Nvidia Inc NVDA and Meta Platforms Inc META , top artificial intelligence (AI) plays and elite members of the Magnificent 7 club, are topping the S&P 500 leaderboard so far this year.
These two stocks were among the best performers of 2023 indeed, Nvidia was the years winner by a country mile with a gain of 239% and also led the powerful fourth-quarter surge that has resumed in the opening weeks of 2024.
Much of this momentum is based on the anticipation that AI will become a significant revenue stream, despite it not yet making a substantial impact on the earnings of either company.
Some fear that these AI expectations have become overplayed and the risk of disappointment could burst this AI baby bubble, as analysts at Bank of America call it.
Also Read: Is Tesla Still A Magnificent 7 Stock? Berkshire Hathaway, Broadcom, Eli Lilly Line Up As ContendersAI Plays Outside Magnificent 7
If, however, investors believe that AI will come to dominate tech growth, there are a number of stocks sitting outside the Magnificent 7 that are also right up there on the S&P 500 leaderboard but at less lofty valuations.
Among the likely most important use cases for AI will be cybersecurity. As cyber criminals become more sophisticated, those safeguarding corporate networks and data are expected to deploy AI models to maintain a lead in security measures.
Palo Alto Networks PANW says: AI is a critical piece of our history of solutions that prevent successful cyber-attacks.
Cortex is Palo Alto Network's AI-based continuous-security platform, which continually evolves to help
the security operations center stop the most sophisticated threats.
Palo Alto shares are up 28% so far in 2024, having gained 111% in 2023.
The companys last quarterly earnings report was impressive, reporting earning of $1.36 per share, comfortably beating consensus expectations of $1.16.
Fortinet FTNT plays out a similar theme. The company says: Our experts develop and utilize leading-edge machine learning (ML) and AI technologies to provide timely and consistently top-rated protection and actionable threat intelligence.
Its shares are up 20% so far in 2024, and gained 20% during 2023 despite a sharp drop in August 2023.Loading… Loading…
Nevertheless, its fourth-quarter earnings report last Wednesday beat market expectations and analysts like the stock, with Goldman Sachs on Thursday raising its price target to $85. The shares currently stand at $70.44.
Juniper Networks JNPR calls itself a leader in AI and cloud networking. The company says of its product: [Our] highly performant and adaptive network infrastructures are optimized for the connectivity, data volume, and speed requirements of mission-critical AI workloads.
Year to date, Junipers shares are up 26%, following a 6% loss in 2023. However, the shares surged around 20% alone on Jan. 8 after it was reported that Hewlett Packard HPE was in advanced talks to take over the company.
Arista Networks ANET has also developed AI networking systems, and says: Arista's open, interoperable solutions and emphasis on operational efficiency,automation, and streamlined management workflows contribute to lower operational costs and overall total cost of ownership for AI networking deployments.
So far in 2024 Aristas shares have gained 20%, after rising 94% over 2023.
The company reports its fourth-quarter earnings on Thursday, and is expected to post earnings per share of $1.70, up from $1.41 in the same quarter a year ago.
Now Read: AI Titans Meta, Microsoft, Nvidia Join Biden On Safety Initiative
America’s ousted vaccine chief has told Sky News there will be more deaths from a growing measles outbreak unless the US government shifts its rhetoric on vaccination.
“Ultimately, they’re not gonna be able to run from reality,” said Dr Peter Marks, former head of vaccines at the US Food and Drug Administration (FDA).
Dr Marks also echoed concerns among public health experts that the federal administration’s stance on vaccinations and cuts to global health initiatives could make the world, including America, more vulnerable to other preventable diseases.
There have been 935 confirmed cases of measles in the US, with outbreaks in six states and cases reported in 23 others.
There are also related outbreaks in Mexico and Canada, which share links to the Mennonite religious community in which the US outbreak took hold.
Image: There have been outbreaks in Mexico and Canada, which share links to the Mennonite religious community. Pic: AP
Dr Marks was forced to resign as the director of the FDA’s Centre for Biologics Evaluation and Research in March after clashing with incoming US Health Secretary Robert F Kennedy Jrover his stance on vaccines and scientific evidence.
RFK Jr has come under intense criticism from public health experts after continuing, despite the outbreak, to endorse alternative and unproven ways to prevent and treat measles.
