The The frenzy of investing in artificial intelligence in 2024 it is still heating up. AI chip manufacturer Nvidia shares he is alone escalate by 77% since the beginning of the year. Although some Wall Street analysts are warning about it artificial intelligence madness is a “bubble within a bubble”, others say so Gigantic tech stocks are actually undervalued.
Goldman Sachs analysts, led by Ryan Hammond, said in a recent note that AI stocks still have upside potential and that Goldman analysts are already starting to see which companies will benefit next from the AI boom.
“Except NVDA [Nvidia]investors have focused on expanding AI trading,” Hammond wrote in a note to investors overdue last week. “We expect there will likely be three broad, next stages of AI commerce.”
🛠️ Phase 2: AI Infrastructure
Goldman analysts say the first phase of the growing artificial intelligence trade focused largely on chipmaker Nvidia. Phase two will include companies outside of Nvidia that are involved in building AI infrastructure, such as semiconductor manufacturers, cloud service providers, data centers, hardware manufacturers and utilities.
Companies in this phase include Arm, Microsoft, AmazonAND Cisco.
Goldman says its equal-weighted basket of Phase 2 stocks has already increased 14% over the past six months.
📈 Phase 3: Escalate revenues with artificial intelligence
Goldman claims that phase three will see stocks of companies that produce rise revenue-generating AI-enabled software and products. Outstanding companies identified by Goldman Sachs in this category include Meta for parents on Facebook, AdobeIntuit, Uber and Sales force.
Phase 3 shares are up 21% over the past six months, according to Goldman Sachs.
🤖 Phase 4: AI Productivity
Finally, in phase four, investors will focus on companies whose productivity has increased by adopting artificial intelligence technology, Goldman says. According to Goldman, the sectors most likely to benefit from AI adoption include software and services, as well as commercial and professional services. Healthcare, financial services and insurance will also benefit.
Goldman Sachs listed Moderna, Tinder Match Group’s parent company, Expedia and industrial supplier MRC Global as companies in this category that mentioned artificial intelligence in their fourth-quarter earnings calls.
