The biggest beneficiaries of this trend are currently AI infrastructures. Tomorrow, other business sectors will benefit from these advances, including robotics, automation, drug discovery and cybersecurity. Given the energy needs of AI, power grid builders and energy producers close to data centers are well exposed.

Companies around the world are investing heavily in AI, and this trend is set to continue in order to remain competitive. AI-powered digitization is a trend that currently seems unstoppable. However, risks include new regulations, supply chain disruptions, technology disappointments and high valuations.

The estimated sales generated by generative AI up to 2032 are shown below:

According to these forward-looking studies, there's still a long way to go.

According to Gartner, 80% of global companies will be using generative AI by 2026, compared with less than 5% in 2023. Demand for AI-enabled chipmaking equipment is accelerating. For example, the world's largest manufacturing foundry in Taiwan (TSMC) is forecasting 50% annual growth in AI-related revenues.

Many countries are increasing subsidies to revitalize domestic semiconductor manufacturing. The CHIPS Act in the USA has announced over $23 billion in subsidies. The European Union aims to double its global semiconductor production to 20% by 2030 with a $47 billion package. Japan has also allocated $25.7 billion to attract major players, including Nvidia, Broadcom, AMD, Intel, Qualcomm, ARM, TSMC, ASML and Applied Materials.

Growing demand for AI computing power is driving innovation in AI infrastructure and data centers. Most of the demand for AI computing comes from large language model (LLM) training. Once training is complete, computational demand is expected to drop, and inference is likely to become a focal point.

The International Energy Agency (IEA) estimates that electricity consumption could double by 2026, fueled by demand from data centers, AI and crypto-currency mining. Power grid builders and energy producers close to data centers could continue to perform well. Companies well positioned for electrification include Schneider Electric, Siemens, ABB, Eaton, Vertiv, Trane Technologies and Hitachi.

Here are a few ideas for finding interesting companies on the topics covered:

As the AI revolution expands over the coming years, new opportunities will emerge. Investors must therefore remain vigilant to the risks, while capitalizing on the many opportunities offered by this revolutionary technology.