"Needless to say, over the last three years, the Artificial Intelligence explosion has been at the top of almost every investor's mind. Many have become wealthy, as stocks like NVIDIA and other top tech names soared in a rally some feel is reminiscent of the late 1990s dot-com boom and bust. Between billions being spent on capital expenditures related to AI, the circular financing that seems to shovel money between the top companies in the industry, the worries over depreciation being used in accounting, and off-balance sheet financing, concerns over an AI bubble are legitimate and need to be addressed."
"However, some top corporate executives are beginning to integrate robust AI systems into their operations and could be ready to demonstrate significant savings sooner rather than later. The team at Goldman Sachs profiled companies that have mentioned AI in earnings reports regarding productivity enhancement. This was noted in the Goldman Sachs research."
"With the AI trade showing signs of potentially transitioning to another phase, Ryan Hammond provides a list of what we call Phase 4 AI trade stocks, with characteristics that suggest the underlying companies could be ripe for margin-enhancing AI initiatives. Focus on: companies with high labor costs (you need room to improve); high exposure to AI automation (you need to be open to incorporating technology); and those that have already discussed AI in the context of productivity (we prefer companies that are heading down the path already, not sometime in the future)."
Artificial Intelligence has driven major stock rallies over the past three years, producing substantial wealth for investors in companies like NVIDIA and other top tech names. Large capital expenditures, circular financing among leading firms, depreciation accounting practices, and off-balance-sheet financing raise legitimate concerns about an AI market bubble. Some corporate executives are integrating robust AI systems to capture near-term productivity and cost savings. Goldman Sachs identified companies mentioning AI in earnings reports as potential productivity beneficiaries. Phase 4 trade criteria prioritize high labor costs, high AI automation exposure, and prior AI productivity discussion, revealing five Buy-rated, dividend-paying Russell 1000 names.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]