Investors are currently focusing on a tech company that presents opportunities in both artificial intelligence and nearshoring. Additionally, JPMorgan is identifying significant prospects in private markets.
‘Worldwide Exchange’ Pick: Amkor Technology (AMKR)
Nancy Prial from Essex Investment Management highlights Amkor Technology, a semiconductor testing and packaging firm, as a dual play in AI and nearshoring. “We like it as a backdoor AI play,” Prial stated. “They supply outsourced assembly and test equipment, which is crucial for advanced packaging needed for sophisticated chips, servers, and data centers.”
In August, Apple made headlines by announcing an investment in Amkor. Prial emphasized, “It’s the only outsourced assembly and test manufacturer with a significant presence in the United States while also maintaining operations overseas. We believe they have several tailwinds supporting their growth.”
Bullish Call on Nvidia
Robert Schein of Blanke Schein Wealth Management has a strong stance on Nvidia, urging investors not to underestimate the chip giant. Following Nvidia’s announcement of a $100 billion investment into OpenAI, Schein remarked, “Don’t fight Nvidia.” He sees potential for further growth, particularly in quantum computing.
“There’s another sector or leg up of growth potentially,” Schein noted. “The market is also exploring the robotics trade and its contributions to industrial automation, extending beyond just GPUs and data centers. I believe you don’t want to bet against Nvidia moving forward, as there’s another chapter yet to unfold.”
Evaluating Opportunities in Private Markets
Sitara Sundar from JPMorgan identifies software as the next major beneficiary of the artificial intelligence boom, estimating the sector’s potential at $3 trillion to $5 trillion. However, she emphasizes that the most promising opportunities will arise in private markets, where private companies constitute approximately 95% of the software landscape.
“The infrastructure developments have primarily occurred in public markets,” Sundar explained. “We believe we are on the brink of a transition towards the application layer and platform technology layer. This shift signifies a move from software as a service to service as software, which essentially means automating core business functions and certain aspects of the labor force. This presents a significant opportunity set.”
“Currently, we anticipate that the majority of these companies will emerge from private markets within the next decade.”
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