What is enterprise AI and why is it important for investors?

Enterprise AI refers to artificial intelligence systems and technologies specifically designed for business use. Unlike consumer AI (like ChatGPT), enterprise AI focuses on improving business operations, automating processes, and generating business insights. For investors, this represents a massive opportunity because companies are spending billions to implement these technologies to stay competitive. The stocks in this basket are positioned to benefit from this long-term spending trend across different parts of the AI ecosystem.

What does digital transformation mean in the context of these stocks?

Digital transformation is the process of companies modernizing their technology systems and business processes using tools like cloud computing, artificial intelligence, and data analytics. For businesses, this means upgrading outdated systems, automating manual processes, and using data more effectively to make decisions. The companies in this basket either help businesses implement these changes (like IT consultants), provide the platforms where these transformations happen (like cloud providers), or manufacture the hardware that powers these new systems (like chip makers).

What are "AI bookings" and why do they matter?

AI bookings represent contracted business for AI-related services or products that will generate revenue in the future. When companies like Accenture report $1.5 billion in new generative AI bookings, it means they've signed contracts worth that amount for AI implementation projects. This matters to investors because strong bookings indicate growing demand and provide visibility into future revenue streams. Rising AI bookings across the industry suggest we're at the beginning of a significant, long-term spending cycle on enterprise AI technologies.

How does the "AI value chain" work?

The AI value chain represents all the companies involved in creating and implementing AI solutions. At the foundation are chip manufacturers like Nvidia and AMD that make the specialized processors needed to train and run AI models. Next are cloud platform providers like AWS (Amazon), Azure (Microsoft), and Google Cloud that supply the infrastructure. Software companies create the AI applications and tools, while IT consulting firms like Accenture help businesses implement everything. This basket gives you exposure across this entire chain, so you can benefit from the enterprise AI trend regardless of which specific technologies ultimately win out.

15 handpicked stocks

Enterprise AI Revolution

Tap into the massive corporate spending wave on artificial intelligence and digital transformation. These carefully selected stocks span IT consulting, cloud infrastructure, and the hardware powering the next generation of business technology.

Han Tan | Market Analyst

Updated 2 days ago | Published at जुलाई 2