If you’ve been wondering how to trade the AI craze that ChatGPT is driving, the researchers at Baird say they’ve got you covered.
“The companies on our list have advanced AI capabilities, and we believe they will benefit from the ‘tidal wave’ of AI-powered applications,” Colin Sebastian, senior research analyst at Baird, and his team wrote in a note to investors.
The list of the top 50 AI and ML leading public company ideas ranges from small companies to huge corporations and falls into a variety of categories.
Amazon (AMZN), Alibaba (BABA), Alphabet (GOOG), and Pinterest (PINS) are the four giants listed under “Internet,” while Nvidia (NVDA) is the pick for “Storage and Semiconductors.”
The most outlandish approaches when it comes to AI investing stem from the “Human Capital Technology & Solutions” category, which identifies stocks such as ADP (ADP), Ceridian HCM Holding (CDAY), Paycom Software (PAYC), and Paychex (PAYX). , and Paylocity Holdings (PCTY).
The list, compiled by senior research analyst Marc Marcon, includes the following highlights:
a work day (memoirs)
“WDAY has always been a pioneer in the field of AI/Machine Learning [artificial intelligence/machine learning]as one of the first software companies to focus heavily on and invest in,” wrote Marcon. “During its recent Investor Day, WDAY emphasized that machine learning is being built into every element of the platform.”
The analyst also highlights the HR firm’s relationships with Microsoft and Google, both leaders in AI/ML.
Automatic processing of data (ADP)
The payroll company began discussing its interest in artificial intelligence and machine learning several years ago as a way to leverage its data to add value to customers.
“Data is one of the most important inputs to developing and maintaining a successful AI/ML program, and ADP and PAYX have the most data of any payroll provider, collectively paying one in every four private sector payrolls in the United States,” Marcon writes. .
Robert Half International (RHI)
The recruiting firm already has the most powerful AI/ML capabilities of its generic counterparts.
“RHI has a proprietary database of over 30 million candidates, and RHI uses AI/Machine Learning to find the best matching candidates for job openings, materially improving recruiter productivity,” Marcon writes.
He added, “Additional opportunities include the use of artificial intelligence/machine learning and chatbots to communicate with the candidate and customers, which could reduce service and sales costs.”
Marcon added one negative note for all recruiting and recruiting organizations: some of the jobs these companies fill “at some point in the future could be remotely automated by AI/ML-enabled software.”
“Many staffing firms are moving up the value chain to reduce their exposure to positions that could be replaced through automation,” the analyst wrote.
Ennis is a Senior Business Correspondent at Yahoo Finance. Follow her on Twitter at @employee
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