Microsoft, Alphabet And Meta's Raised AI Capex Outlook Could Benefit These JPMorgan Stock Picks
Portfolio Pulse from Surbhi Jain
Microsoft, Alphabet, and Meta's increased investments in AI and cloud capex are expected to benefit Arista Networks, Coherent Corp, Dell Technologies, Lumentum Holdings, Flex Ltd., and Jabil Inc., according to a JPMorgan report. This investment surge indicates a strong year ahead for data center capex, with industry growth forecasts for data center investments from top CSPs now in the mid-teens range for 2024. AI-focused ETFs like BOTZ, AIQ, and ROBO are also anticipated to see positive impacts.
April 26, 2024 | 7:37 pm
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POSITIVE IMPACT
Global X Artificial Intelligence & Technology ETF (AIQ) is set to benefit from the heightened investments in AI infrastructure by major tech companies.
AIQ's investment focus on artificial intelligence and technology sectors makes it a likely beneficiary of the increased AI and cloud capex investments by Microsoft, Alphabet, and Meta.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Arista Networks is poised to benefit from increased AI and cloud capex investments by major tech firms, as highlighted by JPMorgan.
Arista Networks' direct involvement in providing cloud service infrastructure positions it to benefit from the increased expenditures in AI and cloud by Microsoft, Alphabet, and Meta.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Global X Robotics & Artificial Intelligence ETF (BOTZ) is anticipated to see positive impacts from the increased focus on AI infrastructure by tech giants.
The ETF's focus on robotics and artificial intelligence sectors positions it to gain from the increased AI and cloud capex investments by Microsoft, Alphabet, and Meta.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Coherent Corp is identified by JPMorgan as a beneficiary of the surge in AI and cloud capex investments by leading tech companies.
Coherent Corp's relevance in the AI-levered cloud service provider market makes it a prime candidate to benefit from the increased investments by Microsoft, Alphabet, and Meta.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Dell Technologies is expected to see benefits from the increased AI and cloud capex investments by major tech firms, as per JPMorgan's analysis.
Dell Technologies' involvement in providing essential technology and infrastructure for AI and cloud services aligns it with the beneficiaries of increased capex by Microsoft, Alphabet, and Meta.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Flex Ltd. is among JPMorgan's picks to benefit from the surge in AI and cloud capex investments by major technology companies.
Flex Ltd.'s involvement in the supply chain for AI and cloud services positions it to gain from the increased investments by Microsoft, Alphabet, and Meta.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Jabil Inc. is expected to benefit from the increased AI and cloud capex investments by leading tech firms, according to JPMorgan.
Jabil Inc.'s role in the manufacturing and supply chain for AI and cloud services aligns it with the beneficiaries of the capex increases by Microsoft, Alphabet, and Meta.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Lumentum Holdings is highlighted by JPMorgan as a company that will benefit from the increased investments in AI and cloud capex by leading tech firms.
Lumentum Holdings' strategic position in the market for AI-levered cloud services makes it a beneficiary of the capex increases by Microsoft, Alphabet, and Meta.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
ROBO Global Robotics & Automation Index ETF (ROBO) is expected to see gains from the increased focus on AI infrastructure investments by leading tech firms.
ROBO's focus on robotics and automation sectors aligns it with the beneficiaries of the increased AI and cloud capex investments by Microsoft, Alphabet, and Meta.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80