BofA has identified publicly traded companies that will benefit from the major changes underway in the world, in themes as broad as artificial intelligence, weight loss drugs, batteries and electric vehicles or robotics.
Bank of America has published a list of 50 companies that its analysts see as future winners from the current transformations of the world. An exercise which of course concerns the companies which exist and which are listed on the stock exchange, even if other players will probably emerge. “It has never been more important to understand the breakthroughs that are on the verge of commercialization. Over the past 100 years, 3% of them have generated approximately 100% of global net wealth“, according to the American bank. Moreover, the changes are rapid and can also be seen through the lens: a third of the S&P 500 has been replaced since 2015.
There is also a bias, from my point of view, that the huge, mature and wealthy digital platforms win everything. Currently, regulators are overwhelmed by the speed with which tech giants are spending hundreds of millions to eliminate competition helping young shoots to break through. Just look at Microsoft’s investments in Mistral or Inflection AI. By bringing together the best technologies and/or the best talents, these groups reduce the risk of being overwhelmed and increase the probability that they will be among the minority of winners.
BofA has defined seven categories of sectors that are at the center of disruption: AI for All / Beyond Moore’s Law / Robotics / Network Capabilities / Health / Energy & Materials and Mobility.
Here are the preferred companies of the bank’s analysts for these themes:
- AI for everyone! : Microsoft (OpenAI, OpenAI Sora, Copilot). Alphabet (AI Search, Gemini, DeepMind).
- “Moore’s law is not enough”: IBM (quantum computers). Apple (Vision Pro spatial computing). Akamai (edge computing). Nvidia (GPUs). Cadence / Synopsys (EDA software). ASML (EUV lithography). ASM International (atomic layer deposition). Taiwan Semiconductor (fab seedling). SK Hynix (high bandwidth memory). Alchip (3P chip design).
- A robot and an AI enter a bar…: Amazon / Fanuc / ESTUN (industrial robots). Intuitive Surgical / Procept BioRobotics (surgical robotics). Rockwell (software for industrial robots). ABB (software for robotics, electrification). Dassault Systemes (software for digital twins).
- Bandwidth scarcity: Qualcomm (seedling AI smartphone). Equinix (data centers). Arista (cloud network).
- From GPT to GLP-1: Eli Lilly / Novo Nordisk (new generation oral GLP-1). Caribou (CRISPR genes). Guardant Health (liquid biopsy). Recursion / Schrödinger / BioXcel / Exscientia (AI drug discovery). UnitedHealth (AI healthcare). Siemens Healthineers / FUJIFILM (AI diagnostics and imaging).
- Energy and materials meet: Eaton / Aspen Tech / Siemens Energy (grid technology). Vertiv (data center cooling). National Grid, EON (energy network). Prysmian (T&D cables). Redeia (electricity network, satellites, optical fibers). First Solar (next generation solar energy).
- The mobility of the future: Infineon (EV & AV, power chips). STMicroelectronics (SiC #1 chips, Mobileye partnership). LG Energy Solution (high nickel and LFP batteries). BYD (EV). Yadea (E2W, graphene batteries).
To go further, Zonebourse subscribers can tinker with even larger selections of stocks in our selection tools, from our exclusive thematic lists, in particular these:
