Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Goldman says these 9 discounted stocks are part of an elite group at the forefront of boosting their sales with AI

Feb 20, 2025 - businessinsider.com
Goldman Sachs recommends investing in "Phase 3" AI companies, which are businesses integrating AI into their revenue models, as they begin to outperform AI infrastructure stocks like Nvidia. Despite a low current adoption rate of AI, enthusiasm is growing, with 50% of S&P 500 companies mentioning AI in earnings calls by Q4 2024. The bank suggests that 2025 could be pivotal for AI monetization, as inference costs decrease and more companies adopt AI technologies.

Nine stocks identified by Goldman Sachs as part of this "Phase 3" group have seen price declines in 2024 but are expected to grow in 2025. These include companies like Dynatrace, Uber, and GitLab, which are innovating and integrating AI into their business models. The focus is on software and IT services industries, with applications in human resources, customer relationship management, and cybersecurity. Despite recent market challenges, these companies are poised for growth as AI becomes more integral to their operations.

Key takeaways:

  • Goldman Sachs recommends investing in "Phase 3" AI companies that are integrating AI into their business models, as they are trading at a discount compared to AI infrastructure stocks.
  • Despite the increased mention of AI in earnings calls, actual adoption remains low, with only 6% of US companies currently incorporating AI into their business models.
  • AI beneficiaries have started to outperform AI infrastructure companies, and inference costs are expected to decrease, opening opportunities for smaller companies.
  • Software and IT services companies are leading the adoption of AI, with significant growth expected in areas like human resources, customer relationship management, and cybersecurity.
View Full Article

Comments (0)

Be the first to comment!