There’s a whole world of stocks for investors beyond flashy AI names like Nvidia, according to investment firm Fidelity International. These indirect AI plays include semiconductor foundries, packaging technology companies and memory companies, according to investment firm Fidelity International. are, the investment firm said in a statement. Wednesday’s report. “Instead of focusing on so-called hot AI stocks — because the names that are big today may not be tomorrow’s winners — investors can consider the many indirect beneficiaries, or diversified businesses, where the benefits of AI capitalize.” For cars may not be immediately obvious. Fidelity said in its report. It highlighted parallels between the current AI hype and the “Internet era” before the dot-com bubble burst: “Internet stocks are currently ‘hot stocks.’ And while there were some successful companies, many failed. In our view, AI will follow a similar trend,” said Scientist analysts. Thus, it encouraged investors to look further ahead to invest in the stock. “Among them semiconductor foundries. , including packaging technology companies and memory companies. Further downstream, data center providers and even the utilities that provide energy to those data centers could feel a tailwind. ” said Mukhlis. The AI boom that started with the launch of ChatGPT in November 2022 has been a boon for Nvidia, whose graphics processing units are used to train and run the chatbot. Last year, the chip Designer’s shares are up nearly 280 percent. Looking beyond Nvidia, however, stocks in AI-related sectors outlined by Fidelity also rose. The Taiwanese semiconductor manufacturing company’s stock, one of the world’s largest The major contract foundry and Nvidia supplier are up more than 50% in the past year. Meanwhile, South Korean memory chip giants Samsung and SK Hanks are up 25% and nearly 100%, respectively. Training large language models like ChatGPT to take action and generate human-like responses to user cues requires memory chips. Other indirect beneficiaries such as AI server and chip device providers also featured prominently. Gains seen. Shares of Nasdaq-listed Super Microcomputer, a provider of high-end AI servers for data centers, rose about 1,175 percent, and shares of Dutch chip equipment maker ASML, which is key to making chips for TSMC. provides lithography machines, has increased by 53. Last year, %Fidelity also said it was worth considering software and services companies. “Unlike consumers who can adopt new technologies very quickly, the adoption process in businesses is very slow. This is where these companies can help in areas such as data, integration and governance services,” the report said. Customer services firms, business process outsourcing and music content companies could also present opportunities, Fidelity said, as they “embrace and adopt AI.” “Leaders and enablers of digitization in the manufacturing, industrial and construction sectors, where technology is still under-penetrated, are looking interesting,” the report said. “We also believe that design software companies have an important role to play in the long term.”
