall Street’s expectations and showed strong growth in its advertising business and user engagement metrics;
       2. several analysts raised their price targets for Meta, citing the company’s strong performance and potential for future growth and
       3. the broader market recovery following the sell-offs triggered by DeepSeek’s new AI model announcement.
   • Go HERE for a live chart (updated minute-by-minute) of each constituent in the portfolio (Not yet available)
5. The Small/Large Cap Ai Stocks Portfolio: DOWN 12.7% in January  
   • consists of 6 generative artificial intelligence software stocks with market capitalizations between $500M and $5B, that are far less expensive, and potentially more explosive, than all the large/mega-cap Ai stocks covered above, that may well get you wider exposure to that growth with less money invested.
   • its 6 constituents performed as follows: Evolv Technologies (+1.5%); Digimarc Corporation (-2.1%); BigBear.ai (-4.7%);  Innodata (-6.2%); Applied Optoelectronics (-24.3%); and SoundHound AI (-28.7%).
   • Reasons for Price Changes:
     • Applied Optoelectronics:
       • released disappointing Q4 2024 earnings report on January 14 of lower-than-expected revenues and earnings resulting in market concerns about the company’s future growth prospects and ability to meet increased competition in the fiber-optic networking sector.
     • SoundHound AI:
       • made a disappointing presentation at CES 2025 of its in-car voice commerce platform which failed to impress investors, leading to concerns about its value and potential costs.
   • Go HERE for a live chart (updated minute-by-minute) of each constituent in the portfolio (Not yet available)