The Evolving AI Narrative: From Semis to Software

Who Could Be the Next Winners in the AI Revolution?

The next wave of AI winners will likely span industries that incorporate AI into their operations and products. Cloud computing, cybersecurity, healthcare, and generative AI remain key areas of focus.

1. Cloud Providers

Cloud infrastructure is critical for storing, processing, and deploying AI solutions. These giants stand to benefit as AI adoption grows.

• Microsoft (MSFT): Integrating OpenAI’s models into Azure, driving enterprise AI adoption.
• Amazon (AMZN): AWS’s suite of AI and machine learning tools like SageMaker continues to lead.
• Oracle (ORCL): Positioned well with its AI-powered cloud solutions and strong focus on enterprise clients.
• Alphabet (GOOGL): Google Cloud leverages its deep AI expertise and market-leading research.

2. AI-Powered Cybersecurity

The surge in AI adoption raises the stakes for protecting systems and data, making AI-driven cybersecurity solutions a critical growth area.

• CrowdStrike (CRWD): Pioneering predictive threat detection with AI.
• Palo Alto Networks (PANW): Expanding its use of AI to enhance network security and threat prevention.

3. Generative AI Applications

Generative AI is transforming industries, from content creation to drug discovery, offering immense growth potential for enabling platforms.

• Adobe (ADBE): Its Firefly tools cater to the growing demand for generative content creation.
• ServiceNow (NOW): Using generative AI to automate workflows and enhance productivity.

4. AI-Oriented SaaS and Data Companies

As AI adoption scales, SaaS and data companies providing the foundation for AI solutions are becoming indispensable.

• Snowflake (SNOW): Enabling data-driven AI applications with its robust platform.
• Palantir (PLTR): Operational AI and decision-making tools make it a standout in enterprise markets.

5. AI-Powered Healthcare

The healthcare sector is poised for disruption as AI transforms diagnostics, drug discovery, and personalized medicine.

• Intuitive Surgical (ISRG): AI-powered robotics enhance surgical precision.
• Moderna (MRNA): Using AI to accelerate vaccine development and mRNA innovations.

6. Hardware Beyond Semiconductors

AI requires a broader ecosystem of specialized hardware beyond semiconductors, creating new opportunities.

• Arista Networks (ANET): Providing networking solutions tailored for AI-scale workloads.
• Pure Storage (PSTG): Gaining traction for its AI-optimized storage solutions.

7. AI-Powered Consumer Products

As AI integrates into consumer technologies, companies leveraging AI in smart devices, AR/VR, and autonomous vehicles stand to gain.

• Apple (AAPL): Innovating AI-driven features in its ecosystem and exploring AR/VR.
• Tesla (TSLA): Advancing AI in autonomous driving and energy solutions.

ETF Opportunities

• For Semis Exposure: Consider ETFs like SOXX (iShares Semiconductor ETF) or SMH (VanEck Semiconductor ETF).
• For AI Software: Look at funds like AIQ (Global X Artificial Intelligence & Technology ETF) or BOTZ (Global X Robotics & Artificial Intelligence ETF).
• For Cloud Growth: Consider CLOU (Global X Cloud Computing ETF)
• For AI-driven Cybersecurity: HACK (ETFMG Prime Cyber Security ETF)
• For Automation and Robotics Exposure: ROBO (Global X Robotics & AI ETF)

By focusing on these next-wave beneficiaries, investors can position themselves to capitalize on AI’s transformative potential across the economy.

Saxo's AI theme basket comprises a selection of publicly traded companies that have a substantial portion of their business models tied to AI growth.