Buying shares of Nvidia or other semiconductor and big tech stocks is just one way to play on the artificial intelligence theme. There’s a cheaper way, Ranmore Fund Management’s Sean Peche told CNBC Pro Talks last week. “Most investors over the past few years have believed that the only way to play artificial intelligence is to own Nvidia and some of the other peers,” the portfolio manager said. Page is positive about leveraging the financial industry to get into the theme. “You have … attractive dividend yields that are much higher than REITs in the U.S.,” Page said. “If you look at their growth and their tangible book value, you see it goes from left to right. Up, well-managed, low P/E ratios, I’m getting additional benefits from the use of technology.” He noted that artificial intelligence will help these banks, but given that the stocks trade at a price-to-earnings ratio of just six times, investors “won’t be paying for it. The artificial intelligence factor pays the bill.” FactSet data shows that the S&P 500 index, which has always been dominated by large technology companies, has a price-to-earnings ratio of 27.03. Nvidia shares currently trade at about 57 times earnings. Names he likes include BNP Paribas, which Peche noted has identified 780 “test cases” where artificial intelligence can help its business. “So even in a business like banking, it can help reduce costs. You know, how many times have you been to a branch lately? Think about your app and your chatbot, if you want to add signers and help them Follow the rules and all the risks,” Page said. He also singled out ABN AMRO and UniCredit, adding that the latter is “very well managed” and among the banks with the greatest potential to benefit from artificial intelligence. “Interestingly, when we did some analysis a few months ago on the benefits of artificial intelligence in banking… among the large European banks, Unicredit was number one, which shows you that there are rigorous Performance and delivery culture,” Page said. Overall, he likes European banks because all his investments are in this corner of the industry, but he stresses that he doesn’t hold them just because of artificial intelligence, which he says is just an added bonus.
Fund manager: How to play AI without owning NVIDIA and other chip stocks | Real Time Headlines
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