One thing is clear about the AI arms race, as it was about a range of technologies before it: there will be winners, and there will be losers. Some of these winners will be big, as a recent study from Bank of America revealed. In fact, Bank of America came out with a substantial list of winners in the move to artificial intelligence and even offered up reasons why said winners will come out ahead.
The list ran the gamut, but was heavy on tech stocks in general, as they are the most likely to either be working in AI or working to support AI. For instance, it will surprise no one that Microsoft (NASDAQ:MSFT) was one of the firms thanks to its OpenAI integration into Bing and other tools. Likewise, Alphabet (NASDAQ:GOOG) also gained thanks to its connection to the DeepMind Sparrow LLM and the Bard chatbot system. Indeed, Bank of America already singled Alphabet out despite Microsoft’s work in the field.
Much of the remaining list is straightforward. Apple (NASDAQ:AAPL), Baidu (NASDAQ:BIDU), Nvidia (NASDAQ:NVDA), ASML (NASDAQ:ASML), Taiwan Semiconductor (NYSE:TSM), Arista Networks (NASDAQ:ANET) and Adobe (NASDAQ:ADBE) all made the cut by virtue of some project going on within the space. Nvidia and Taiwan Semiconductor, meanwhile, were included more for their roles in the infrastructure of AI rather than the applications therein.
Most of the firms listed by Bank of America are considered Buys, according to analyst consensus. Nevertheless, the upside potential varies wildly among these stocks. The current leader is Alphabet, which offers 36.94% upside potential thanks to an average share price target of $124.60. The laggard, meanwhile, is Nvidia, whose average price target of $256.39 gives it a comparatively meager 8.04% upside potential.
