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The IT services stocks benefitting from AI

Softcat and Bytes are profiting by upgrading IT systems for other companies and haven’t had to make the huge investment required of other AI businesses
The IT services stocks benefitting from AIPublished on September 3, 2024
  • Both have strong free cash flow generation
  • As resellers they don't carry any of the investment risk 

The UK stock market might be short of cutting-edge semiconductor manufacturers, but IT services companies Bytes Technology (BYIT) and Softcat (SCT) are hoping to prosper from the billions of dollars being invested into artificial intelligence (AI) computing. 

For businesses to use AI, it is more complicated than just downloading a program onto a computer. To fully benefit, a company not only needs to have all its data accessibly stored but also properly structured. It then needs to choose the right AI model to train on its data.

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