Where are we looking for the next year in the AI era? Barclays: Don't just focus on Nvidia, these two fields have greater opportunities
yuki1206
发表于 2023-12-18 15:07:57
3250
0
0
Since the beginning of this year, technology stocks have been flourishing in the US market. The Nasdaq Composite Index, represented by technology stocks, has far outperformed the S&P 500 and Dow Jones during the year. Looking ahead to next year, Barclays Bank believes in its latest report that the performance of technology stocks will once again outperform other industries in 2024, with the performance of the cybersecurity and cloud computing sectors likely to be the most prominent.
Barclays stated that one of the main catalysts behind this is still artificial intelligence. But for Wall Street, next year's market may not necessarily repeat this year's story.
Barclays suggests that investors should not be limited to AI chip manufacturers such as Nvidia, but should also focus on some lesser known companies in the technology industry, as the second year of the AI boom may become a reality test for the industry as companies gradually focus on expanding AI use cases and reducing risks.
"This will involve using artificial intelligence in different ways. We haven't really seen cases of achievements in other fields yet," said Tim Long, Senior Analyst for Technology Hardware and Networking at Barclays Bank, in an interview last week
The higher interest rate levels and concerns about falling spending have to some extent slowed down the upward momentum of the cybersecurity sector this year. As time enters the last two weeks of 2023, the sector's growth this year lags behind the overall technology industry - the Nasdaq Cybersecurity Index rose 39% this year, while the Nasdaq 100 Index rose as high as 53%.
However, Barclays believes that as companies invest more funds in the future to prevent the threat posed by artificial intelligence, this gap may soon narrow. Research firm Gartner predicts that corporate spending on cybersecurity will climb by 14% next year, reaching $215 billion.
Saket Kalia, senior software analyst at Barclays Bank, explained that the environment feels "more stable", and he believes that cloud security and SASE (Secure Access Service Edge) are the top investment themes for 2024. His preferred stocks include cybersecurity companies CrowdStrike and Gen Digital.
"CrowdStrike has not only achieved tremendous growth in the security sector, but also has strong free cash flow support and is diversifying its business. It reminds me of Palo Alto Networks 18 to 24 months ago... Investors love diversity, and I believe this will continue CrowdStrike's story in 2024," Kalia added.
It is worth mentioning that CrowdStrike's stock price has risen by 150% this year.
Gen Digital's predecessors were well-known security software developers Norton LifeLock and Avast, and the stock was also another preferred target for the Barclays team. The company's recent financial report shows that its second quarter revenue increased by 27%, driven by a year-on-year surge in booking volume.
Kalia explained, "The operating profit margin of this company is close to 60%... and its transaction valuation is very reasonable."
Unlike CrowdStrike, which achieved a triple digit surge this year, Gen Digital is one of the worst performing companies in the cybersecurity sector, with its stock price only rising by 7% so far this year.
In addition to pure cybersecurity stocks, Long from Barclays Bank believes that Arista Networks, a cloud computing network equipment company, will also become a hot stock in the artificial intelligence boom next year. "Arista is a leader in the field of artificial intelligence. They produce switches and routers - the network elements of these data centers, which typically account for about 10% of AI data center expenses," explained Long.
At the third quarter earnings conference call of Arista Networks, CEO Jayshree Ullal mentioned strong demand for new technologies and pointed out that customers "are clearly prioritizing and doubling their emphasis on artificial intelligence this year."
As of last Friday, Arista Networks has risen by 95% this year, far surpassing its competitors Juniper Networks and Cisco.
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
猜你喜欢
- An epic drop scares US stocks? Nvidia's market value shrank by 3 trillion yuan in three days
- Nvidia violently lifted the S&P 500 index, ending three consecutive declines! US stocks returning to fundamentals?
- Top 20 US stock trading volume: Nvidia rebounds significantly after three consecutive declines
- NVIDIA CEO Huang Renxun: The timing for automation in heavy industry is ripe
- NVIDIA intraday diving! France's move to file antitrust lawsuit against Nvidia
- Nvidia, the "annoyance" of becoming a giant, will face antitrust charges in France
- The stock price has skyrocketed 35 times in 5 years, and the average millionaire among Nvidia's old employees has begun to "semi retire". New employees are experiencing an inner imbalance
- Nvidia's rating has been rare downgraded, with analysts warning of limited upside potential at present
- Can Nvidia's Nasdaq Technology QDII, the world's leading technology by market value, still be on board?
- The most severe overestimation in 15 years? The number of new non farm payroll jobs in the United States may be 'lowered by one million', and the market is closely watching tonight's heavyweight report
-
【ゆとりサイクルが始まった!歴史を鑑とする:FED金利調整と大統領選結果には“隠れた関連”があった】データによると、選挙日前に金利が引き上げられた5年間で、大統領やホワイトハウスを支配していた政党が4年連 ...
- 不正经的工程师
- 3 天前
- 支持
- 反对
- 回复
- 收藏
-
【トヨタが米国で約4万2000台のカローラCrossをリコール】トヨタ自動車は当時時間9月20日、2022年6月から2024年9月までに生産された一部のカローラCrossハイブリッド車を安全にリコールしていると発表した。リコー ...
- 伍六三
- 昨天 09:38
- 支持
- 反对
- 回复
- 收藏
-
アイルランドのライアン航空のオリーリ最高経営責任者は現地時間9月14日、最近のボーイング社員のストライキが、2025年夏までにライアン社に納入されるボーイング737 MAX機の数に影響を与える可能性があると述べた ...
- rlf2000
- 昨天 20:49
- 支持
- 反对
- 回复
- 收藏
-
インテルは9月19日、イスラエルの自動運転技術会社Mobileyeの大株主として、ビジネスの将来に自信を持っており、現在、同社の株式の多数を切り離す計画はないと発表した。 ...
- hecgdge4
- 3 天前
- 支持
- 反对
- 回复
- 收藏