Semiconductor stocks and technology behemoths get all the acclaim when it comes to artificial intelligence, but RBC Capital Markets is offering up some alternate ways to play the theme. Demand for AI has launched the stock market toward new highs this year, boosting leading AI chipmaker Nvidia by nearly 155% this year and accelerating its market cap from $2 trillion to $3 trillion in a matter of months. Other technology giants have followed suit, with Amazon closing above a $2 trillion market value for the first time ever last month.
Against this backdrop, RBC Capital Markets highlighted some of its favorite ways to play the theme beyond the classic winners, viewing AI as the "next disruptive mega-trend." The firm also suspects that the market is underestimating how disruptive the technology will be. "We think GenAI has the potential to disrupt the entire ecosystem and will significantly change the ways businesses, communities, and people interact with one another and with machines," wrote the firm's equity research team.
"And while we think this will take several years to play out, the proliferation of GenAI is likely to re-shape the generations ahead similar to the way the PC, Internet, mobile phones, cloud computing or social media has impacted us today," the group added. Here are some of the stocks that made the list: It is no surprise that Meta Platforms made the cut, with shares of the Facebook parent up 52% this year as the company rolls out new AI features and tools ..