It is clear to Morgan Stanley that artificial intelligence will play an increasingly important role in people’s lives in the future. This concept, which the brokerage house calls “Edge AI,” involves running AI algorithms directly on devices such as smartphones, laptops or other mobile devices.
This trend continues
“In 2023, it is about generative AI, the cloud, GPUs and hyperscalers, and this will remain at the core of machine learning development,” Morgan Stanley wrote in a report, according to CNBC.
Analysts expect Edge AI to be able to save costs and reduce waiting time or delays. Going forward, AI-powered consumer experiences will be integrated into everyday devices, which could provide a number of opportunities for investors, according to Morgan Stanley. Examples of everyday applications for Edge AI include facial recognition on smartphones and speech recognition in smart speakers.
Six AI favorites
The brokerage singled out the following six companies that are poised to benefit from this trend and are likely to do well in 2024 and 2025: Apple, Dell, MediaTek, Qualcomm, STMicroelectronics and Xiaomi.
“Apple has also been a leader in Edge AI applications on phones and devices. Furthermore, we believe that trust in Apple’s data collection, and large user base, gives Apple an added advantage in using cutting-edge AI applications to exploit new data.”
Analysts describe Dell as the company best positioned to benefit from the cyclical rise in hardware and the long-term growth of AI-related infrastructure.
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