Identifying companies that are leaders in artificial intelligence (AI) is easy. Let’s take a look at the stock’s performance so far this year. Almost every AI stock has soared more than 30% (and in some cases more).
All of these companies are in the technology sector or have large technology operations. But other companies will benefit greatly from AI as well. I predict the following three of his stocks will be the biggest winners in non-tech AI.
1. Bank of America
Global consulting firm McKinsey & Company recently released a report identifying banks as the main beneficiaries of generative AI. The company predicted that generative AI could add value to the banking industry from $200 billion to $340 billion.
I agree that AI can help banks in many ways. The best bank stocks to buy to profit from potential developments in AI are: american bank (BAC 0.29%).
It certainly helps that Bank of America is a bargain right now. The banking giant’s shares trade at just 8 times forward earnings. This cheap valuation is mainly due to the banking crisis. But BofA’s business continues to be very strong.
Few banks can match Bank of America when it comes to innovation. The company won “Best AI/Machine Learning Initiative” at the 2022 American Financial Technology Awards. I have high hopes that BofA will take full advantage of AI and ultimately see the results in increased profits and a higher stock price.
2. United Health Group
Healthcare offers one of the most exciting opportunities for implementing AI. The technology could be used to develop drugs, diagnose conditions, streamline administrative tasks, and more.
Ideally, AI will help reduce healthcare costs over time.it should be music to one’s ears united health group (UNH 0.32%).
The company ranks as the world’s largest health insurance company. His company OptumRx is one of the top Pharmacy Benefits Managers (PBMs).
Optim Health provides direct healthcare. Optum Insight helps healthcare organizations operate more efficiently. AI should help UnitedHealth Group in all of these businesses.
Even without AI tailwinds, UnitedHealth Group should deliver solid returns over the long term. The growing elderly population in the United States should increase the demand for health care services. Few companies are benefiting more from this trend than UnitedHealth Group.
3. Walmart
McKinsey predicts that generative AI could add up to $390 billion in value to the retail industry. This technology promises a wide range of benefits, including improved customer support and more efficient negotiations with suppliers.
My hunch is that no retailer stands to benefit as much from AI. walmart (WMT -0.91%). The company reigns as the retail industry’s 800-pound gorilla, with more than 10,500 stores worldwide.
Walmart’s e-commerce opportunity is also often overlooked.nevertheless Amazon is clearly the largest e-commerce retailer in the United States, with Walmart in second place. The company’s U.S. e-commerce revenue increased 27% year over year in the first quarter of 2023.
Walmart is already investing heavily in AI. The technology is integrated into the company’s supply chain management, and many of its distribution centers use fully autonomous vehicles. The company makes extensive use of AI in managing its supply chain and negotiating with vendors. Walmart also uses self-driving cars at its distribution centers.
Like Bank of America and UnitedHealth Group, Walmart is not a tech stock. But it also, like both companies, is in a prime position to win from what could be the most transformative technology ever.
Bank of America is an advertising partner of The Motley Fool’s Ascent. John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Keith Speights has held positions at Amazon.com and Bank of America. The Motley Fool has positions in and recommends Amazon.com, Bank of America, and Walmart. The Motley Fool recommends his UnitedHealth Group. The Motley Fool has a disclosure policy.
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