There has been a great deal of AI industry news this year. However, at least in the business-news media, most of the attention has been narrowly focused on several areas. Specifically, those media outlets have focused on the ways in which AI will affect Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG). And, of course, the phenomenon of ChatGPT, which appears to have largely been taken over by Microsoft. Finally, a great deal of ink has been spilled about Nvidia’s (NASDAQ:NVDA) status as a supplier of chips used to facilitate AI.
In the second half of the year, I believe that these media outlets will focus on other AI industry news. Specifically, AI’s influence on digital content, marketing, chip makers, and healthcare will gain more attention in late 2023. This change will boost many stocks in each of these sectors.
Digital Content and Digital Marketing
Snap’s (NYSE:SNAP) Snapchat and Meta (NASDAQ:META), the owner of Facebook and Instagram, are both extensively utilizing AI. Snapchat enhances its content, while Meta focuses on improving ads using the same technology.
Snap has launched an AI-powered chatbot called “My AI.” Similar to ChatGPT, MyAI, unlike ChatGPT provides “recommendations for restaurants and other activities.” Additionally, this platform provides ideas for “augmented reality lenses.” Users appear to enjoy chatting with MyAI. That’s because user numbers are impressive, with two million messages sent via MyAI as of April 19. Additionally, earlier this month, Snap began launching ads that will be posted in tandem with the chatbot.
Meanwhile, Meta has launched AI Sandbox. This enables ads to be more customized to individual users. It also designs ad backgrounds more easily and enables marketers to utilize graphics in different formats.
These changes will increase the appeal of digital content and accelerate the shift of ad dollars to the digital realm.
Consequently, Meta, Snap, and other companies that obtain a large percentage of their revenue from digital ads, such as Alphabet and IAC (NASDAQ:IAC), should get a big boost.
Other Chipmakers Will Enter the Limelight
So far, Nvidia has gotten the lion’s share of the “AI love” from the financial media and investors. But many other chipmakers are going to get a lift from the AI industry.
For example, Intel’s (NASDAQ:INTC) Gaudi2 chips have shown the ability to train chatbots and be competitive with Nvidia when it comes to the pace of training AI systems. Meanwhile, it appears that the proliferation of AI is also going to greatly increase the demand for Micron’s (NASDAQ:MU) memory chips. Also, Broadcom (NASDAQ:AVGO) recently introduced its “Jericho3-AI chip.” The company claims this chip has “the industry’s highest performance fabric for artificial intelligence networks.”
Finally, Analog Devices (NASDAQ:ADI) has developed “a line of AI microcontrollers that run AI commands hundreds of times faster and with lower energy than other products,” according to the company.
Healthcare AI Stocks Will Become a Much Bigger Deal
In a previous column, I noted that a doctor had stated that AI “can be a key means of enabling healthcare to become more personalized and making diagnoses earlier.”
AI-focused healthcare firms are expected to receive increased attention for this reason. I expect much of this attention to come in the latter half of the year, given the sector’s significant spending and AI’s potential to enhance it. Schrodinger’s (NASDAQ:SDGR) stock price surged 39% over the past three months, and 20% over the past five days, on news that it is utilizing AI for faster drug discovery. I expect more companies to follow suit.
As of the date of publication, Larry Ramer owned shares of SDGR and INTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
