Barclays has named several global stocks that are expected to do well as the use of artificial intelligence-related services advances. The investment bank acknowledges that hardware and infrastructure giants, especially Nvidia and Microsoft, are currently seeing the immediate benefits of the AI hype. However, in the long term, it is said that businesses in the service sector can make huge savings. Companies in Barclays’ “Global AI Winners” basket include Canada-headquartered Telus and France’s Capgemini. Shares of the two companies, which provide customer service, digital strategy, and consulting services, are expected to rise 67% and 31%, respectively, according to the consensus target price of analysts compiled by FactSet. “We believe that most of the near-term economic value attached to AI will accrue to a few key players in the foundational hardware parts of the AI value chain, while the longer-term transformation and adoption level in software should ultimately benefit Tech. and service-based businesses,” Barclays analysts led by Emmanuel Cau said in a note to clients on June 22. Capgemini was also among the companies identified by Goldman Sachs earlier this month as stocks that have the potential to be leveraged by AI applications in the medium. and long term. The table below highlights the non-US stocks in Barclays’ basket of AI stocks. Japanese and Taiwanese companies dominate the list, with six stocks from each country. Taiwanese companies include chip makers such as TSMC, Gigabyte, Global Unichip, and Alchip, while Japanese firms include high-tech component makers such as Lasertec and Tokyo Electron. Barclays also expects SoftBank Group to be a long-term beneficiary of AI thanks to the conglomerate’s investments in several startups and technology companies. Barclays has identified Germany’s SAP and the UK’s Sage Group as potential long-term beneficiaries in Europe. Both companies have access to massive amounts of data – critical for enabling AI – as they provide their customers with extensive customer support, HR, and accounting tools. Similarly, according to Barclays, Amsterdam-headquartered Adyen is benefiting from increased adoption of AI. The fintech and payment services company has previously admitted to using AI to improve fraud detection and customer support. Dutch companies ASM and its former subsidiary ASML were also named as net beneficiaries of the AI trend. Companies are developing devices that enable the production of high-tech semiconductor chips that power chatbots, such as ChatGPT.
Barclays names global stocks it says are winners for the long term
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