Goldman lays out next phases of AI trade and the stocks to play them

[Pelican Press 0]

Goldman lays out next phases of AI trade and the stocks to play them

This is the hidden content, please

• Sign In
• or
• Sign Up

, and major chip stocks like Broadcom . Both have easily outperformed the S & P 500 over the past year, but not nearly to the same extent that Nvidia has. GlobalFoundries is another semiconductor name, but its stock has fallen nearly 20% this year. That type of chip stock may be a better value for investors at this point, according to Goldman. “Within Phase 2, Foundry & [integrated device manufacturers] have a relatively attractive setup of strong expected EPS growth with modest valuations,” Hammond wrote. There are other companies that work behind the scenes, so to speak, in developing the hardware necessary for AI, including Teradyne and Keysight Technologies . Both of those stocks have slipped in 2024, so they could prove to be well-timed bets if Goldman’s phase two comes to pass. And of course, the data necessary for AI needs to be stored and protected, bringing even more companies into the fold. Some areas that could benefit include cybersecurity companies such as Palo Alto Networks , and utility companies like NextEra Energy that can help power the data centers. Those two names are also down year to date, despite being well-liked on Wall Street. For example, Palo Alto Networks has a buy or strong buy rating from about 70% of the analysts that cover it, according to LSEG. For investors looking a bit further into the future, Goldman listed software companies including Intuit and

This is the hidden content, please

• Sign In
• or
• Sign Up

as firms that should see revenue gains from AI and whose stocks already trade with a strong correlation to Nvidia — in other words, “phase three” plays. And for those who are willing to be even more patient, the note mentioned companies that could see productivity gains from AI driving earnings growth in “phase four.” Those stocks include Pinterest , Tenet Healthcare and analytics company Clarivate . — CNBC’s Michael Bloom contributed reporting.

This is the hidden content, please

• Sign In
• or
• Sign Up

Investment strategy,Markets,Keysight Technologies Inc,Teradyne Inc,Palo Alto Networks Inc,Nextera Energy Inc,Pinterest Inc,Tenet Healthcare Corp,Clarivate PLC,Clarivate PLC,

This is the hidden content, please

• Sign In
• or
• Sign Up

.com Inc,Broadcom Inc,NVIDIA Corp,Intuit Inc,

This is the hidden content, please

• Sign In
• or
• Sign Up

Inc.,Globalfoundries Inc,business news
#Goldman #lays #phases #trade #stocks #play

This is the hidden content, please

• Sign In
• or
• Sign Up