Artificial intelligence (AI) is advancing rapidly, with major tech companies taking part, and the opportunities are not monopolized by the Magnificent Seven.
“Every company is going to have to be an AI company,” said Ivan Feinseth, senior partner and CIO at Tigress Financial, during his appearance on Benzinga PreMarket Prep on Friday.
He quoted Tom Siebel, CEO of C3.ai, an enterprise AI application development platform, emphasizing that every company will have to deploy AI in some way, to track customer behavior, optimize supply chains, and increase business and employee efficiency.
Feinseth remarked, “This is going to be the next gold rush — like automation and electronics were in the 1970s, home computing in the 1980s, and the internet in 1990s and early 2000s.”
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The Role of ‘Hyperscalers’ and Smaller Companies
Feinseth holds stocks from what he calls the “hyperscalers” — companies capable of efficiently meeting vast rises in demand, including names like Amazon.com Inc, Alphabet Inc, and Microsoft Corp.
He also favors recently listed companies such as MongoDB, a database software developer that debuted in late 2017, Monday.Com, a project management software platform that went public in June 2021, and C3.ai, which had its IPO in December 2021.
As for the peril of AI posing an existential threat to job security, Feinseth shares that he holds Adobe Inc shares but does not foresee a scenario where a graphic designer loses their job to AI. He asserts, “A graphic designer is going to lose his or her job to a graphic designer using AI to be more efficient and more creative.”
Feinseth adds, “AI is going to increase operating efficiency, creativity, productivity, and job satisfaction. Yes, there is one caveat – that we’ve all seen Terminator – so we know what could happen. But overall, the trend of increased AI adoption is going to continue.”
Intel’s Growth Fueled By Foundry Investment
Feinseth also holds shares in Intel Corp, where he sees long-term growth potential, especially due to the company’s significant $20 billion investment in new foundries, despite its gains in 2023.
“This is important, especially as all the other companies in the world would like to move away from China and come back to the U.S.,” he said.
Feinseth added that “we’ve seen many chip manufacturers and users like Apple Inc and even Nvidia Corp who’ve said that they’re interested in Intel Foundry Services.”
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Photo IvanFeinseth/TigressFinancialPartners Geralt/Pixabay