In the rapidly evolving landscape of artificial intelligence (AI) stocks, the spotlight often shines on American companies like Nvidia and Meta. However, the UK also boasts a plethora of shares that allow investors to tap into the AI sector. Let’s delve into a couple of strategies investors can employ to navigate this burgeoning market.
Buying into the US indirectly
One strategy is to invest in UK investment trusts that hold stakes in US tech behemoths. For instance, Scottish Mortgage Investment Trust counts Nvidia among its top holdings, making up about 4% of its total value. The trust also boasts a significant position in ASML, a rival chipmaker. With a tech-focused portfolio that extends beyond chip manufacturers, Scottish Mortgage also invests in tech innovators like Tempus, a company using AI to revolutionize healthcare diagnostics and treatment.
Dabbling in individual UK shares
While investment trusts offer exposure to US AI giants, some investors might prefer to explore individual UK shares directly linked to AI. Companies such as AstraZeneca and Relx integrate AI into their business models to drive efficiency and cost savings. Considering the complex nature of AI investments, it’s crucial not to overlook potential opportunities in UK-based enterprises.
Taking a closer look at Computacenter
An intriguing contender is Computacenter (LSE: CCC), a provider of IT services and equipment to a diverse array of commercial clientele. With AI poised to reshape businesses across various sectors, Computacenter stands to benefit from the surge in AI spending. Although the company’s recent trading update did not explicitly mention AI, its report highlighted strong order intake, particularly in North America, underscoring the growing demand for AI-related infrastructure solutions.
Despite facing challenges such as fluctuating sales revenues and geopolitical uncertainties, Computacenter remains a robust investment choice with a solid business model, a broad customer base, and extensive industry expertise. With a reasonable price-to-earnings ratio of 15, Computacenter presents a compelling opportunity for UK investors seeking exposure to the AI sector.
In a market brimming with potential, UK investors exploring AI shares should undoubtedly keep an eye on Computacenter as a promising contender.
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