Investors looking for artificial intelligence beneficiaries outside the megacap tech companies can search in a less buzzy part of markets — old economy stocks.
"And that's our investing theme: Old economy companies that are embracing the digital revolution and the suppliers of the digital, you know, generative AI, cloud and cybersecurity tools," Tengler added.
While megacap tech stocks have outperformed this year, helped by a surge of AI enthusiasm, the broader market has been left behind.
But searching for more traditional companies embracing digitization could help investors identify less apparent beneficiaries of the AI boom, she said.
"What we really like are the companies that are embracing digitization in their business, and improving margins," said Tengler, who holds oversized positions in the consumer discretionary, industrials and technology sectors of the market.
Persons:
Nancy Tengler, Tengler, Ken Newman, Emerson, Newman, Oppenheimer, — CNBC's Michael Bloom
Organizations:
Nvidia, Emerson Electric, CNBC, Evoqua, Technologies, Carrier Global, Walmart, Starbucks