According to Tony Kim, Head of Fundamental Equities at BlackRock's Global Technology Team, the next significant phase of AI development will see a surge in application cases from the software industry. This growth is expected to permeate various sectors of society. Software companies are creating bridges for the deployment of AI among businesses and individuals. Kim highlights that AI capabilities are rapidly advancing, indicating more undiscovered applications and opportunities for efficiency improvements. Over time, the costs associated with developing and running AI are expected to decrease.
NVIDIA (NVDA, Financial) is positioned at the heart of AI advancements, driven by global demand for "AI factories" to power these applications. While optimistic about NVIDIA's prospects, Kim is particularly excited about the opportunities within the software sector, as companies integrate AI into their products. Investors should focus on both enterprise-level and consumer-facing applications. Consumer-focused providers include Intuit Inc. and Duolingo Inc., while enterprise software companies such as Salesforce (CRM) and Autodesk Inc. are also noteworthy.
