Since the launch of ChatGPT last November, artificial intelligence (AI) has been a major focus of Wall Street investors.
It has also been a major driver for the shares of AI-related companies such as Nvidia to skyrocket.
However, while many companies are focusing on AI development efforts, investors are also not missing the opportunity to see the potential of stocks that benefit from the technology.
For example, a subset of technology firms that could benefit from the rise of AI-enabled automation, especially in the near term, include information technology service vendors.
Morgan Stanley analysts said clients will continue to rely on vendors who provide advice and support to help understand the data landscape and how to leverage AI.
Morgan Stanley expects these 5 stocks to be the main beneficiaries of AI development.
1.Capgemini (market capitalization: $34 billion)
A strong global position around consulting and system integration makes the company well-positioned to help customers in AI.
Has demonstrated its ability to navigate offshore waves, and moved early to build AI capabilities.
2.Accenture (market capitalization: $202 billion)
A $3 billion investment over three years in its Data & AI practice to help clients across all industries rapidly and responsibly advance and use AI to achieve growth.
3. EPAM (market capitalization: $13 billion)
A focus on high-end application engineering enables it to build and support the infrastructure needed to drive enterprise-wide AI adoption.
4.Globant (market capitalization: $7.8 billion)
A company focused on reinventing business through innovative technological solutions.
Leading specialist in digital transformation (DX) with deep 'blue-chip' client relationships.
5.Infosys (market capitalization: $65 billion)
Relatively high exposure to consulting and systems integration products, but less exposure to managed services/BPO than peers.
Good position in Digital (currently at 62% of total revenue).
