We’ll most likely see growth continue in the near and long term for cloud computing as well as artificial intelligence (AI). This gives traders a pair of options to capitalize on: the Direxion Daily Cloud Computing Bull 2X Shares ETF (CLDL ) and the Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF (UBOT ).
AI and cloud computing have offered traders a “hand and glove” dynamic over the past 10 years, as mentioned in MSN. Businesses are moving their core operations into cloud-based computing while also integrating elements of AI. So the pair should continue to open the door for trading opportunities.
“More companies transferred their data from on-premises servers toward public cloud [platforms. These] are more secure, scalable, and accessible across a wide range of computing platforms,” MSN explained. [“These] companies store more data on these cloud [platforms. So more] AI applications are being developed to crunch all of that information to make better data-driven decisions.”
From a numbers perspective, growth looks encouraging. The cloud computing market will expand at a CAGR of 16.5% from 2024 to 2032, per Fortune Business Insights. In the case of AI, Grand View Research is forecasting CAGR to reach 36.6% from 2024 to 2030.
Double Up on Growth
Near-term growth could certainly help prop up the biggest players in the cloud computing and AI industries. With Direxion’s leveraged ETFs, traders can add double the exposure to both industries.
In the case of cloud computing, CLDL is an ideal play. It seeks 200% of the daily performance of the Indxx USA Cloud Computing Index. The companies included in the index are involved in the delivery of computing services — servers, storage, databases, networking, software, analytics, and more, over the internet — more broadly referred to as “the cloud.”
Given the growth potential of AI, traders should also consider UBOT. The fund seeks daily investment results equal to 200% of the daily performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index. It aims to provide exposure to companies in developed markets expected to benefit from adoption and use of robotics and/or AI.
Want concentrated exposure to a single stock that can take advantage of both AI and cloud computing? Microsoft is one of the premier players in both areas. In this case, traders should also consider the Direxion Daily MSFT Bull 2X Shares (MSFU ) to get double exposure to price gains in Microsoft.
“Microsoft was once considered a slow-growth tech [giant. But] its growth accelerated again over the past decade as it expanded its cloud and AI ecosystems,” MSN said.
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