'Still room for growth among artificial intelligence-related stocks'

It is difficult to answer this question. Undoubtedly, many companies in these segments will receive a boost from artificial intelligence in the coming years. But the reality is that the strongest financial performance in recent years has come from companies like the Magnificent 7. Leading technology and internet companies are in an advantageous position compared to others, thanks not only to their ability to invest heavily in AI-related investments, but also to the amount of data at their disposal to train their models.

The profit launch pad for everything associated with accelerated computing remains solid. Noteworthy are the semiconductor companies producing the Gpu's essential for AI implementation. Likewise, the order books for key chip equipment manufacturers are full. The outlook for Internet earnings also remains optimistic, whether in digital advertising, e-commerce or ride-sharing. As already mentioned, we expect software earnings to be uneven as the industry seeks to optimally integrate artificial intelligence. But this potential dispersion of earnings should be positive for stock selection.

Stock markets are always subject to declines. The technology sector is no exception. However, volatility events offer investment opportunities, as attractive entry points may emerge in previously overbought segments. For more than a decade, the technology sector has been the fastest-growing sector in equity earnings and we expect this trend to continue, if not accelerate. For many of the best-in-class companies, we believe earnings multiples are attractive, as the market tends to underestimate growth opportunities over a multi-year horizon.

Although artificial intelligence will be a boon to productivity and likely profit growth not only in the technology sector, but across the entire corporate landscape, only a handful of companies are at the forefront of the deployment of this revolutionary technology. All facets of the semiconductor industry are well represented, from Asml's proprietary equipment to Nvidia's advanced Gpu and Tsmc's manufacturing prowess. In the Internet space, Microsoft is leveraging its strong relationship with OpenAI, owner of ChatGPT, to provide a model for software companies on how to integrate artificial intelligence into all aspects of their business. Finally, Apple excited investors with its Apple Intelligence platform, an initiative that combines device-based Ia applications with cloud-based Ia capabilities. We believe the iPhone manufacturer is positioning itself as a gateway for consumers to the vast Ia ecosystem.