Is AI a good investment? Portfolio managers weigh in

Key Takeaways

• Fidelity U.S. large cap growth portfolio managers see artificial intelligence as the most compelling multiyear investment theme that is going to drive major disruption across a variety of businesses.
• The adoption of AI has been influencing growth in nearly all areas of technology, but has also spawned growth in other sectors, such as utilities (e.g., power demand for data centers), industrials (e.g., the buildout of AI infrastructure) and communications equipment (e.g., maximization of targeted ads for consumer internet companies).
• According to Fidelity Portfolio Manager Kyle Weaver, “There’s going to be a large number of use cases for AI, some of which we can’t even imagine right now.”
• Large cap companies are well positioned to benefit and capitalize on the growth of AI because they tend to be market leaders and are among most innovative companies.
• “If you had owned the leaders of the prior major computing waves, you did very well from an investment perspective,” says Fidelity Portfolio Manager Chris Lin. “That’s why we’re spending so much time trying to figure out who are going to be the major leaders of this coming wave of artificial intelligence.”