Bernstein analysts claim that the generative AI technology is “neutral to potentially positive” for IT hardware companies.
The emerging technology “will be significantly productivity enhancing,” says the analysts.
“We believe consultants could be among the initial winners, as enterprises are likely to seek help in their AI journeys, akin to digital transformation,” they said in a client note.
Among the companies in Bernstein’s research coverage, the analysts highlight IBM (NYSE:IBM) as “best positioned to capitalize on AI, given its traditional account control, its long history/brand with AI via Watson, its RedHat platform and its large consulting business.”
“That said, execution is paramount - IBM has struggled to date in commercializing Watson and was nearly a decade ahead of AWS and Azure in developing a cloud offering, and was not able to capitalize,” they added.
Elsewhere, the analysts also say that Hewlett Packard Enterprise (NYSE:HPE) has already benefited from the AI but “remains unclear whether HPE can be profitable, particularly given its historical experience in selling to hyperscalers.”
On the other hand, Dell’s (NYSE:DELL) AI opportunity “seems more limited.”