According to Goldman Sachs, after the recent breakthrough for generative AI, investors are looking for signs that new deep learning tools and techniques are filtering through to more industries. The shift from the excitement phase into the deployment phase is expected to continue, eventually helping to raise global productivity and potentially helping address challenges coming from unfavorable demographics in some countries 

 

The semiconductor companies that produce equipment for semiconductor manufacturing — the hardware underlying the entire AI buildout — are in focus. Capital expenditure on the most advanced equipment used to produce semiconductors is growing rapidly. This is driven by both advancements in AI, which necessitate new chip designs, and the reshoring of semiconductor production by developed countries to help the resilience of their supply chains

 

Healthcare is an industry to watch given AI’s potential to transform complex biological data into meaningful insights, with potential implications for drug development, medical technology, and digital healthcare. AI algorithms can distinguish real heart attacks from false alarms with astonishing accuracy. An AI-powered smart implant for knee procedures can detect patients’ motion post-surgery, delivering real-time recovery insights to medical staff. Goldman Sachs sees some of the most compelling AI-related investment opportunities in drug development for precision medicine, tech-enabled procedures, and digital healthcare

 

Cybersecurity companies are also adopting cutting-edge AI techniques to automate the identification of potential threats and real-time response to security incidents. Digital attacks are becoming increasingly sophisticated, frequent, and damaging

 

Recent AI advances and growing adoption of cloud computing, meanwhile, are fueling demand for increasingly advanced data centers. On the software side, enterprise spending on digitalization continues to increase