(BFM Bourse) – The arrival of the ChatGPT conversational robot has triggered a surge in the stock market around artificial intelligence. And since then, each company has been advertising to integrate AI into its activities. In its coverage universe, TP ICAP Midcap has identified a panel of companies which have already integrated AI into their strategic plan.
Generative artificial intelligence (AI) is undoubtedly investors’ favorite stock market topic of 2023. The recent success of the IPO of Arm, a division of the Japanese conglomerate Softbank, demonstrates the market’s appetite for this theme. For its first day of trading, the stock soared 25% compared to a price already set at the top of the range. Arm’s valuation, currently at $52 billion, now even exceeds those of STMicroelectronics ($39 billion), Infineon ($43 billion) and NXP ($50 billion), the three European semiconductor giants.
Investors are hoping for a stock market fate similar to that of Nvidia for Arm. The world leader in graphics processors is the stock that will panic the counters on the New York Stock Exchange in 2023. The world leader in graphics processors joined the very exclusive club of companies valued at more than 1,000 billion dollars on Wall Street last spring. , in very good company with Apple, Alphabet (Google), Amazon and Microsoft.
A gold rush for generative AI
It must be said that since the start of the year, the share price of the American group has soared by 190%, a jump which is largely explained by the rise of generative artificial intelligence, with Microsoft and Google using Nvidia’s products for their ChatGPT and Bard conversational robots.
“There is a gold rush for generative AI and this is only the beginning,” exclaimed on CNBC Dan Ives, tech sector analyst for Wedbush, after the publication of the stunning accounts from Nvidia.
For TP ICAP Midcap, it is therefore very legitimate and logical that AI is at the center of investors’ concerns. The research firm therefore wanted to measure the repercussions of artificial intelligence on the listed companies it covers in the small and mid-cap universe. TP ICAP Midcap therefore endeavored to bring together a panel of companies from different sectors which have a clear vision of the subject, and which have already integrated this technology into their strategic plan.
If for the design office, it is still premature to quantify exactly the impact of AI on the companies it follows on a daily basis, it nevertheless notes trends that are emerging. TP ICAP Midcap thus assigned a score of 0 to 5 to measure the importance of AI on:
- 1/ the economic model of the company,
- 2/ impact on costs,
- 3/ impact on turnover,
- 4/ impact on competition.
A score of 0 indicates very negative impacts, a score of 5 indicates very positive impacts, and a score close to 2.5 indicates neutral impacts.
For TP ICAP Midcap, a company operating in its coverage universe is particularly well positioned to take full advantage of the growth of artificial intelligence. This is Median Technologies, a company which has been developing new software since 2002 (legally considered as medical devices) based on artificial intelligence technologies for the early diagnosis of cancers and metabolic diseases. The design office gives it an excellent score of 20/20.
The activity and developments of Median Technologies “are largely based on the use of AI tools, which could make it possible to develop new modes of detection and non-invasive diagnostics”, explains TP ICAP Midcap. “The use of AI for image processing and analysis also makes it possible to reduce personnel requirements in R&D operations but also in the services offered to customers,” adds the design office. .
In a diametrically different universe, TP ICAP Midcap cites Arcure, a company specializing in the safety of industrial machines. This company, listed on the stock exchange since 2019, is developing a system based on a stereoscopic camera (or intelligent eye, called “Blaxtair”) which produces 3D images and artificial intelligence capable of analyzing them instantly. The goal: to stop the machine in the event of danger for a pedestrian.
“The latest version of the Blaxtair Origin constitutes the most efficient AI camera on the market in terms of pedestrian detection and will be a major growth driver for the company, and new paid software options and associated additional services will be offered in the new generation of Blaxtair currently in preparation”, estimates TP ICAP Midcap which gives a score of 17/20 to Arcure.
With one point less, therefore 16/20, Sidetrade is the third company cited by the research office. TP ICAP Midcap recalls that this software publisher specializing in fund recovery, dispute management and credit risk reduction invested very early in AI with the acquisition of several start-ups in this field in 2016 and 2017.
These early initiatives in AI allowed Sidetrade to “capitalize on several years of development and to have reached significant maturity on the subject, particularly in relation to its competitors”. The software platform integrates AI algorithms which exploit a unique “data lake” (5,000 billion dollars in B2B transactions), making it possible in particular to produce recommendations. action in real time and push the automation of tasks even further. The group’s advance in AI is also recognized as a strength by the American consulting firm Gartner, specifies TP ICAP Midcap.
Finally, the TP ICAP Midcap team of analysts returned to Exail Technologies (14.5/20), which remember is the former Groupe Gorgé now refocused on drones and embedded systems.
The design office emphasizes that this group uses AI to strengthen the performance of its products and carve out a technological advantage in calls for tender. It takes as an example the AI integrated into the UMIS system (turnkey system of remotely operated underwater drones in swarms) intended for underwater mine clearance from Exail Technologies, which makes it possible to optimize decision-making, interoperability and individual autonomy of robots.
Bilendi and kalray
In addition to the companies mentioned above, TP ICAP Midcap mentions Bilendi, which has just launched an interactive study platform powered by ChatGPT and its proprietary AI algorithms or Kalray in semiconductors whose ambition is to offer a new class of processors, for intensive data processing, and to provide the best solutions in high-growth sectors such as AI, life sciences or scientific research.
“Technology must remain at the service of humans, who will have more time to ask themselves what they can do more and better,” recalls Sarah Thirion in this study dedicated to AI.
However, not all companies covered by TP ICAP Midcap are affected by the rise of AI. The research office cites the following sectors as “potentially less exposed” such as manual professions, construction, catering, hotels, personal services, maintenance or professions linked to creation based on emotion (luxury, content, advertising).
Sabrina Sadgui – ©2023 BFM Bourse