{"id":15704,"date":"2023-05-30T12:08:50","date_gmt":"2023-05-30T16:08:50","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/from-mcdonalds-to-morgan-stanley-ubs-says-these-stocks-are-favorably-positioned-for-ai\/"},"modified":"2023-05-30T12:08:51","modified_gmt":"2023-05-30T16:08:51","slug":"from-mcdonalds-to-morgan-stanley-ubs-says-these-stocks-are-favorably-positioned-for-ai","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=15704","title":{"rendered":"From McDonald\u2019s to Morgan Stanley, UBS says these stocks are favorably positioned for AI."},"content":{"rendered":"<p>With lawmakers bringing a debt-ceiling deal back from the brink over the holiday weekend, Wall Street looks ready to show its appreciation with a fresh 10-month high possible for the S&amp;P 500<br \/>\n        SPX<span><\/span><br \/>\n       on Tuesday.<\/p>\n<p>Once we get through that, though, expect the focus to pivot quickly to fresh jobs numbers on Friday. Those gains are being led by technology once again, with AI chip king Nvidia climbing after announcing a boatload of new products. <\/p>\n<div>\n<p>Our <strong>call of the day<\/strong> slots right into this theme, as UBS names dozens of stocks \u201cfavorably positioned\u201d for the fast-moving technology. <\/p>\n<p>\u201cMany UBS sector analysts think that generative AI (ie. AI that can create text, video etc.) has the potential to intensify competitive pressures, with 18 of 32 teams expecting this outcome, while 19 see a potential for higher revenues. All but one (Internet) see an opportunity for cost reduction,\u201d said a team led by analyst Michael Briest.<\/p>\n<p>For example, restaurants like McDonald\u2019s<br \/>\n        MCD<span><\/span><br \/>\n       stand to benefit further from automated ordering and demand-based food preparation. AI will help retailers like Walmart<br \/>\n        WMT<span><\/span><br \/>\n       further understand what what consumers want, and those drivers of change will help to accelerate introduction of new products.<\/p>\n<p>Automobiles are poised to benefit as well from cost reductions, in distribution, maintenance and spare parts, while aerospace and defense will see reduced costs on material and labor along with increased safety and security. Morgan Stanley<br \/>\n        MS<span>,<\/span><br \/>\n       as UBS points out, is already using the technology via pilot scheme for ChatGPT to help summarize research and help produce data for financial advisors.<\/p>\n<p>To be sure, lower labor costs is a theme running through most sectors, and not all sectors will see increased competitive advantages. Software is one sector where they see the possibility of increased competition via AI, as the technology builds out.<\/p>\n<p>So we\u2019ll dive right in with a list of some of the stocks they think are best placed as AI rolls out, highlighting the ones the bank has a buy rating on, unless otherwise noted. Their chart below also gives a snapshot of their views:<\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-inline\n        article__inset__image\n      \" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<\/figure><\/div>\n<p><strong>Aerospace: <\/strong>BAE Systems<br \/>\n        UK:BA<span><\/span>\n      <\/p>\n<p><strong>Automobiles<\/strong>: Mercedes-Benz<br \/>\n        XE:MBG<span><\/span><br \/>\n       and Tesla<br \/>\n        TSLA<span><\/span>\n       <\/p>\n<p><strong>Capital Goods:<\/strong> ABB,<br \/>\n        SE:ABB<span><\/span><br \/>\n       Siemens<br \/>\n        XE:SIE<span>,<\/span><br \/>\n       Amphenol<br \/>\n        APH<span>,<\/span><br \/>\n       Keysight<br \/>\n        KEYS<span>,<\/span><br \/>\n       Eaton<br \/>\n        ETN<span>,<\/span><br \/>\n       Grainger<br \/>\n        GWW<span>,<\/span><br \/>\n       Trane<br \/>\n        TT<span>,<\/span><br \/>\n       Emerson<br \/>\n        EMR<span>,<\/span><br \/>\n       TE Connectivity<br \/>\n        TEL<span><\/span>\n      <\/p>\n<p><strong>Chemicals:<\/strong> Wacker<br \/>\n        XE:WCH<span>,<\/span><br \/>\n       DuPont<br \/>\n        DD<span>,<\/span><br \/>\n       Tokyo Okha Kogyo<br \/>\n        JP:4186<span><\/span>\n       <\/p>\n<p><strong>Consumer Staples: <\/strong>Coca-Cola<br \/>\n        KO<span>,<\/span><br \/>\n       Heineken<br \/>\n        NL:HEIA<span>,<\/span><br \/>\n       L\u2019Or\u00e9al<br \/>\n        FR:OR<span><\/span>\n      <\/p>\n<p><strong>Exchanges:<\/strong> S&amp;P Global<br \/>\n        SPGI<span>,<\/span><br \/>\n       London Stock Exchange<br \/>\n        UK:LSEG<span>,<\/span><br \/>\n       Hong Kong Exchanges &amp; Clearing<br \/>\n        HK:388<span><\/span>\n       <\/p>\n<p><strong>Fintech &amp; payments:<\/strong> Visa<br \/>\n        V<span>,<\/span><br \/>\n       PayPal<br \/>\n        PYPL<span>,<\/span><br \/>\n       Mastercard<br \/>\n        MA<span>,<\/span><br \/>\n       Block<br \/>\n        SQ<span>,<\/span><br \/>\n       Adyen<br \/>\n        NL:ADYEN<span><\/span>\n      <\/p>\n<p><strong>Food retail:  <\/strong>Tesco<br \/>\n        UK:TSCO<span>,<\/span><br \/>\n       Yum China<br \/>\n        YUMC<span>,<\/span><br \/>\n       BGF Retail<br \/>\n        KR:282330<span>,<\/span><br \/>\n       Sun Art<br \/>\n        HK:6808<span><\/span>\n      <\/p>\n<p><strong>General retail:<\/strong> Walmart<br \/>\n        WMT<span>,<\/span><br \/>\n       Home Depot<br \/>\n        HD<span>,<\/span><br \/>\n       Nike<br \/>\n        NKE<span>,<\/span><br \/>\n       Seven &amp; I<br \/>\n        JP:3382<span>,<\/span><br \/>\n       Zalando<br \/>\n        XE:ZAL<span>,<\/span><br \/>\n       Inditex<br \/>\n        ES:ITX<span>,<\/span><br \/>\n       Levi<br \/>\n        LEVI<span><\/span>\n      <\/p>\n<p><strong>Insurers: <\/strong>Admiral<br \/>\n        UK:ADM<span>,<\/span><br \/>\n       Ping An<br \/>\n        CN:601318<span><\/span>\n      <\/p>\n<p><strong>Internet: <\/strong>Meta Platforms<br \/>\n        META<span>,<\/span><br \/>\n       Alphabet<br \/>\n        GOOGL<span>,<\/span><br \/>\n       Amazon<br \/>\n        AMZN<span><\/span>\n      <\/p>\n<p><strong>Luxury goods: <\/strong>LMVH<br \/>\n        FR:MC<span>,<\/span><br \/>\n       neutral rated Kering<br \/>\n        FR:KER<span><\/span><br \/>\n       and Burberry<br \/>\n        UK:BRBY<span><\/span>\n      <\/p>\n<p><strong>Media: <\/strong>Tencent<br \/>\n        HK:700<span>,<\/span><br \/>\n       Netflix<br \/>\n        NFLX<span>,<\/span><br \/>\n       NetEase<br \/>\n        NTES<span>,<\/span><br \/>\n       RELX Group<br \/>\n        RELX<span>,<\/span><br \/>\n       Universal Music Group<br \/>\n        NL:UMG<span><\/span>\n      <\/p>\n<p><strong>Medical Devices &amp; Services: <\/strong>Guardant Health<br \/>\n        GH<span>,<\/span><br \/>\n        Natera<br \/>\n        NTRA<span><\/span><br \/>\n      Johnson &amp; Johnson<br \/>\n        JNJ<span><\/span><br \/>\n      and UnitedHealth<br \/>\n        UNH<span><\/span><br \/>\n       (both neutral rated)<\/p>\n<p><strong>Mining:<\/strong> Anglo American<br \/>\n        UK:AAL<span><\/span><br \/>\n       (neutral), Rio Tinto<br \/>\n        RIO<span><\/span><br \/>\n      and BHP<br \/>\n        BHP<span><\/span><br \/>\n       (both sell rated)<\/p>\n<p><strong>Oil &amp; gas:<\/strong> Shell<br \/>\n        SHEL<span>,<\/span><br \/>\n       Halliburton<br \/>\n        HAL<span><\/span><br \/>\n       and Schlumberger<br \/>\n        SLB<span><\/span>\n      <\/p>\n<p><strong>Real estate: <\/strong>Equinix<br \/>\n        EQIX<span>,<\/span><br \/>\n       Prologis<br \/>\n        PLD<span>,<\/span><br \/>\n       SEGRO<br \/>\n        UK:SGRO<span>,<\/span><br \/>\n       Digital Realty<br \/>\n        DLR<span><\/span><br \/>\n       (neutral)<\/p>\n<p><strong>Restaurants: <\/strong>McDonald\u2019s<br \/>\n        MCD<span>,<\/span><br \/>\n       Chipotle Mexican Grill<br \/>\n        CMG<span>,<\/span><br \/>\n       Domino\u2019s<br \/>\n        DPZ<span>,<\/span><br \/>\n       The Wendy\u2019s Co.<br \/>\n        WEN<span><\/span><br \/>\n       (neutral)<\/p>\n<p><strong>Semiconductors: <\/strong>AMD<br \/>\n        AMD<span>,<\/span><br \/>\n       Micron<br \/>\n        MU<span>,<\/span><br \/>\n       Nvidia<br \/>\n        NVDA<span>,<\/span><br \/>\n       Samsung<br \/>\n        KR:005930<span>,<\/span><br \/>\n       SK Hynix<br \/>\n        KR:000660<span>,<\/span><br \/>\n       TSMC<br \/>\n        TW:2330<span>,<\/span><br \/>\n       VAT Group<br \/>\n        CH:VACN<span>,<\/span><br \/>\n       Inficon<br \/>\n        CH:IFCN<span>,<\/span><br \/>\n        Comet<br \/>\n        CH:COTN<span><\/span>\n      <\/p>\n<p><strong>Software: <\/strong>SentinelOne<br \/>\n        S<span>,<\/span><br \/>\n       CrowdStrike<br \/>\n        CRWD<span>,<\/span><br \/>\n       neutral-rated Microsoft<br \/>\n        MSFT<span>,<\/span><br \/>\n       Adobe<br \/>\n        ADBE<span><\/span><br \/>\n      and Palo Alto Networks<br \/>\n        PANW<span><\/span>\n      <\/p>\n<p><strong>Steel: <\/strong>POSCO<br \/>\n        KR:005490<span>,<\/span><br \/>\n       Hyundai Steel<br \/>\n        KR:004020<span>,<\/span><br \/>\n       Nippon Steel<br \/>\n        JP:5401<span><\/span>\n      <\/p>\n<p><strong>Tech hardware:  <\/strong>Dell<br \/>\n        DELL<span>,<\/span><br \/>\n       Quanta<br \/>\n        TW:2382<span>,<\/span><br \/>\n       Wistron<br \/>\n        TW:3231<span>,<\/span><br \/>\n       neutral-rated Arista<br \/>\n        ANET<span><\/span><br \/>\n       and Pure Storage<br \/>\n        PSTG<span><\/span>\n      <\/p>\n<p><strong>Telecoms: <\/strong>Telenor<br \/>\n        NO:TEL<span>,<\/span><br \/>\n       Bharti Airtel<br \/>\n        IN:532454<span>,<\/span><br \/>\n       China Mobile<br \/>\n        HK:941<span>,<\/span><br \/>\n       neutral rated Elisa<br \/>\n        FI:ELISA<span><\/span><br \/>\n       and Telstra<br \/>\n        AU:TLS<span><\/span>\n      <\/p>\n<p><strong>Transport &amp; logistics: <\/strong>Deutsche Post-DHL<br \/>\n        XE:DPW<span>,<\/span><br \/>\n        UPS<br \/>\n        UPS<span><\/span>\n       <\/p>\n<p><strong>Wealth &amp; asset managers: <\/strong>Morgan Stanley<br \/>\n        MS<span>,<\/span><br \/>\n       EQT<br \/>\n        EQT<span>,<\/span><br \/>\n       Discovery<br \/>\n        ZA:DSY<span><\/span><br \/>\n       and neutral-rated BlackRock<br \/>\n        BLK<span><\/span>\n      <\/p>\n<h2>The markets<\/h2>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-inline\n        article__inset__image\n      \" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<\/figure><\/div>\n<p>Stocks are solidly higher, with the Nasdaq Composite<br \/>\n        COMP<span><\/span><br \/>\n       up 1%. The yield on the 10-year Treasury note<br \/>\n        BX:TMUBMUSD10Y<span><\/span><br \/>\n       is down 8 basis points to 3.72%. Oil<br \/>\n        CL<span><\/span><br \/>\n       is dropping ahead of an OPEC meeting. <\/p>\n<p>The Turkish lira<br \/>\n        USDTRY<span><\/span><br \/>\n       continues to slump to fresh lows against the dollar, currently at 20.39 lira, as President Recep Tayyip Erdogan is set for a new term. Morgan Stanley is not optimistic.