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Barclays Identifies Global Stocks Poised to Benefit from AI Growth
Service Sector Companies Expected to Thrive in AI Evolution
Barclays has identified several global stocks that are expected to thrive as the usage of artificial intelligence-related services continues to evolve. While hardware and infrastructure giants like Nvidia and Microsoft are currently reaping the immediate benefits of the AI hype, Barclays believes that businesses in the service sector will have significant opportunities in the long term. Companies such as Telus and Capgemini, which provide customer service, digital strategy, and consultancy services, are projected to see their shares rise by 67% and 31%, respectively.
Asian Companies Lead the Way in AI Adoption
Barclays' list of "Global AI Winners" includes a number of Japanese and Taiwanese companies, with six stocks from each country. Taiwanese chip makers like TSMC, Gigabyte, Global Unichip, and Alchip are expected to benefit from the AI trend. Similarly, Japanese firms such as Lasertec and Tokyo Electron, which specialize in high-tech components, are also named as net beneficiaries of AI. SoftBank Group, with its investments in startups and technology firms, is seen as a long-term benefactor of AI.
European Companies Poised for AI Growth
Barclays also highlights European companies that have the potential to thrive in the AI era. German company SAP and UK-based Sage Group have vast amounts of data at their disposal, which is critical for enabling AI. Both companies provide their customers with various customer support, HR, and accounting tools. Amsterdam-based Adyen, a fintech and payment services company, stands to benefit from increased AI adoption as it has already incorporated AI into its fraud detection and customer support services. Dutch companies ASM and ASML, known for producing semiconductor chip manufacturing tools, are also named as net beneficiaries of the AI trend.
Barclays' analysis indicates that while hardware and infrastructure giants are currently enjoying the rewards of the AI revolution, there is significant potential for companies in the service sector, particularly in customer service, digital strategy, and consultancy, to profit from AI in the long term. Asian companies, especially those in Japan and Taiwan, are leading the way in AI adoption, with European companies also poised for growth. By investing in these identified stocks, investors can position themselves to take advantage of the increasing role of AI in various industries.
Conclusion - The Impact of AI Growth on New Businesses
Unleashing Opportunities for Service Sector Startups
Barclays' identification of global stocks poised to benefit from the growth of artificial intelligence presents a compelling case for new businesses in the service sector. While established hardware and infrastructure giants presently dominate the AI landscape, Barclays predicts long-term opportunities for startups in customer service, digital strategy, and consultancy. This is particularly promising for new ventures seeking to leverage AI technologies and services to meet evolving market demands. By capitalizing on this trend, startups can position themselves to thrive in the AI evolution and potentially achieve significant growth and market dominance.
Asian Companies Leading the Charge
The significant presence of Japanese and Taiwanese companies among Barclays' "Global AI Winners" underscores the role of Asia in driving AI adoption. For new businesses looking to enter the AI market, these Asian companies can serve as beacons of success and inspiration. Their expertise in chip making, high-tech components, and technology investments positions them at the forefront of the AI revolution. By emulating their strategies and incorporating similar technological advancements, new ventures can align themselves with the AI stronghold in Asia and tap into the burgeoning opportunities presented by the AI wave.
European Companies Ready to Surge
In addition to Asian dominance, Barclays' analysis highlights the potential for European companies to thrive in the AI era. Businesses like SAP and Sage Group, armed with vast amounts of data critical for AI enablement, are set to tap into the AI market by providing customer support, HR, and accounting tools. This presents an exciting opportunity for new European startups to emulate their success, leveraging data-driven approaches to carve their niche in the AI ecosystem. Fintech and payment services company Adyen, alongside semiconductor chip manufacturing tools producers ASM and ASML, exemplify the range of industries ready to benefit from AI adoption. New businesses within these sectors can seize the moment, incorporating AI technologies to enhance their offerings and gain a competitive edge.
Through the lens of Barclays' analysis, it is evident that the AI growth story has numerous implications for new businesses. The evolving service sector, the leadership of Asian companies, and the readiness of European companies to surge present attractive prospects for enterprising startups. By embracing AI technologies and aligning themselves with these global trends, new businesses can position themselves at the forefront of the AI revolution, capitalizing on the increasing role of AI in various industries and setting the stage for transformative success.
Article First Published at: https://www.cnbc.com/2023/07/10/forget-the-ai-hype-barclays-names-global-stocks-it-says-are-winners-for-the-long-term.html