Bank of America: Buy these 11 AI-exposed stocks that have both explosive potential and stable dividends

  • Artificial intelligence is disrupting the business world and promises to improve profits.
  • The technology will have a $15.7 trillion impact by 2030, according to Bank of America.
  • Here are 11 stocks tied to AI that have high upside and solid dividends.

Historians may remember 2023 as the year that artificial intelligence became widely available.

Because of their incredible capabilities, generative AI tools like ChatGPT have reached mass adoption in record time, and they are becoming more advanced by the day. Investors took notice and rushed to get exposure to AI stocks, many of which have outperformed this year.

This summer, top investment firms such as Bank of America, Morgan Stanley, and UBS told clients that artificial intelligence is worth the hype. Goldman Sachs agreed, claiming that AI is no longer an experimental technology and that it will significantly increase business productivity and profit margins.

The only question now is how influential AI will be and when it will impact corporate earnings.

Bank of America believes that while AI’s exponential growth will primarily benefit technology companies in the short term, the technology will benefit firms in every sector and industry over the next decade. According to the firm, artificial intelligence will have a $15.7 trillion economic impact by 2030.

“GenAI’s transformation potential will likely be similar to the transformation driven by past disruptive technologies such as the telephone, automobile, personal computer, and internet, which have historically reached mainstream adoption after 15 to 30 years,” wrote Alkesh Shah, BofA’s head of software research Americas, in a mid-October note.

The author went on to say: “However, AI-driven efficiencies and incremental revenue may appear across sectors globally as soon as the next three to five years, far more rapidly than past technologies and investors may anticipate, indicating that upside potential may not be fully priced in.”

11 AI stocks with high upside and dividends

As Insider has reported throughout 2023, there is no shortage of ideas for how to profit from AI.

Bank of America recently compiled a list of 164 buy-rated stocks in various industries related to AI. For those looking to diversify their exposure while investing in technology, the firm also recommended three exchange-traded funds (ETFs): the Global X Robotics and Artificial Intelligence ETF (BOTZ), the Global X Artificial Intelligence & Technology ETF (AIQ), and the iShares US Tech Breakthrough Multisector ETF (TECB).

Few investors, however, have room in their portfolios for hundreds of new stocks. With that in mind, Insider narrowed down BofA’s picks to 11 names with high volatility risk ratings, implying explosive growth potential as well as secure dividends that will not shrink.

The ticker, market capitalization, previous close, sector, industry, and country for each of the 11 high-upside, stable-dividend stocks with AI exposure and a buy rating from Bank of America are listed below, along with the ticker, market capitalization, previous close, sector, industry, and country for each.

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