Data Is the New Oil: AI Boom Fuels Demand for Exclusive Data, Making These Four Stocks Prime Winners
In the burgeoning world of Artificial Intelligence (AI), a fundamental truth is emerging: data is the new gold. As AI models like OpenAI’s ChatGPT and Anthropic’s Claude become increasingly sophisticated, their performance hinges on the quality and uniqueness of the data they’re trained on. This realization has created a new breed of winners – companies possessing vast, proprietary datasets that fuel the next wave of AI innovation.
Key Takeaways:
- AI is data-hungry: Advanced AI models, like those powering chatbots, demand massive amounts of high-quality and specific data to achieve human-like responses.
- Exclusive data is the new competitive edge: Companies with exclusive access to unique datasets are poised to dominate the AI landscape, capitalizing on their valuable resources to build powerful AI applications.
- Software value is diminishing, data is rising: As AI models become more readily available, the value of the underlying software may decrease, while the scarcity of high-quality proprietary data increases its value.
The Rise of Data-Driven AI
Yuri Khodjamirian, Chief Investment Officer of Tema ETF, believes this shift towards data-driven AI will propel companies with unique datasets to the forefront. He points out that the AI models themselves, while powerful, are becoming increasingly commoditized. "As the world moves towards AI, you’re going to need high-quality, trusted, well put together data that is unique to specific companies," he explains.
Four Stocks Poised for Growth in the Data-Driven AI Era
Based on this insight, Khodjamirian highlights four key players likely to benefit significantly from the growing demand for exclusive data:
Moody’s: The Power of Credit Data
Moody’s, known for its credit ratings and financial analysis, boasts a vast database on credit decisions, a crucial resource for financial institutions. "Moody’s has a database on credit decisions, and they’re sitting right there on the desks of the bank credit officers making those decisions, collecting that data," Khodjamirian explains. "That database – you can’t recreate it. Once you apply AI tools to that, that data becomes really valuable."
This data is non-replicable and incredibly valuable in the context of AI-powered financial modeling. Moody’s has already seen impressive growth this year, with its share price rising 15% and boasting gross profit margins exceeding 65%. Furthermore, Warren Buffett’s Berkshire Hathaway, the company’s largest shareholder, owns a 13.5% stake, signifying a strong belief in its long-term potential.
S&P Global and MSCI: Financial and Index Powerhouses
Following a similar trajectory, S&P Global and MSCI hold massive troves of financial data and index information. Khodjamirian argues that these companies are well-positioned to capitalize on the rising value of data, as AI models become more readily available and the software behind them becomes less unique.
Intuit: Harnessing Financial Data Across the Board
Intuit, known for its popular tax preparation software TurboTax and small business accounting software QuickBooks, possesses a massive and diverse dataset. "They have hundreds of thousands of clients and hundreds of thousands of data points per client," says Khodjamirian.
This allows Intuit to leverage its vast data to build powerful AI applications tailored to its diverse customer base. This edge, combined with the company’s already established market presence, solidifies its position as a strong player in the data-driven AI landscape.
The Power of Exclusive Data
Khodjamirian emphasizes that these companies are uniquely positioned to capitalize on AI technology. They have the resources to customize and build powerful AI applications using their exclusive datasets, giving them a competitive edge in the marketplace.
"That’s why we really like this space as a way of playing this over the long run," he concludes.
The importance of data in the era of AI cannot be overstated. As AI models become increasingly common, companies with access to unique and valuable data will be the true winners. Investors are understandably drawn to these data-rich companies, seeing them as the keys to building the future of AI.
