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In a recent report, global wealth manager UBS identified the sectors likely to drive the next wave of technological innovation and the stocks that stand to benefit.
What Happened: UBS has pinpointed artificial intelligence (AI), cybersecurity, health tech, Greentech, and fintech as the sectors that will produce the next big thing in tech. The bank has selected 29 companies that are expected to experience superior earnings growth compared to the market, driven by positive, durable structural trends, CNBC reported on Sunday.
"Collectively, we see industry leaders for 2030 emerging from these sectors," said UBS in a March 14 report.
Among the companies on UBS list are: McKesson Corp MCK : The companys expansion into data-driven services across the U.S. healthcare value chain will cause UBS to be bullish in the future. Baidu BIDU : UBS sees Baidus expertise in AI and machine learning, particularly in its non-advertising businesses like autonomous driving and cloud, as potential long-term growth drivers. Stryker SYK : UBS notes Strykers growth in its core orthopedic markets, particularly in robotic surgery, as a strong indicator of future performance. ASML Holding ASML : UBS predicts the Dutch semiconductor firm will outgrow its peers due to the continued rise in lithography capital expenditure spending. Broadcom AVGO : UBS highlights Broadcoms market-leading position in semiconductor design and its potential to tap into the structural demand for 5G-related services, data center storage, and industrial applications.
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Other companies on the list include Intercontinental Exchange ICE , Mastercard Inc MA , Air Liquide AIQUY , Engie ENGIY , Wacker Chemie WKCMY , ServiceNow NOW , and Taiwan Semiconductor TSM .
Why It Matters: The UBS report aligns with recent developments in the tech industry. For example, AI has been a hot topic, with experts like Jim Cramer expressing excitement about the potential of AI in Nvidias future.
However, other industry voices, such as Fidelity International, have suggested that investors look beyond the obvious choices, like Nvidia, for AI investments. Loading… Loading…
Despite this, Glen Kacher of Light Street Capital has advised that it may be too early to exit the semiconductor market, suggesting that we are still at the beginning of the investment cycle for building an AI infrastructure.
This indicates that the tech sectors identified by UBS may indeed be the next big thing, with AI and semiconductors playing a crucial role.
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