Some surprise chip equipment makers as well as cloud software analytics companies are potentially among the best AI stocks, along with Nvidia (NVDA), says Bank of America in a report on the ChatGPT phenomenon.
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“Big Tech is now engaged in an AI arms race developing their own ChatGPT-like chatbots and incorporating AI into their search engines,” the note said.
The BofA report added: “Semiconductors/hardware/chip equipment are likely beneficiaries because the training and running of large language models like ChatGPT requires significant computing power. In addition, cloud software analytics are also winners from the increase in data volumes along with cybersecurity as digital threats become more sophisticated.”
Among software AI stocks, the BofA report points to Adobe (ADBE), Shutterstock (SSTK), NICE Systems (NICE) and SAP (SAP). Also on the list are online advertising firm Appier Group (APPIF), China’s cybersecurity firm QiAn Xin, U.K-based data analytics firm Relx (RELX) and Palantir (PLTR).
“Sectors which could be disrupted are media (video, music, imagery) due to AI-multimodality, with heavy text and white-collar service-based industries to potentially see headwinds from job automation,” said the BofA report, published on Tuesday.
Best AI Stocks
In semiconductor/hardware AI stocks, BofA names Nvidia, Taiwan’s AIChip Technologies and Taiwan Semiconductor Manufacturing (TSMC). Further, it adds Advantest (ATEYY), data center networking gear maker Arista Networks (ANET), Hoya (HOCPY) and ASML Holding (ASML).
NVDA stock belongs to the IBD Leaderboard. ANET stock ranks No. 28 in the IBD 50 roster of growth stocks.
Microsoft (MSFT) recently increased its stake in startup OpenAI. It aims to take on Google-parent Alphabet (GOOGL) in internet search.
In addition, ChatGPT is only one of many “generative AI” technologies that could roil a host of industries. These technologies create text, images, video and computer programming code on their own.
Other big-tech companies included in the race among AI stocks include Meta Platforms (META), Apple (AAPL) and China’s Baidu (BIDU).
Shutterstock hosted an investor day on Tuesday. The company has disclosed partnerships with OpenAI, LG AI Research and Meta.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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Source: https://www.investors.com/news/technology/best-ai-stocks-chatgpt-bank-of-america/?src=A00220&yptr=yahoo