Alright, folks, let’s dive into this AI talk. It’s no secret that artificial intelligence is making waves across markets, capturing everyone’s attention. But here’s the thing, savvy fund managers are starting to look beyond the usual tech suspects to spot potential winners in this game. And they’re onto something big.
According to PwC’s Global Artificial Intelligence Study, AI is gearing up to have a global impact worth a whopping $15 trillion in the next seven years. That’s no chump change, my friends. And here’s the kicker – with strategic investments in different AI technologies, PwC predicts a 45% boost in productivity and GDP potential by 2030. That’s like hitting the jackpot!
Now, in the recent reporting season, we saw big tech players like Alphabet and Microsoft rake in massive quarterly earnings. And you wanna know what fueled their success? It was those smart AI investments, my friends. We’re talking about $74.6 billion for Alphabet and $20.1 billion for Microsoft. That’s some serious dough!
But here’s the interesting part. Beyond these tech giants, Mary Manning, a portfolio manager at Alphinity Investment Management, has identified some medium-term winners in the AI sector. And we’re not talking about your typical tech nerds. We’re talking about network equipment company Arista, computer software company Cadence, and semiconductor company ASML. These are the unsung heroes, the infrastructure companies that are gonna shape the future in the next six to 24 months. Manning says they’re waiting for these companies to show their earnings potential before jumping in. It’s all about that timing, folks.
But guess what? Manning isn’t just focused on the tech space when it comes to AI winners. Oh no, she’s got her sights on players like Airbnb, online marketplace Mercado Libre, and even the good ol’ Bank of America. You see, BofA knows what’s up. They know that in today’s world, data is being created at an insane rate. We’re talking more data per hour now than what we used to create in an entire year just twenty years ago! That’s bananas, people. So, BofA is all about leveraging AI to analyze and interpret that mind-boggling amount of data. And trust me, they’re not the only ones.
Airbnb is also getting in on the AI action. They’re using predictive pricing, predictive searches, and customer profiling to up their game. They’re all about giving their customers the best experience possible. It’s all about that personal touch, my friends!
But Manning drops a truth bomb here. She says, and I quote, “some of the biggest winners are going to be outside the tech sector.” Yeah, that’s right! We’re talking about the banks, financial institutions, industrials, and energy companies. They’re all incorporating AI into their business models to drive up revenue and cut costs. But hold your horses, folks, it’s not gonna happen overnight. We’re looking at a 2025-2030 earnings story here.
Now, let’s hear what Ray David, portfolio manager at Blackwattle Investment Partners, has to say. He’s got some wisdom to drop. According to him, adoption and technology evolution are moving fast, but we gotta be careful. Sometimes, the hype can outpace the actual economic facts. It’s a long game, my friends.
David points out some ASX companies that are smartly using AI tools to their advantage. We’re talking supermarkets predicting stock and reducing theft, online classifieds using dynamic pricing to boost sales, and general insurance getting better at risk pricing and claims prediction. These companies may not seem like your typical AI beneficiaries, but they know a good thing when they see it. They’re ahead of the game, folks.
So, here’s the bottom line. The winners in this AI revolution are gonna be those companies that can improve customer outcomes, deliver higher returns, and build those competitive advantages. They’re the ones extending their moat, my friends. And mark my words, they’ll be reaping the rewards of this AI madness. It’s gonna be one hell of a ride!