The sector that has benefited the most from the immediate explosion in AI, by far, is semiconductors. Think of NVIDIA, Broadcom, Taiwan Semiconductor and others. Naturally, this makes a lot of sense. After all, semiconductors are the devices that will ultimately power the computing resources needed to automate endless hours of work.

However, there seem to be endless opportunities that I believe most investors, and markets in general, are missing related to AI over the next 3, 5, 10+ years. In this post, I attempt to outline a few companies that I’m doing research into. I’d be curious to hear your thoughts:

Bandwidth Inc (Ticker: BAND): Bandwidth controls, manages, and connects a large majority of all voice calls and text messages not only in the US, but also globally. Today, if you plan to implement AI into a call center, help desk, receptionist, text message process, anything in-between, you simply will use Bandwidth at some point in the cycle whether you know it or not. The best part for Bandwidth is that it requires little to no capex on their part to succeed in this industry with AI powered calling or texting services as they are only the connector, the one’s who connect the voice call or text message to the end user. For example, a company like OpenAI would use Bandwidth to deliver messages and calls at scale to end users.

Opera (OPRA): The competition is simply huge here, but Opera is a European web browser that competes with Google and Microsoft. They’ve been launching AI products into their browser for some time now and have entirely switched their model to be an entirely AI focused web browser. Of course, this market is absurdly competitive. Can they really compete with Google? Now ChatGPT? Time will tell. But, there’s no denying the fact that if they pivot into AI faster and more efficiently, there is potential.

US Steel (X): I find it interesting that US Steel began integrating AI services from Google as early as summer 2023. They did this to improve their employee processes and operational efficiencies. Now what’s really interesting here, is more-so the fact that data centers, server racks, cooling systems, and cable management systems all require high grade metals and US Steel is a leader in this regard. If the AI upgrade cycle does happen, US Steel is poised to have new customers coming its way or larger than expected customers making specific investments into the physical servers and warehousing required to power them.

Before I go any deeper, here’s some research I found from a large investment bank showing the AI cycle and the companies that are specifically involved at each step. What’s important to note here is that none of the companies on my list are on this bank’s research report. That’s why I do think my list has some potential – no one seems to discounting these possibilities.

My list continues below…

As you read, please remember this is not advice or anything of the sort. It is simply my initial research to share some open ideas I have about companies that might be well positioned to capitalize within the next AI cycle over the coming decade if they execute correctly.

UpWork (UPWK): Upwork is a leading freelancing platform that connects businesses with freelancers and generally has the more trusted brand compared to services like Fiverr and others. UpWork seems to have the best pool of talent related to AI experts, which in turn can quickly help companies on a contractor basis. Also, AI should only improve the efficiency of consultants and contractors making them more competitive to companies that tap into UpWork’s network.

Desktop Metal (DM): This is an absurdly risky play, with a challenging balance sheet, but there is no question at their 3D printing capabilities. The market has not exactly exploded to their exact needs, revenue is not as massive as people thought. So where does AI come in? AI’s role in optimizing manufacturing processes and designing new materials is pivotal. More importantly, it can make it more widely used, easier to use, and speed up the process to maximize 3D printing’s capabilities.

Symbotic Inc: Symbotic provides AI-powered robotic automation for warehouses and supply chains. AI’s role in logistics includes optimizing inventory management, improving order fulfillment, and reducing operational costs. Symbotic’s innovative solutions are crucial for the future of supply chain management, making it a promising investment in the AI-driven logistics sector.

AeroVironment Inc (AVAV): AeroVironment designs unmanned aerial vehicles (UAVs) and other robotics. AI enhances UAV capabilities through improved navigation, target recognition, and autonomous decision-making. AeroVironment has the potential to build some rather powerful robots with AI integrated into them and lead the way in terms of unmanned aerial vehicles + AI.

UiPath (PATH): UiPath is working in robotic process automation (RPA), helping organizations automate repetitive tasks. AI enhances RPA by enabling more complex automation and intelligent decision-making. UiPath’s integration of AI into its RPA solutions allows businesses to streamline operations, reduce costs, and increase productivity, making it a key player in the AI-driven automation market.

I’ll be updating this list over the next several months, so please stay tuned for more.