2024-02-02 11:13:47 ET
Summary
- The best strategy to invest in the AI revolution is to focus on the pick and shovel vendors in the space.
- These companies serve as toll takers on the road to the deployment of AI based applications.
- AI needs lots of storage and thus we recommend shares of Pure Storage.
- AI needs unified storage/compute and networking and thus we recommend shares of Nutanix.
- AI needs a data estate with high performance and tuned to specific requirements - thus we recommend shares of Snowflake.
AI: Picking out the reality from the hype
One of the more inevitable trends in the IT world is generative AI as well as the kind of AI that has been around for sometime. It seems as though the advent of Generative AI has focused the minds of users on all kinds of AI use cases. I am frequently asked about the best ways to invest in the AI space. This article is in response to those queries.
There are three things of note here: One is that almost every IT company has some kind of AI strategy. Many of them have so-called co-pilots; other have names such as AI Platform. With a phenomenon this universal, there isn’t going to be a single winner or even two or three. The advent of AI is a rising tide for growth in the IT space, and almost all companies will benefit.
A second thing to note; it is really too early to make definitive judgements about market share. I don't doubt that Microsoft (MSFT) will have a significant share of AI revenues, especially with the stunning quarter it recently reported that showed AI revenues doubling sequentially! But that said, even with its various co-pilots it is simply too early to determine just what market share the company will achieve in the AI market space. No one know that today and I don't have that kind of crystal ball.
I have read loads of product briefs about everyone’s generative AI solutions. Most of them are written in the tenor of the 2 nd Coming. Occasionally, as in the case of Palantir (PLTR), some 3 rd party analyst support can be found ( Dresner Advisory Services ). But for the most part, there is no Gartner or Forrester or IDC who have reviewed the claims and actually looked at the functionality....
Read the full article on Seeking Alpha
For further details see:
The Best Pick And Shovel Vendors For The AI Age: Pure Storage, Nutanix And Snowflake