Getty Images; Jenny Chang-Rodriguez/BI
- AI investment potential remains high, akin to 1996 in the internet's rise, says Bank of America.
- Adoption is expected to accelerate, with early-stage use from 44% of S&P 500 firms that touted AI.
If you think it's too late to invest in AI because the industry is too rich, think again.
The technology is expected to change the global economy. One way to think about it is that we are in about 1996 relative to the internet, according to Bank of America. Considering how much the web has grown since then, this analogy means the potential gains from AI stocks aren't yet fully priced in.
The trajectory of gains is steep: in the past, disruptive technologies took 15 to 30 years to reach widespread adoption. For AI, this process is expected to be accelerated over the next 3-5 years, read an August 5 note. As for the widespread use of AI, the bank forecasts early-stage adoption will begin in 2025 for 44% of S&P 500 companies that discussed AI during their second-quarter earnings.
There's a wide range of ways investors can gain exposure to artificial intelligence, including by buying up semiconductor or software stocks or utility companies that supply data centers, among other things.
Investors can also choose to take the stock-picking route or buy ETFs packaged with AI stocks.
The bank favors three funds in the latter option. They include the Global X Robotics and Artificial Intelligence ETF (BOTZ) for pure AI 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.
As for single stocks, Bank of America compiled feedback from 130 fundamental equity analysts to get a list of their top "buy-rated" American companies with AI exposure. These names are expected to see market-value expansion as they integrate the technology into their businesses. They are listed below in alphabetical order.
1. Accenture
Ticker: ACN
Industry Group: Software
Market Cap ($billion): $205
2. Adobe
Ticker: ADBE
Industry Group: Software
Market Cap ($billion): $238
3. Advanced Micro Devices
Ticker: AMD
Industry Group: Semis
Market Cap ($billion): $226
4. Allstate
Ticker: ALL
Industry Group: Insurance
Market Cap ($billion): $45
5. Alphabet
Ticker: GOOGL
Industry Group: Media & Ent.
Market Cap ($billion): $2,097
6. Amazon
Ticker: AMZN
Industry Group: Cons. Discr. D&R
Market Cap ($billion): $1,907
7. Amphenol
Ticker: APH
Industry Group: Tech Hardware
Market Cap ($billion): $76
8. Apple
Ticker: AAPL
Industry Group: Tech Hardware
Market Cap ($billion): $3,347
9. Applied Materials
Ticker: AMAT
Industry Group: Semis
Market Cap ($billion): $170
10. Baker Hughes
Ticker: BKR
Industry Group: Energy
Market Cap ($billion): $38
11. Broadcom
Ticker: AVGO
Industry Group: Semis
Market Cap ($billion): $699
12. Cadence Design Systems
Ticker: CDNS
Industry Group: Software
Market Cap ($billion): $71
13. Caterpillar
Ticker: CAT
Industry Group: Capital Goods
Market Cap ($billion): $169
14. CH Robinson Worldwide
Ticker: CHRW
Industry Group: Transportation
Market Cap ($billion): $11
15. Cigna
Ticker: CI
Industry Group: HC Equip & Svcs
Market Cap ($billion): $98
16. Coca-Cola Europacific Partners
Ticker: CCEP
Industry Group: Food & Bev
Market Cap ($billion): $34
17. Darden Restaurants
Ticker: DRI
Industry Group: Cons. Svcs
Market Cap ($billion): $17
18. Dell Technologies
Ticker: DELL
Industry Group: Tech Hardware
Market Cap ($billion): $79
19. Delta Air Lines
Ticker: DAL
Industry Group: Transportation
Market Cap ($billion): $28
20. Digital Realty Trust
Ticker: DLR
Industry Group: REITs
