Semiconductor stocks and tech giants are getting a lot of love for artificial intelligence, but RBC Capital Markets offers some alternative ways to play on the theme. Demand for artificial intelligence has pushed the stock market to new highs this year, driving the stock price of leading artificial intelligence chip maker Nvidia to rise nearly 155% this year and accelerating its market value from US$2 trillion to US$3 trillion in just a few months. Other technology giants have followed suit, with Amazon’s market capitalization surpassing $2 trillion for the first time last month. Against this backdrop, RBC Capital Markets highlighted some of its favorite thematic approaches beyond the classic winners, considering artificial intelligence as the “next disruptive big trend.” The company also suspects the market is underestimating the disruptive nature of the technology. “We believe GenAI has the potential to disrupt entire ecosystems and will significantly change the way businesses, communities and people interact with each other and with machines,” the firm’s equity research team wrote. “While we believe this will take several years to materialize , but the spread of GenAI is likely to reshape future generations in the same way that PCs, the Internet, mobile phones, cloud computing or social media do to us today,” the team added. Here are some of the stocks on the list: Meta Platforms’ inclusion on the list is no surprise. The company’s stock price is up 52% this year as the Facebook parent company rolls out new artificial intelligence features and tools. While the social media giant has already gotten a boost from the trend, RBC Capital Markets expects the stock to benefit from a world where digital advertisers pitch to artificial intelligence and virtual assistants. The company also sees the growth of artificial intelligence as a way for the biggest giants to continue to solidify their dominance. “As certain apps gain widespread adoption and/or popularity, we expect these companies to capture a significant portion of monetization at the expense of product developers, given that ecosystem vendors control the true top of the funnel,” the team wrote. RBC Capital Markets has also highlighted a number of software stocks that could be wildly successful as artificial intelligence proliferates, viewing the tool as a “revenue enhancer and profitability extender” that could take three to five years to materialize. CRWD YTD mountain Share 2024 CrowdStrike is an example of a company that should benefit from higher security needs, including data protection. The provider’s stock price has risen 52% this year. Adobe is a company that uses artificial intelligence to drive creativity and innovation. Profitable brands. The company has made great strides with its Firefly suite of tools that use artificial intelligence to generate imagery and provide users with huge returns on investment, the company said. Continued growth, we expect significant growth opportunities for AdAdobe over the next few years as it monetizes these products through upgraded customers, potential standalone products, and cross-enterprise expansion. Adobe stock price will fall 3% by 2024. The trend should boost project demand, although it could threaten the industry by automating tasks and eliminating workers. The company sees IT firm Accenture as an early winner in this wave, pointing to the top three in fiscal 2024. Quarterly artificial intelligence bookings exceed $2 billion. Accenture shares fell nearly 15% in 2024.
