Stocks in artificial intelligence went like a bullet on the stock exchange this year. This means that many are unsure if much of the upside has been washed away, but Citigroup remains bullish and hopeful for more, now believing that better cash flows will contribute to further upside in the tech sector.
In an update to clients, the analysts wrote that they still see good opportunities in the medium and long term. This is what CNBC writes.
Nvidia led the rally and is up more than 200 percent so far this year.
Citi believes that AI is still in its early stages and expects many companies will provide guidance and therefore also have strong cash flows.
“Profitable stocks that will benefit from AI already have impressive cash flows and are laying the foundations for companies to grow further,” the bank wrote.
This means that Citi has screened a number of stocks that will benefit from AI and is expected to generate better than market expectations and have better profit margins.
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