Artificial intelligence experienced a meteoric rise in 2023, impacting nearly every industry. Now, as we step into the new year, the question looms, how will the technology advance? Patrick Moorhead, CEO and Chief Analyst, Moor Insights & Strategy joined TheStreet to discuss AI’s continued dominance and the stocks and sectors he’s watching.
Full Video Transcript Below:
J.D. DURKIN: I wonder, do you think AI will be nearly as big in 2024 as we saw it be in 23?
PATRICK MOORHEAD: I think it’s going to be bigger in 2024 because you’re going to see a lot more participation in the companies that are benefiting from it. The first wave was all about the picks and shovels, right? The Nvidia’s, the AMD’s, the Broadcom’s Marvell, the chip makers, cloud player, Microsoft in particular. We did see Google go down a lot based on the Microsoft announcement. And then we saw some enterprise players get some help like IBM and Salesforce. This next wave is going to go to the next level of tech, I believe.
So first of all, the chip bonanza is going to continue. We’re going to see companies like Intel be able to take better advantage of it with AI PCS and the data center. We’re going to see Qualcomm and Skyworks be able to take advantage of this through AI based smartphones. And then we’re going to see enterprise SAAS players, right? Others like Adobe and box and then all of even the PC makers. I believe that in mid 2024, we’re going to see a rebound in PCS like we saw during the pandemic. So HP, Lenovo, Dell and even Microsoft will get some help because of Windows.
J.D. DURKIN: Patrick, how do you see AI transforming industries in the next decade? And I wonder, are there particular sectors that you think will be more heavily impacted than others?
PATRICK MOORHEAD: Yeah so I like to look at this in terms of waves. And you know, when we looked at the dotcom, it impacted travel agents, stockbrokers, brick and mortar electronics stores. And then web 2.0 was about context, streaming music and movies. And it was transformative for some companies for like Amazon and Netflix, but quite frankly, wiped out companies like circuit city and even, you know, any place you can go to rent a VHS. This AI wave is going to impact legal healthcare accounts payable, accounts receivable and call centers and anybody that’s involved in those businesses. And interestingly enough, those are the areas that weren’t really touched by their dotcom in the 90s or this web 2.0 in the 2000’s.
