A number of businesses are vying to take advantage of ChatGPT’s viral moment, and Bank of America strategists have highlighted 20 equities that are well-positioned to profit from the heightened enthusiasm surrounding artificial technology.
As a partial owner of ChatGPT parent company OpenAI, Microsoft was an obvious choice to lead the picks in the bank’s note to clients on Tuesday. The note praised Microsoft for its “recent success with AI-driven offerings” and the benefits the technology will bring to its Bing search engine. The analysts set a $300 price target for the company’s stock, indicating a 20% increase.
The strategists, led by Eric Lopez, also advise investing in Alphabet, the parent company of Google, Facebook, and Meta, as well as Chinese Baidu. These companies are Microsoft and OpenAI’s main rivals in the generative technology market, and they have all recently announced unit expansions.
American technology behemoths Adobe, Arista Networks, Nvidia, Palantir, and Shutterstock were named by analysts as companies that either already use or contribute the core technology for artificial intelligence.
Apple, the largest company in the world by market capitalization, is watching its major tech competitors battle it out over AI, but Wamsi Mohan of Bank of America predicts that if they put Google and Microsoft up for bid to be the default search engine on Apple devices, Apple could reap billions more in licensing fees every year.
According to Bank of America, other companies to consider buying are the Asian technology companies Advantest, AIChip, Appier Group, Hoya, NICE, Qi An Xin, Taiwan Semiconductor, the German software juggernaut SAP, the Dutch chipmaker ASML, and the British analytics behemoth RELX.