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Secretary Kennedy has since publicly endorsed the measles, mumps and rubella (MMR) vaccine as the safest and most effective way of preventing measles.
But at the same time, he has continued to criticise the MMR jab.
Image: RFK Jr has endorsed alternative and unproven ways to prevent and treat measles. Pic: AP
MMR – one of the safest and most well-studied vaccines in history – is credited with virtually eliminating measles in the US and much of the developed world in the early 21st century.
Uptake of the vaccine is now falling.
On Friday, as the latest data confirmed measles cases continued to rise, Secretary Kennedy instructed the federal agencies to review the use of alternative drugs in combination with vitamins for the treatment of measles and other diseases.
In an interview the same day, while maintaining he is not opposed to vaccination, Secretary Kennedy repeated erroneous claims that the MMR jab contains “aborted foetus debris and DNA particles”.
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1:15
From March: Why are measles cases so high?
‘These are needless deaths’
Three people have died in the US outbreak so far, two of them children. None had been vaccinated against measles.
“It’s fully appropriate to say that these are needless deaths,” said Dr Marks. “And we’re going to be having more of those if this measles outbreak continues to spread.”
He also believes public health experts need to get better at preventing “misleading information and lies” around vaccination to take hold.
“We have yet to find the kind of active, unified voice that we need to say: ‘hey guys, stop this stuff’,” said Marks.
“These people over there, they’re entitled to their opinion, but they don’t have to harm your kids by broadcasting it.”
He is careful not to directly criticise the man who forced him from his position at the FDA, urging him, instead, to listen to reason.
“To consider alternative viewpoints from those who have a lot of knowledge and experience,” said Marks.
Image: File pic: Reuters
‘A sad day for America’s children’
Others are less cautious about criticising RFK Jr: Paul Offit, a vaccinologist at the University of Pennsylvania, said: “When he was confirmed as Secretary of Health and Human Services, I think that was a sad day for America’s children.
“He has for 20 years been a virulent anti-vaccine activist, science denialist and conspiracy theorist.”
Prof Offit is also concerned about his impact on the rest of the world.
“We export our fears and I think with social media now, it’s much easier to amplify those fears.”
Uptake of the MMR jab is falling in the UK and parts of the EU. Cases of measles have increased there too but, with the exception of Romania, to a lesser extent than in the US.
An increase in measles, one of the most infectious diseases known to science, is often “an early warning sign” of falling vaccination rates more widely, according to the head of the UK’s vaccine advisory committee, Prof Andrew Pollard.
“Just as we’ve seen whooping cough outbreaks here in the UK over the last couple of years,” said Pollard.
“It’s not just MMR where the [vaccination] rates are lower, it’s also other vaccines where we’re not getting such high coverage.”
Image: File pic: Reuters
According to the World Health Organisation, 138 countries have reported measles cases with 61 experiencing large outbreaks. The highest number globally since 2019.
The situation could now get worse after the Trump administration froze the US annual contribution to the WHO, which stood at $960bn last year and has threatened to cut $300m for the global vaccine alliance (GAVI).
“That money not coming through for our next strategic cycle would mean that we will be unable to vaccinate about 75 million children,” said Sania Nishtar, CEO of GAVI.
According to GAVI, that could lead to well over a million additional child deaths over the next five years from diseases like Malaria, meningitis and yellow fever.
GAVI is urging the US administration to reconsider a funding cut, in part because US businesses manufacture many of the vaccines it supplies, but also because it keeps the US safe.
“We are the only agency in the world that maintains the stockpiles of vaccines,” said Nishtar.
“If there’s an Ebola outbreak anywhere in the world, we would be the ones mobilising the stockpiles to ensure that the outbreak is contained. There and then, preventing it from reaching American shores.”
Dr Marks predicts that the administration will be forced to shift its stance if the outbreak continues to grow and vaccine-hesitant Americans begin to witness the typically unseen impact vaccinations have.
He said: “As the deaths start to crank up, public opinion will certainly change because they will see once again what happens when people around them are dying or getting very sick.”
Criminals who refuse to attend their sentencing hearings will face further punishment under a new law.
The government is introducing the Victims and Courts Bill to parliament today, which will include more jail time or loss of privileges in prison in England and Wales for criminals who refuse to attend court for sentencing.
