From “Hardware Enablers” to “Applied Adopters”
From local companies such as AEM Holdings (SGX: AWX) and UMS Integration (SGX: 558), to global memory giants such as Micron (NASDAQ: MU), SK Hynix (KRX: 000660), and Samsung (KRX: 005930), these hardware enablers have benefited from the rising AI infrastructural buildout. However, the sustainability of their growth remains questionable. Consider this: What if the chip shortage for AI-related semiconductors such as memory modules turns into a glut? Haven’t we seen this movie before? During the height of COVID-19, consumers stuck at home drove massive demand for...Well-known “pick-and-shovel” hardware providers of AI infrastructure such as NVIDIA (NASDAQ: NVDA) need no introduction.
However, effective AI adoption enables another category of enterprises to bring their traditional offerings to a whole new level and raises productivity with unprecedented efficiencies.
These newfound operational advantages set them apart from their competitors.
Notably, they are mostly mature, traditionally non-AI-related companies that often get overlooked amid the intense fixation on AI-infrastructural names.
