The artificial intelligence revolution is progressing rapidly, but it is still in its early stages.
The big beneficiaries of this trend are currently AI infrastructures. Tomorrow, other industries will benefit from these advances, including robotics, automation, drug discovery and cybersecurity. Given the energy needs of AI, power grid builders and energy producers close to data centers are well exposed.
Businesses around the world are investing heavily in AI, and this trend is expected to continue to remain competitive. AI-powered digitalization is a trend that currently seems unstoppable. However, risks include new regulations, supply chain disruptions, technology disappointments and high valuations.
Here is the evolution of the estimated turnover generated thanks to generative AI until 2032:
According to these prospective studies, there is still a long way to go.
According to Gartner, 80% of global companies will use generative AI by 2026, up from less than 5% in 2023. Demand for AI-enabled chipmaking equipment is accelerating. For example, the world’s largest manufacturing foundry in Taiwan (TSMC) projects 50% annual growth in AI revenue.
Many countries are increasing subsidies to revitalize domestic semiconductor manufacturing. The CHIPS Act in the United States announced more than $23 billion in grants. The European Union aims to double its global semiconductor production to 20% by 2030 with a $47 billion package. Japan also provided $25.7 billion to attract major players. Among the companies well positioned in the semiconductor market, we can cite: Nvidia, Broadcom, AMD, Intel, Qualcomm, ARM, TSMC, ASML, Applied Materials.
Growing demand for AI computing power is driving innovation in AI infrastructure and data centers. Most of the demand for AI computing comes from training large language models (LLM). Once training is complete, computational demand is expected to drop, and inference will likely become a focal point.
The International Energy Agency (IEA) estimates that electricity consumption could double by 2026, fueled by demand from data centers, AI and cryptocurrency mining. Power grid builders and energy producers close to data centers could continue to perform well. Among the companies well positioned in electrification, we can cite: Schneider Electric, Siemens, ABB, Eaton, Vertiv, Trane Technologies, Hitachi.
Here are some ideas for finding interesting companies on the themes covered:
As the AI revolution expands in the coming years, new opportunities will emerge. Investors must therefore remain vigilant in the face of risks while capitalizing on the numerous opportunities offered by this revolutionary technology.