Several high-profile offenders have refused to face victims’ families, sparking a public outcry and calls for a change in the law.
The families of murdered primary school teacher Sabina Nessa, law graduate Zara Aleena and mother-of-three Jan Mustafa have all campaigned for the change after their killers were absent from sentencing hearings.
Ms Nessa’s sister, Jebina Islam, Ms Aleena’s aunt, Farah Naz, and Ms Mustafa’s cousin, Ayse Hussein, said: “This move holds offenders to account.
“It sends a clear and necessary message: the justice system is not something you should be able to opt out of.
“It is not about punishment through force – but about ensuring that perpetrators cannot remove themselves from the consequences of their actions.”
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Image: Teacher Sabina Nessa was killed by Koci Selamaj in 2021 after he drove to London to assault a stranger
They said the legislation is a “step in the right direction” and the proposed punishments indicate it is “being taken seriously”.
The trio added: “This change supports victims and society alike. It shows justice being done.
“It gives families a moment of recognition and a form of reparation. It is a moment of reckoning for the convicted.”
Under the new legislation, judges will be able to sentence offenders for up to two more years in prison for avoiding justice.
Those already facing lengthy imprisonment or whole life orders could have a range of prison punishments, such as confinement to their cells and being stripped of privileges, such as extra gym time.
Former Tory prime minister Rishi Sunak had pledged to change the law after meeting the mother of murdered nine-year-old Olivia Pratt-Korbel, and Sir Keir Starmer promised to enact it.
Image: Olivia Pratt-Korbel was killed by Thomas Cashman, who refused to attend his sentencing hearing in 2023
Thomas Cashman, the gunman who killed Olivia as he chased a drug dealer who had run into her Liverpool home, did not appear in court to hear his life sentence in April 2023.
Earlier this year, triple crossbow and knife killer Kyle Clifford refused to attend his sentencing when he received a whole life order.
Southport child murderer Axel Rudakubana was removed from his sentencing hearing for repeatedly shouting in January.
Image: Teacher Sabina Nessa was killed by Koci Selamaj in 2021 after he drove to London to assault a stranger
Image: Zara Aleena was killed by Jordan McSweeney, who should have been recalled to prison at the time. Pic: PA
Justice minister Alex Davies-Jones said: “I would like to thank the remarkable families of Olivia Pratt-Korbel, Jan Mustafa, Sabina Nessa and Zara Aleena and countless others who have campaigned tirelessly for offenders to have to face the reality of their crimes by attending their sentencing.
“Justice isn’t optional – we’ll make sure criminals face their victims.”
The bill also says it will restrict parental responsibility from child sex offenders who commit serious crimes against their own children.
The powers of the Victims’ Commissioner will also be strengthened to require them to produce an independent report on whether agencies are meeting their statutory duty over the Victim’s Code to hold the government to account.
Child protection charity the NSPCC backed the move, saying they hope it will improve how young victims and survivors are treated, but said it was “not a complete solution”.
Eighteen-year-olds will be allowed to drive trains due to concerns over labour shortages, the Department for Transport (DfT) has announced.
The current minimum age for someone wanting a career on the railways is 20.
But with 87% of night-before cancellations made because a driver is unavailable, the government has decided to lower the age of entry by a couple of years.
Several operators rely on drivers to work extra shifts voluntarily.
At present, the average age of a British train driver is 48, while 30% are due to reach retirement age by 2029.
A consultation on lowering the minimum age for drivers, carried out last year by the Conservative government, received “overwhelming support from across the industry”, the DfT said.
Other nations which have lowered the age for train drivers are France, Germany, the Netherlands and Switzerland, officials added.
Transport for London opened driver apprenticeships on the Underground to 18-year-olds in 2007.
Industry body the Rail Safety and Standards Board said its research had shown 18-year-olds are “capable of safely becoming train drivers”.
New job and apprenticeship opportunities could be available as early as December, the DfT said.
Heidi Alexander, the transport secretary, said the government was “future-proofing” the railways against “delays and cancellations caused by a shortage of drivers”.
Mick Whelan, general secretary of train drivers’ union Aslef, said: “At the moment, young people who want to become train drivers leave school or college at 18, get other jobs, and we miss out as an industry as they don’t wait around until they turn 20 to find a career.”