From McDonald's to Morgan Stanley, UBS says these stocks are favorably positioned for AI.

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What do McDonald's, Visa, Nike, Chipotle, Shell and Morgan Stanley have in common? They are "favorably positioned," for generative AI, says UBS.

With lawmakers bringing a debt-ceiling deal back from the brink over the holiday weekend, Wall Street looks ready to show its appreciation with a fresh 10-month high for the S&P 500 SPX.

Our call of the day slots right into this theme, as UBS names dozens of stocks “favorably positioned” for the fast-moving technology. To be sure, lower labor costs is a theme running through most sectors, and not all sectors will see increased competitive advantages. Software is one sector where they see the possibility of increased competition via AI, as the technology builds out.

Software: SentinelOne S, CrowdStrike CRWD, neutral-rated Microsoft MSFT, Adobe ADBE and Palo Alto Networks PANWTech hardware: Dell DELL, Quanta TW:2382, Wistron TW:3231, neutral-rated Arista ANET and Pure Storage PSTG For more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to MarketDiem by Investor’s Business Daily.

 

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