April 23, 2024, 11:08 a.m.
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Brief news summary

Evercore ISI is optimistic about the potential of the artificial intelligence (AI) revolution and believes there are promising investment opportunities to be found. They expect AI adoption to continue growing due to factors such as an aging population and a shrinking workforce. To take advantage of this trend, Evercore ISI suggests focusing on companies in the Russell 1000 index that are increasingly associated with AI and have positive revisions in their earnings-per-share. These companies should also have a discounted PEG ratio compared to the overall index. In addition to well-known tech giants like Nvidia, Alphabet, Amazon, and Meta, Evercore ISI recommends considering Uber Technologies, Goldman Sachs, and Booking Holdings for long-term investments with a focus on AI. To manage risks, Evercore ISI advises combining these investments with a QQQ December expiration Put Spread Collar strategy, which can help offset potential market downturns. They also recommend practicing patience when purchasing stocks with strong momentum. Recent financial results demonstrate the success of Uber Technologies' AI-driven platform, surpassing expectations. Goldman Sachs, a company known for mentioning AI frequently, expects increased demand for AI infrastructure and has shown better-than-expected profits. Booking Holdings has also achieved positive outcomes by effectively utilizing AI in their customer service operations, leading to improved productivity.

According to Evercore ISI, the artificial intelligence (AI) revolution is in its early stages, presenting investment opportunities. While generative AI has gained attention, its adoption remains low, with less than 5% of U. S. firms utilizing AI. However, the potential for productivity growth is significant, comparable to past technological revolutions.

The aging population and dwindling workforce further emphasize the demand for efficiency, impacting various sectors. Despite a modest decline in AI adoption in recent months and semiconductor corrections, several stocks trading at a discount have been identified as potential long-term investments, including Uber Technologies, Goldman Sachs, and Booking Holdings. Evercore ISI suggests pairing these stocks with a put spread collar strategy to limit losses amidst corrections. Patience is also advised when purchasing high-momentum stocks.


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