Investment firm Bank of America introduced a list of companies on Tuesday that it believes will benefit from the rise of artificial intelligence, including tech behemoths such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA).
In the note, analysts from the firm noted that tech comapnies are now engaged in an “AI arms race,” with many developing their own chatbots similar to ChatGPT.
ChatGPT is created by OpenAI, which recently signed a deal with Microsoft (MSFT) to integrate its technology into its Bing search engine and Edge web browser.
Bank of America analysts added semiconductor companies, particularly GPU and chip equipment makers, are “likely beneficiaries” due to the fact that training and running large language models needs “significant” computing model.
The analysts also explained cloud software analytics should benefit from increased data volumes, while cybersecurity stands to benefit from more sophisticated digital threats.
Areas that could be disrupted include media, specifically, video, music and images, as generative AI is able to create content in these industries, which may lead to increased job automation.
- Microsoft (MSFT) via its OpenAI integration
- Alphabet (GOOG) (GOOGL) via its DeepMind Sparrow LLM and its recent Bard chatbot
- Meta Platforms (META) via its recent LLaMA large language model announcement and GPU enabled AI research supercluster
- Apple (AAPL) as it benefits from licensing the search engine on iOS
- Baidu (BIDU) from its Ernie chatbot
- Nvidia (NVDA) via its GPUs being used in AI arms race
- ASML (ASML) as it is the “leader” in extreme ultraviolet lithography tools
- Taiwan Semiconductor (TSM) as it is the leader in foundry chip making
- Arista Networks (ANET) via high-throughput data center switches used for intensive AI workloads
- Adobe (ADBE) from its Sensei AI platform
- Shutterstock (SSTK) which has a generative AI partnership with OpenAI
- NICE Systems (NICE) via AI data surveillance
- SAP (SAP) via its enterprise and business software
- Relx (RELX) via AI enabled information-based analytics/decision tools
- Palantir (PLTR) via its AI-enabled platforms used by both commercial enterprises and governments.
Last week, Wedbush Securities said that Microsoft (MSFT) has seen a “steady” flow of cloud computing deals since the weakness in December.
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