AI Wave Creates Opportunities and Uncertainty
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Generative AI like ChatGPT is a hugely transformative technology, creating opportunities for AI chip designers, data center providers, and software companies.
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The "second wave" of AI beneficiaries includes companies harnessing AI to optimize workflows, gain insights, automate tasks, and enhance services. Examples include Cognizant, Snowflake, Salesforce, Accenture, and Adobe.
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When investing in AI, focus on financially sustainable companies with strong business prospects, not just short-term hype. Pick companies that will gain from but also survive delays in AI advancement.
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AI will disrupt industries and kill companies unable to adapt, while creating new business models and opportunities. Winners and losers are still unclear.
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Utilize analyst research and screening tools to identify strong companies benefiting from AI, with economic moats that provide resiliency.