AI Revolution: The Surprising Winners Beyond Technology Giants

Investors are desperately seeking safe ways to profit from the current AI boom, which has significantly moved the US stock market in recent months. The renowned investment bank Goldman Sachs recently published an analysis highlighting which economic sectors outside of the technology sector could benefit from the AI frenzy. This report emphasizes that AI tools can help companies increase productivity and reduce labor costs. It specifically illustrated how companies from the utilities, industrial, retail, and healthcare sectors could benefit from this technology. David Kostin, Chief Strategist for US Equities at Goldman Sachs, divided market movements into four key phases. The first phase focused on NVIDIA, the leading chip manufacturer for AI data centers. The second phase will involve building AI infrastructures, including semiconductor technology, data centers, and cloud services. Stocks from these industries have so far outperformed the benchmark indices. Kostin further explained that the third phase affects companies that integrate AI into their products to boost sales. However, these firms have recently lost ground to specialized AI stocks. The fourth phase concerns companies that achieve productivity gains by introducing AI. Kostin sees untapped potential here, particularly confirmed by the industrial sector. Since the beginning of 2023, industrial stocks have gained nearly 30% in value, especially those strongly linked to AI. In the fourth quarter of 2023, over 30% of industrial companies mentioned AI in their earnings reports, compared to only 10% in the previous year's period. Looking at the bond market, interest in non-technology AI stocks remains stable. Special attention is given to companies where hedge funds are increasingly investing, as this is often an indicator of above-average market performance. A strategy provided by Goldman Sachs has shown that mimicking the top picks of leading hedge funds has yielded a 275% return since May 2014, 150 percentage points more than the benchmark index. The New York Times Company is cited as a fitting example. The media company extensively uses AI for content recommendations, automation in journalism, content moderation, and data analysis. Wall Street remains optimistic: Citi recently raised the stock's price target from $57 to $63 and confirmed the buy recommendation, as the company now increasingly uses free funds for dividends and share buybacks. Overall, The New York Times ranks 19th on the list of 35 non-technology stocks with long-term investment potential. The stock continues to be viewed as a bullish investment, although analysts point out that other AI stocks might promise higher short-term returns.