Artificial intelligence-related stocks have been rising this year, and UBS has become more bullish on some stocks. Nvidia has been a leader in the field, with shares of the chip darling soaring about 186% this year. By comparison, the S&P 500 is up more than 22% in 2024. The launch of ChatGPT in 2022 will be a turning point in the adoption of artificial intelligence. “While initial gains in the theme have so far been led by semiconductors due to their dominance in the enablement layer, we see attractive opportunities ahead, including in other industries and geographies as AI investment opportunities expand. Beneficiaries. Gantori noted that most analysts believe that annual revenue related to the artificial intelligence industry may exceed the trillion-dollar mark within the next decade. “Overall, given the solid prospects of artificial intelligence over the next 12 years, We will capitalize on any near-term volatility in AI-related companies (e.g., due to seasonal weakness and geopolitical escalation) to build on strategic and long-term AI investments following strong 18-month (capex) growth and improving monetization,” he continued. In light of this, UBS has updated its new global AI portfolio to include the latest stance on the yuan platform. The firm is particularly bullish on AI infrastructure stocks with strong pricing power and competitive positions, as well as platform and application beneficiaries. Here are some of the names on the list. Meta, which will report third-quarter results after the bell on Wednesday, has soared nearly 66% in 2024, and UBS believes there may be room for further gains thanks to the company’s efforts in short films. On top of that, Meta is investing in the Metaverse through its Reality Labs division, which focuses on producing virtual reality and augmented technology, which the company says is “the right long-term strategy.” “The company should benefit from healthy user engagement, improving monetization of Reels and the long-term opportunities provided by long-term monetization of Instagram and WhatsApp,” UBS wrote. Apple and Intel are also scheduled to release quarterly results this week, and both companies A report will be released after the bell on Thursday. It is worth noting that Apple has gained more than 21% this year. On Monday, the company officially released its artificial intelligence platform, called Apple Intelligence, in an iOS update for iPhone 16 and iPhone 15 Pro, as well as a software update for iPad and Mac. After the news was announced, the stock price closed up nearly 1%. Looking ahead, UBS sees the brand’s risk/reward profile as sound, with the steady growth of the iPhone and strong growth in services serving as catalysts. Meanwhile, Intel, whose shares are down more than 54% this year, may see gains ahead as the company believes the broader PC industry is in the doldrums. Analysts at the company said that given the growing demand for artificial intelligence computing, Intel should face the opportunity to catch up with its peers. AAPL INTC Year-to-date peak AAPL Year-to-date comparison to INTC Streaming giant Netflix may also be a beneficiary of growing demand for artificial intelligence. By 2024, the stock has surged about 56%. “We believe market concerns about Netflix are overdone,” the company said. “While we agree that increased competition will result in some subscriber losses, we expect Netflix to continue to deliver strong growth globally.”
UBS believes the artificial intelligence story is still in its “early stages.” These are the stocks to play with | Real Time Headlines
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