BROKERS’ NOTES: Buy the new wave, ditch the fossils

David Shapiro: Sasfin Securities 

Buy: Nvidia

I’d use Nvidia as a proxy for artificial intelligence (AI) and the market’s enthusiasm for this. It’s at the forefront of the AI wave and this enthrallment is not going to slow down. AI is going to make it easier for businesses to disrupt entrenched models and I think it will have a marked bearing on the profits and productivity of major companies. You could include a number of other businesses as your entry into AI, such as Microsoft or ASML. But this is the scout leader. Also, these businesses are staring you in the face; don’t be too scared to trust your judgment.

Sell: British American Tobacco

Who the hell smokes any more? We all understand that the noncombustible products are growing, but everyone is turning against smoking and even the new tobacco products are going to come under the microscope of all health industries. It’s a shrinking industry, so I don’t care that it gives you nice dividends. It’s not an industry that you want to be associated with — it’s the antithesis of a growth industry.