How to play the next stage of AI in 2024, according to Canaccord Genuity – CNBC

Canaccord Genuity is laying out some names poised to capitalize on the new stage of AI set to unfold in 2024. "Enthusiasm for AI's potential to improve human life and create business value has captivated investors and played a meaningful role in recent market optimism," wrote analyst Susan Anderson. "As we enter 2024, we anticipate a marked shift from businesses creating AI strategies towards executing them, with a focus on measuring and delivering ROI." Makers of large language models such as Alphabet and Microsoft, and chipmakers such as Nvidia dominated artificial intelligence investing in 2024, boosting the tech-heavy Nasdaq Composite. While those stocks may have won 2023, Anderson believes the market is only in the "early innings of a Cambrian explosion of AI-native applications." Here are some of the companies across sectors best situated to take advantage of the next stage of AI growth: Canccord Genuity sees a plethora of opportunities in the technology space beyond the pure play behemoths that prospered in 2024. Those beneficiaries include software vendors such as HubSpot and those providing the infrastructure for data quality, scalability and model running such as MongoDB . The firm also views cybersecurity stocks as well positioned to benefit as AI attacks increase in sophistication and defenders and cybercriminals battle it out with an array of new generative AI tools. "We believe security vendors will address AI to a much greater extent in 2024 and beyond to stay ahead of the curve or risk losing ground due to competition," analysts wrote. "In the software security section of the report, we address how our coverage companies are implementing and/or enhancing AI strategies." But technology isn't the only industry poised to benefit from AI tailwinds this year and beyond. In fact, the firm labeled a slew of beneficiaries within the health and medical field such as Dexcom and Illumina . DXCM 1Y mountain Dexcom shares over the last year AI implementation can be harnessed to monitor issues such as diabetes can help users monitor glucose levels and assist in DNA sequencing by predicting disease-causing mutations, the firm wrote. Even agriculture is poised to see a significant impact from artificial intelligence, with Deere taking a leadership role in the industry. "Through its centrality within farming operations and vast array of data-collecting sensors, DE's equipment increasingly provides the foundation for many of the AI efforts presently underway in the industry," the firm wrote. "Recent acquisitions focused on precision ag and AI underscore the point." DoubleVerify , Mobileye , Doximity and Amazon were also included in the list. CNBC's Michael Bloom contributed reporting

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How to play the next stage of AI in 2024, according to Canaccord Genuity - CNBC

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