Under the drive of AI, UBS: Except for the Internet, costs in other industries will decrease!

UBS said that from McDonald's to Morgan Stanley, these stocks can benefit from the development of artificial intelligence.

UBS believes that generative artificial intelligence may intensify competitive pressures, with 17 of the 32 industries expected to see this result, while 18 industries may see higher revenues.

"Except for the Internet, all other industries have the opportunity to reduce costs," said a team led by analyst Michael Briest.

For example, restaurants like McDonald's will further benefit from automated ordering and on-demand food preparation.

Artificial intelligence will help retailers like Walmart better understand what consumers are and what drives these changes, helping to accelerate the launch of new products.

Automakers will also benefit from lower distribution, maintenance, and spare parts costs, while aerospace and defense will see lower material and labor costs, as well as improved safety.

As UBS pointed out, Morgan Stanley has already used this technology in the ChatGPT pilot program to help summarize research results and provide data for financial advisors.

It is certain that not all industries will see increased competitive advantages. They believe that as artificial intelligence technology develops, competition in the software industry may intensify.

The following chart also briefly illustrates their views:

In addition, UBS lists some stocks that they believe are most worth betting on as artificial intelligence develops, and of course, most banks have given buy ratings.

Automotive: Tesla

Capital goods: Amphenol, Keysight, Eaton ETN, Grainger, Trane, Emerson, TE Connectivity

Chemicals: Wacker XE:WCH, DuPont DD

Consumer Staples: Coca-Cola

Exchanges: S&P Global SPGI

Fintech & payments: Visa, PayPal, Mastercard, Block SQ

Food retail: Yum China

General retail: Walmart, Home Depot, Nike

Internet: Meta, Alphabet, Amazon

Luxury goods: LMVH

Media: Tencent, Netflix, NetEase

Medical Devices & Services: Johnson & Johnson, UnitedHealth UNH Mining: Rio Tinto RIO and BHP BHP (both sell rated)

Oil & gas: Shell, Halliburton, Schlumberger

Real estate: Equinix, Prologis

Restaurants: McDonald’s, Chipotle Mexican Grill, Domino’s

Semiconductors: AMD, Micron, Nvidia, TSMC

Software: SentinelOne S, CrowdStrike, Adobe, Palo Alto Networks

Tech hardware: Dell, Pure Storage PSTG

Transport & logistics: UPS

Wealth & asset managers: Morgan Stanley, EQT, BlackRock