These 4 companies — including one backed by Warren Buffett — can leverage AI with their exclusive data, says fund manager
Companies with exclusive access to unique data will be well-positioned to capitalize on the next leg of AI advancements, according to Tema ETF’s Chief Investment Officer Yuri Khodjamirian. AI models, such as OpenAI’s ChatGPT or Anthropic’s Claude, are built by running complex algorithms on large amounts of data. The high quality of data is a key component that enables these ‘large language models’ to produce responses almost similar to those of humans. “As the world moves towards AI, you’re going to need high quality, trusted, well put together data that is unique to specific companies,” Khodjamirian told CNBC’s Pro Talks. Khodjamirian, who also manages the Monopolies and Oligopolies ETF , named four stocks that he sees as potential winners: Moody’s , S & P Global , MSCI , and Intuit . “They own lots of financial data, and this financial data can never be recreated,” he noted. Moody’s Using Moody’s as a prime example, the fund manager highlighted the company’s extensive database on credit decisions. “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,” he said. “That database – you can’t recreate it. Once you apply AI tools to that, that data becomes really valuable.” Shares of the company, which boasts gross profit margins of more than 65%, have risen 15% so far this year. Warren Buffett’s Berkshire Hathaway also backs Moody’s as its largest shareholder, owning a 13.5% stake. MCO 5Y line S & P Global and MSCI Similarly, Khodjamirian sees potential in S & P Global and MSCI due to their vast troves of financial and index data. His thesis rests on the idea that as AI use becomes more widespread, the value of software — the AI models — may diminish. However, in this new paradigm, he expects high-quality proprietary data to retain its scarcity and rise in value. There is some evidence of this transition already. Last week, Facebook-owner Meta released the latest version of its artificial intelligence model, Llama 3.1. The company has made the software technology available for free, hoping to undercut rivals such as Microsoft -backed OpenAI and Amazon -backed Anthropic. Intuit Finally, Intuit also caught the fund manager’s eye. The company is known for its tax preparation TurboTax application and QuickBooks small business accounting software. The investor believes the company operates an extensive “horizontal and vertical database.” “They have hundreds of thousands of clients and hundreds of thousands of data points per client,” Khodjamirian noted. Khodjamirian emphasized that these companies will be able to maintain a competitive edge as they are uniquely positioned to use AI models such as Meta’s Llama to customize and build powerful AI applications thanks to their exclusive, well-structured datasets. “That’s why we really like this space as a way of playing this over the long run,” he said. All four stocks are held in Tema ETFs’ Monopolies and Oligopolies ETF. Correction: This story was updated to correct the spelling of Warren Buffett’s name in a headline.
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