Know The Stocks Poised To Benefit From AI Buzz 

The latest buzz on Wall Street suggests that Microsoft and Alphabet are the two companies that are poised to benefit most from the new buzz surrounding artificial intelligence, according to Morgan Stanley.

‍

As a result of the generative AI push, Erik Woodring identified a range of IT hardware stocks poised to benefit from the demand for more powerful and faster computing and data storage.

‍

“It is our opinion that in the near term, our universe is not going to benefit in any material way from this project," he wrote in a note published Friday. “The proliferation of Generative AI, however, might have a variety of second derivative effects on IT Hardware companies over the coming years due to the proliferation of Generative AI."

‍

Woodring touted Apple's A-series and M-series chips alongside the company's own silicon developments as some of the key AI beneficiaries, particularly Apple's A-series chips. Another demonstration of Apple's progress in AI can be found in the components within its chips which are used to power features such as Face ID, which are based on machine learning.

‍

“With AI interest increasing and smartphone users running more AI-intensive applications, these prior investments could position Apple as a hardware leader,” Woodring said.

‍

Another company that has benefited from the "forefront of AI" for decades is IBM, according to Woodring. Even though IBM is most widely known for its Watson computer, it has been harnessing its AI capabilities in recent years to assist companies with automating tasks and creating virtual assistants in order to enhance employee productivity.

‍

Rather than creating standalone products, Woodring expects IBM to incorporate AI into its security and automation software in the future.

‍

“Moreover, RedHat OpenShift and containers have the potential to improve latency by moving AI applications between cloud and on-premise environments,” he wrote.

‍

The report identified Dell Technologies as a possible beneficiary long-term if demand for central processing units powered by artificial intelligence grows, along with Apple and IBM.

‍