- Valuation is still a risk for tech stocks in rate hike environment
- Look to diversify with use case upside
The herd mentality of the equity world was on show in the past month as major investors raced to buy shares in Nvidia (US:NVDA) after it announced sales of its artificial intelligence (AI)-friendly graphics processing units would far higher than forecast by analysts. But now the company is firmly in the top echelon of tech stocks and excess growth is priced in, where else can investors look?
Investment bank UBS has picked 180 companies it believes will be most impacted by AI. AI’s effect on cost bases, avenues for innovation and competitive intensity culminate with a list of predicted winners and losers.