WATCH: AI is going to be the big trade for decades, but here are some unconventional names poised to benefit that offer unique exposure. In this episode of In the Money with Amber Kanwar, portfolio manager Seth Allen of Cadence Financial Group at Raymond James shares the clear-headed strategy he’s using to navigate record-breaking markets, central bank decisions, and the AI boom.
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Intact Financial Corporation (IFC.TO): The Risk Maestro
- Why It’s a Winner: Intact Financial has been a silent outperformer, surpassing the TSX with steady gains. Its valuation remains attractive, offering room for growth as AI supercharges its core business.
- Seth’s Take: Seth is drawn to Intact’s dominance in Canada’s property and casualty insurance market, where AI is revolutionizing risk pricing. This tech-driven edge drives profitability and share price momentum.
- AI Edge: Intact harnesses AI to fine-tune risk assessment, making its underwriting sharper and more profitable. In an industry where managing risk is everything, AI gives Intact a competitive moat, quietly powering its outperformance.
EQT Corporation (EQT): Fueling the AI Revolution
- Why It’s a Winner: EQT’s stock has climbed 12% this year despite a 40% drop in natural gas prices, showcasing its resilience. Its strategic move into gas storage could unlock significant upside as AI’s energy demands soar.
- Seth’s Take: Seth highlights EQT’s ability to capitalize on AI’s massive energy needs—data centers require up to 1,000% more power than traditional searches. EQT’s storage assets smooth out volatile gas price swings, making it a smart play.
- AI Edge: AI’s insatiable appetite for power positions natural gas producers like EQT as critical players. With expanding LNG demand and a shift from coal, EQT’s storage capacity ensures it can meet AI’s energy surge, driving long-term value.
Uber Technologies, Inc. (UBER): The Road to Tomorrow
- Why It’s a Winner: Uber is eyeing a $3 trillion market across ride-sharing, food delivery, and freight. AI-driven autonomous vehicles could propel the stock past its all-time highs, redefining mobility.
- Seth’s Take: Seth sees Uber’s transformation as underappreciated, with AI unlocking a massive market opportunity. Its agnostic approach to AI software and vehicle types allows it to adopt the best tech, positioning it for explosive growth.
- AI Edge: Uber’s push into AI-powered autonomous vehicles, already being tested in cities like San Francisco and Austin, promises to slash costs and boost safety. This positions Uber to dominate a future where AI drives everything from rides to freight.
