Bank of America has identified DoorDash (Dash) and Uber as two stocks poised to outperform in the ongoing artificial intelligence cycle, according to a note released to clients this week. The analysts argue that both companies are uniquely placed to harness AI for improvements in route optimisation, dynamic pricing, and customer personalisation, giving them a competitive edge in the gig economy.
The endorsement comes amid a broader market focus on AI beneficiaries beyond traditional chipmakers and cloud providers. BofA believes that the operational data generated by these platforms — from delivery times to rider demand patterns — offers a rich training ground for AI models, potentially boosting margins and revenue growth. The bank did not provide specific price targets but emphasised that the structural advantages of these firms could widen as AI adoption accelerates.
For UK investors, the note underscores the growing importance of US-listed tech stocks in global portfolios. The FTSE 100 has lagged its US counterparts in recent years, partly due to a lack of major AI-driven companies. Many British pension funds and retail investors have increased exposure to US equities through index trackers or direct holdings, meaning moves in stocks like Uber and DoorDash can have a tangible impact on retirement savings and ISA portfolios.
Sector analysts have noted that the transport and logistics industry is undergoing a quiet revolution, with AI enabling real-time decision-making that was previously impossible. 'Firms that can integrate AI into their core operations — not just as a bolt-on — are likely to see significant productivity gains,' said one London-based tech analyst. 'Uber and DoorDash have the scale and data to do this effectively.'
However, risks remain. Regulatory scrutiny in Europe and the US continues to mount over gig worker rights and data privacy, which could weigh on valuations. Additionally, the high valuation multiples of these stocks make them sensitive to interest rate shifts. BofA's call is a bullish bet that AI-driven efficiencies will outweigh these headwinds.
Source: Bank of America Global Research note