A top-performing fund manager says the Stock market winners in the race to AI supremacy are more obvious than many investors think.
Antipodes Partners, which manages around $10 billion in assets across its portfolios has revealed 5 AI stocks to buy in a recent letter to investors.
“Workloads will continue to move to the cloud and the evolution of AI is a structural opportunity,” said the note.
“AI will increasingly infiltrate our lives in ways we are yet to fully appreciate, and it has incredible potential to revolutionise the way businesses serve customers.”
But the fund manager warned the AI industry is a long way from broad monetization and said there will likely be as many losers as winners in the hot stock market sector.
AI stocks to buy
Antipodes says investors need not look towards fringe and speculative companies for AI exposure.
It says the best AI stocks to buy are hiding in plain sight, tipping the following five well-known companies to be major beneficiaries of tech thematic.
- Oracle (NYSE: ORCL)
- SAP (ETR: SAP)
- Microsoft (NASDAQ: MSFT)
- Meta (NASDAQ: META)
- Taiwan Semiconductor Manufacturing Co (TPE: 2330)
“The key ingredients for successful AI models are an ability to deploy compute power cheaply, and a vast amount of quality proprietary data to train the model to deliver valuable insights.
“Oracle, SAP, Microsoft & Meta are platforms that have the compute power, as well as the proprietary datasets, whether corporate (Oracle, SAP, Microsoft) or consumer (Meta).
“There will be large opportunities to upsell AI features within existing software to current users as well as launch new services. These companies are well-placed to monetize AI and are not priced for perfection.”
In the case of Taiwan Semiconductor Manufacturing Co, Antipodes says the semiconductor manufacturing giant is the leading supplier of chips to power the AI revolution.
“TSMC has a near monopoly over the manufacture of leading-edge chips – but is priced at just 15x forward earnings largely due to geopolitical concerns,” said Antipodes in the letter.
Related: 15 artificial intelligence stocks under $10
The post 5 AI stocks to buy: Are investors ignoring the obvious winners? appeared first on Asia Markets.