<\/p>\n<p><strong>For more market updates plus actionable trade ideas for stocks, options and crypto,\u00a0subscribe to\u00a0MarketDiem by Investor\u2019s Business Daily.<\/strong> <\/p>\n<h2>The buzz <\/h2>\n<p>Several votes are ahead for the deal reached between President Joe Biden and House Speaker Kevin McCarthy to suspend the nation\u2019s debt limit through 2025, starting with a House Rules Committee vote on Tuesday. <\/p>\n<p>Nvidia<br \/>\n        NVDA<span><\/span><br \/>\n       stock is up 3.8% and could reach a $1 trillion market cap on Tuesday  after announcing tons of new products, including a supercomputer and plans to make gaming characters come alive. The chip maker also said it\u2019s doing a deal with WPP<br \/>\n        WPP<span>,<\/span><br \/>\n       up 2%, to develop a content engine that uses generative AI for digital advertising.<\/p>\n<p>We\u2019ll get earnings from HP<br \/>\n        HPQ<span><\/span><br \/>\n        later, then Dell<br \/>\n        DELL<span><\/span><br \/>\n       on Thursday, which could confirm whether a pandemic-era tech bottleneck is for sure ending. <\/p>\n<p>Netflix<br \/>\n        NFLX<span><\/span><br \/>\n       stock is up over 5% and headed for a 15-month high.<\/p>\n<p>Ford<br \/>\n        F<span><\/span><br \/>\n       is up 3% after an upgrade to buy at Jefferies. <\/p>\n<p>Newell Brands<br \/>\n        NWL<span><\/span><br \/>\n       is down 3% after a restructuring plan announced last week. <\/p>\n<p>The data spotlight this week will fall on May jobs data, due Friday. Ahead of that, data from S&amp;P Case-Shiller showed home prices rising across top cities. Consumer confidence is due at 10 a.m., then a speech from Richmond Fed President Thomas Barkin.  <\/p>\n<h2>Best of the web<\/h2>\n<p>These company insiders made billions before the SPAC bust.<\/p>\n<p>A Chinese ship has been detained over accusations it looted U.K. warships sunk in 1941.<\/p>\n<p>How NFL star Austin Ekeler brings his \u2018A\u2019 game to personal finance<\/p>\n<h2>The chart<\/h2>\n<p>Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets , has lifted her S&amp;P 500 year-end target to to 4,250 from 4,100, and much of that is down to investor negativity. She says when AAII ( American Association of Individual Investors survey) net bullishness is at -10% in favor of the bears such as at the start of the year and currently, the S&amp;P 500 tends to rally 15% over the next 12 months.<\/p>\n<p>Here\u2019s an example of that negativity, positioning in S&amp;P 500 e-minis: <\/p>\n<div data-layout=\"inline\n                \" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetMediaIllustration\n            inline\n  article__inset\n          article__inset--type-InsetMediaIllustration\n            article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-inline\n        article__inset__image\n      \" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<\/figure><\/div>\n<h2><\/h2>\n<p>Top tickers <\/p>\n<p>These were the most-searched stocks on MarketWatch as of 6 a.m.:<\/p>\n<table>\n<tr class=\"data odd\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      Ticker<\/p>\n<\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      Security name<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data even\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n        TSLA<span><\/span>\n      <\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      