Next AI Opportunities Likely Further Upstream in Supply Chain — Market Talk

The next phase of artificial-intelligence-related investment opportunities may be further upstream in the supply chain, instead of among the most visible AI platforms or chip makers, says T. Rowe Price's Agnes Ng in a note. Advanced packaging, semiconductor substrates and high-end printed circuit boards are among areas that are becoming increasingly crucial, the portfolio specialist notes. While they account for a smaller share of the total bill of materials needed for AI, they can still cause critical bottlenecks, she says. Even modest price increases for these products could meaningfully boost the manufacturers' earnings while remaining manageable for end-customers, she says. (megan.cheah@wsj.com)

Corrections & Amplifications

This article was corrected at 0329 GMT. The earlier version incorrectly named T.Rowe Price's Agnes Ng as Amanda Ng.

(03:26 GMT) Correction to Next AI Opportunities Market Talk

The first name of T. Rowe Price's Agnes Ng incorrectly was given as Amanda in "Next AI Opportunities Likely Further Upstream in Supply Chain — Market Talk," published at 0309 GMT.