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Top 62 AI Stocks Among 3,400 Companies: Bank of America

Posted on by darion

  • According to Bank of America, the investment potential in artificial intelligence remains high, comparable to 1996, when the Internet was developed.
  • Adoption of the technology is expected to accelerate, with early use by 44% of S&P 500 companies that touted AI.
  • Investors can explore AI through semiconductors, software, ETFs or top-rated stocks.

If you think it’s too late to invest in AI because the industry is too rich, think again.

This technology is expected to transform the global economy. According to Bank of America, we live in circa 1996 when it comes to the Internet. Given the development of the web since then, this analogy means that the potential gains from AI stocks have not yet been fully realized.

The profit trajectory is steep: In the past, breakthrough technologies took 15 to 30 years to reach widespread adoption. In the case of artificial intelligence, this process is expected to accelerate over the next 3-5 years, read the August 5 note. In terms of widespread use of AI, the bank forecasts early adoption to begin in 2025 for the 44% of S&P 500 companies that discussed AI in their second-quarter results.

Investors can gain exposure to artificial intelligence in a number of ways, including by purchasing shares of semiconductor or software companies or utilities that provide data centers.

Investors can also choose to pick stocks or buy AI stock ETFs.

In the second variant, the bank favors three funds. These include the Global X Robotics and Artificial Intelligence ETF (BOTZ) for AI-only stocks, the KraneShares Artificial Intelligence and Technology ETF (AIQ) for diversified exposure, and the iShares US Tech Breakthrough Multi-Sector ETF (TECB) for broader exposure .

In terms of individual stocks, Bank of America compiled views from 130 fundamental equity analysts to arrive at a list of U.S. companies with the most exposure to AI with a “buy” rating. These names are expected to see an increase in market value as they incorporate technology into their businesses. They are listed below in alphabetical order.