Tesla<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data odd\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n        NVDA<span><\/span>\n      <\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      Nvidia<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data even\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n        MULN<span><\/span>\n      <\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      Mullen Automotive<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data odd\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n        GME<span><\/span>\n      <\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      GameStop<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data even\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n        PLTR<span><\/span>\n      <\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      Palantir<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data odd\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n        BUD<span><\/span>\n      <\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      Anheuser-Busch InBev<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data even\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n        AAPL<span><\/span>\n      <\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      Apple<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data odd\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n        AMC<span><\/span>\n      <\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      AMC Entertainment<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data even\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n        AMZN<span><\/span>\n      <\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      Amazon.com<\/p>\n<\/td>\n<\/tr>\n<tr class=\"data odd\">\n<td align=\"\" valign=\"top\" colspan=\"1\">\n        AMD<span><\/span>\n      <\/td>\n<td align=\"\" valign=\"top\" colspan=\"1\">\n      Advanced Micro Devices<\/p>\n<\/td>\n<\/tr>\n<\/table>\n<h2>Random reads<\/h2>\n<p>Unenviable vacation highlight: Pulling one\u2019s head from a croc\u2019s jaws.<\/p>\n<p>Solved: Mystery of Venice\u2019s fluorescent green canal.<\/p>\n<p><strong>Need to Know starts early and is updated until the opening bell, but\u00a0sign up here\u00a0to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern.<\/strong><\/p>\n<p><strong>Listen to the\u00a0Best New Ideas in Money podcast\u00a0with MarketWatch reporter Charles Passy and economist Stephanie Kelton.<\/strong><\/p>\n<\/p><\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/story\/from-mcdonalds-to-morgan-stanley-ubs-says-these-stocks-are-favorably-positioned-for-ai-d0ff58a8?mod=markets\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With lawmakers bringing a debt-ceiling deal back from the brink over the holiday weekend, Wall Street looks ready to show its appreciation with a fresh 10-month high possible for the S&amp;P 500 SPX on Tuesday. Once we get through that, though, expect the focus to pivot quickly to fresh jobs numbers on Friday. Those gains [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15705,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-15704","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>From McDonald\u2019s to Morgan Stanley, UBS says these stocks are favorably positioned for AI. | iFintechWorld<\/title>\n<meta name=\"description\" content=\"With lawmakers bringing a debt-ceiling deal back from the brink over the holiday weekend, Wall Street looks ready to show its appreciation with a fresh\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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