Artificial Intelligence (AI) is no longer just for sci-fi movies. The 2023 economic forecast shows AI playing a major role in diverse sectors. Bank of America has gone so far as to predict that AI could inject a staggering $15.7 trillion into the global economy by 2030.
AI and Its Explosive Impact: A Quick Overview
- The Predicted Timeline:
- Most tech disruptors, like the personal computer or the internet, took between 15 to 30 years to fully integrate into mainstream culture.
- AI, on the other hand, could be widely adopted much sooner, potentially within the next 3-5 years.
- Who Benefits?
- While tech giants are obvious contenders, even sectors previously untouched by technology stand to gain. Alkesh Shah, an analyst from Bank of America, equates AI’s potential influence to that of monumental tech shifts like the telephone and automobile.
- Is the Hype Real?
- AI’s potential isn’t just speculation. Analysts from various sectors predict major shifts and have spotlighted stocks and ETFs for keen investors to keep an eye on.
Hot Stocks Powered by AI:
- Nvidia Corp (NASDAQ:NVDA): The shining star of 2023, Nvidia is central to AI’s ascension. With about 75% control of the AI GPU market, its chips are pivotal for AI operations. Shah projects this AI-centric approach could reinvent Nvidia’s business model.
- International Business Machines (NYSE:IBM): IBM’s Watsonx GenAI could potentially rake in $1 to $2 billion in consulting revenue by 2025, with major efficiencies from AI-driven chatbots.
- Sweetgreen Inc (NYSE:SG): This eatery is revolutionizing its operations using AI. Its AI-powered Infinite Kitchen slashed labor costs by 67%, offering more efficiency than their traditional models.
- Adobe Inc (NASDAQ:ADBE): Their GenAI tool, Firefly, has generated over two billion images since its beta launch in March. With its incorporation into the Creative Cloud, it could mean an extra $1 billion in revenue by 2024.
- Workday Inc (NASDAQ:WDAY): Having embraced AI since 2020, Workday’s investments could soon pay dividends, with products like AI Marketplace and an innovative GenAI feature.
- Meta Platforms Inc (NASDAQ:META): AI’s transformative touch could enhance user engagement on platforms like Facebook and Instagram. Their use of AI-recommended content has already shown promising results.
- Morgan Stanley (NYSE:MS): With an AI-powered chatbot in the works, they aim to provide financial advisors with a distinctive edge.
AI-Driven ETFs to Keep on Your Radar:
- Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ): Dubbed as the prime pick for the generative AI wave.
- Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ): A diverse choice among the recommended ETFs.
- iShares U.S. Tech Breakthrough Multisector ETF (NYSE:TECB): For those looking for exposure to AI-centric companies.
In summary, AI isn’t just a fleeting trend – it’s a revolution. Whether you’re a budding investor or a seasoned vet, it’s clear: the AI wave is worth riding.