Market Cap ($billion): $49
21. DraftKings
Ticker: DKNG
Industry Group: Cons. Svcs
Market Cap ($billion): $18
22. Dycom Industries
Ticker: DY
Industry Group: Capital Goods
Market Cap ($billion): $5
23. Elevance Health
Ticker: ELV
Industry Group: HC Equip & Svcs
Market Cap ($billion): $123
24. Equinix
Ticker: EQIX
Industry Group: REITs
Market Cap ($billion): $74
25. Exact Sciences
Ticker: EXAS
Industry Group: Biopharma & Life Sci
Market Cap ($billion): $8
26. Ford Motor
Ticker: F
Industry Group: Autos
Market Cap ($billion): $44
27. GE HealthCare Technologies
Ticker: GEHC
Industry Group: HC Equip & Svcs
Market Cap ($billion): $38
28. General Motors
Ticker: GM
Industry Group: Autos
Market Cap ($billion): $50
29. Guardant Health
Ticker: GH
Industry Group: HC Equip & Svcs
Market Cap ($billion): $4
30. Halliburton
Ticker: HAL
Industry Group: Energy
Market Cap ($billion): $30
31. Hartford Financial Services
Ticker: HIG
Industry Group: Insurance
Market Cap ($billion): $32
32. Hilton
Ticker: HLT
Industry Group: Cons. Svcs
Market Cap ($billion): $55
33. HubSpot
Ticker: HUBS
Industry Group: Software
Market Cap ($billion): $25
34. Hyatt Hotels
Ticker: H
Industry Group: Cons. Svcs
Market Cap ($billion): $15
35. Intuitive Surgical
Ticker: ISRG
Industry Group: HC Equip & Svcs
Market Cap ($billion): $158
36. KLA
Ticker: KLAC
Industry Group: Semis
Market Cap ($billion): $105
37. Kraft Heinz
Ticker: KHC
Industry Group: Food & Bev
Market Cap ($billion): $41
38. Labcorp Holdings
Ticker: LH
Industry Group: HC Equip & Svcs
Market Cap ($billion): $18
39. Lam Research
Ticker: LRCX
Industry Group: Semis
Market Cap ($billion): $117
40. Marriott International
Ticker: MAR
Industry Group: Cons. Svcs
Market Cap ($billion): $68
41. Marvell Technology
Ticker: MRVL
Industry Group: Semis
Market Cap ($billion): $56
42. Meta
Ticker: META
Industry Group: Media & Ent.
Market Cap ($billion): $1,181
43. Micron Technology
Ticker: MU
Industry Group: Semis
Market Cap ($billion): $120
44. Microsoft
Ticker: MSFT
Industry Group: Software
Market Cap ($billion): $3,174
45. MongoDB
Ticker: MDB
Industry Group: Software
Market Cap ($billion): $19
46. Netflix
Ticker: NFLX
Industry Group: Media & Ent.
Market Cap ($billion): $269
47. NVIDIA
Ticker: NVDA
Industry Group: Semis
Market Cap ($billion): $2,745
48. PepsiCo
Ticker: PEP
Industry Group: Food & Bev
Market Cap ($billion): $238
49. Progressive
Ticker: PGR
Industry Group: Insurance
Market Cap ($billion): $125
50. Prologis
Ticker: PPLD
Industry Group: REITs
Market Cap ($billion): $115
51. Quest Diagnostics
Ticker: DGX
Industry Group: HC Equip & Svcs
Market Cap ($billion): $16
52. Salesforce
Ticker: CRM
Industry Group: Software
Market Cap ($billion): $251
53. Schlumberger
Ticker: SLB
Industry Group: Energy
Market Cap ($billion): $68
54. ServiceNow
Ticker: NOW
Industry Group: Software
Market Cap ($billion): $165
55. Synopsys
Ticker: SNP
Industry Group: Software
Market Cap ($billion): $84
56. Tesla
Ticker: TSLA
Industry Group: Autos
Market Cap ($billion): $742
57. Texas Roadhouse
Ticker: TXRH
Industry Group: Cons. Svcs
Market Cap ($billion): $12
58. Thomson Reuters
Ticker: TRI
Industry Group: Commercial Svcs
Market Cap ($billion): $73
59. United Airlines
Ticker: UAL
Industry Group: Transportation
Market Cap ($billion): $15
60. UnitedHealth Group
Ticker: UNH
Industry Group: HC Equip & Svcs
Market Cap ($billion): $522
61. Walmart
Ticker: WMT
Industry Group: Cons. Staples D&R
Market Cap ($billion): $560
62. Welltower
Ticker: WELL
Industry Group: REITs
Market Cap ($billion): $67
