Forget about NVIDIA! These 50 US stocks will benefit from AI in the long term.

Goldman Sachs pointed out that since the beginning of this year, the average return on investment for companies benefiting from short-term artificial intelligence, such as NVIDIA, has been 66%. With the advancement of artificial intelligence, the median earnings per share for the 1000 largest companies in the United States by market capitalization may increase by 19%.

Goldman Sachs suggests that investors should focus on companies that will benefit from the adoption of artificial intelligence in the long term, rather than those that have recently benefited, as the stock prices of the latter have already risen significantly.

David J. Kostin, Chief U.S. Equity Strategist at Goldman Sachs, pointed out that so far this year, the average return of short-term AI beneficiary companies, including NVIDIA, Meta, Amazon, Salesforce, Marvell Technology, Adobe, Alphabet, ServiceNow, Microsoft, Intuit, and Credo Technology, is 66%, while the return of the S&P 500 index is 15%.

In a report on Sunday, Kostin wrote that some companies that will benefit from AI in the long term may increase earnings per share by increasing sales and/or profit margins.

According to Kostin, the median earnings per share of companies in the Russell 1000 index, which represents the 1000 largest U.S. companies by market capitalization, could increase by 19% due to the drive of artificial intelligence.

Kostin also listed 50 companies that could be long-term beneficiaries of AI, covering industries such as communication services, non-essential consumer goods, energy, finance, and information technology. With the advancement of AI, their benchmark earnings per share are expected to grow by 388%.

Industry

Company

Potential Change in Earnings due to AI (%)

Communication services

Pinterest, Inc.162New York Times Company67News Corp.63ZoomInfo Technologies Inc58

Sector median

Consumer discretionary

H&R Block, Inc.57Kohl’s Corp.49Coupang, Inc.49CarMax, Inc.42Amazon.com, Inc39Lear Corp.30

Sector median

Consumer staples

Walmart Inc.44Walgreens Boots Alliance, Inc.38Costco Wholesale Corp.31

Sector median

Energy

Occidental Petroleum Corp.9Williams Companies, Inc9 Sector Median

Financials

Kemper Corp42Brown & Brown, Inc40First American Financial Corp38Willis Towers Watson36Marsh & McLennan Companies, Inc30Fidelity National Financial, Inc.30Voya Financial, Inc.30

Sector Median

Health Care

Tenet Healthcare Corp135DaVita Inc.105Universal Health Services, Inc.91IQVIA Holdings Inc77R1 RCM Inc77Encompass Health Corp.68Illumina, Inc.54

Sector Median

Industrials

Clarivate PLC232Robert Half Inc.150Ceridian HCM Holding, Inc125Tetra Tech, Inc.122Science Applications International Corp115

Sector Median

Information Technology

Guidewire Software, Inc.388Alteryx, Inc.203MongoDB, Inc.193Nutanix, Inc177Smartsheet, Inc.171Snowflake, Inc.154Twilio, Inc.138DXC Technology Co95BILL Holdings, Inc93HubSpot, Inc.91Accenture Plc80Elastic NV76Cognizant Technology Solutions Corp76

Sector median

Materials

International Paper Company41

Sector median

Real Estate

Jones Lang LaSalle Incorporated120 Sector median

Utilities

Hawaiian Electric Industries, Inc26

Sector median

List median

Russell 1000 median