AI Application Layer Portfolio — 20 Stocks
Companies that use AI rather than build it, where AI enhances existing business efficiency
Methodology
Select companies that use AI rather than build it, focusing on how AI improves existing business efficiency.
Undervalued (Forward PE < 15x)
| Ticker | Company | Price | Fwd PE | Div Yield | AI Use Case |
|---|---|---|---|---|---|
| CI | Cigna | $286 | 8.5x | 2.18% | AI claims processing |
| JPM | JPMorgan | $306 | 13.0x | 1.96% | AI fraud detection |
| CRM | Salesforce | $180 | 12.0x | 0.98% | Einstein AI sales prediction |
| INTU | Intuit | $304 | 11.2x | 1.58% | Intuit Assist |
| UPS | UPS | $96 | 12.2x | 5.50% | AI route optimization |
| PGR | Progressive | $200 | 12.3x | 2.00% | AI pricing models |
| META | Meta | $612 | 16.9x | 0.34% | AI recommendation/ad targeting |
Fair Value (15-25x)
| Ticker | Company | Price | Fwd PE | AI Use Case |
|---|---|---|---|---|
| V | Visa | $326 | 22.1x | AI real-time authorization |
| MA | Mastercard | $499 | 21.9x | AI network optimization |
| NFLX | Netflix | $89 | 23.1x | AI recommendation |
| DE | Deere | $529 | 23.1x | AI precision agriculture |
| HON | Honeywell | $228 | 19.9x | AI industrial IoT |
| NOW | ServiceNow | $102 | 20.3x | AI IT automation |
| GOOGL | Alphabet | $177 | 15.3x | AI search/Gemini |
Key Insights
- Most attractive: companies where AI is a cost reducer, not revenue driver
- Best value: CI at 8.5x PE, CRM at 12.0x PE, INTU at 11.2x PE
- Strongest AI moat: META (recommendation engine), GOOGL (search AI)
- Dividend + growth: UPS 5.5% yield + AI efficiency gains