In the search for the next stocks to benefit from the hype around artificial intelligence, aerospace and defense firm
Boeing
might be overlooked.
A potential deal at European rival
Airbus
shows why maybe it shouldn’t be.
Airbus
is in talks to buy the cybersecurity unit of
Atos,
another French company, for about $2 billion, The Wall Street Journal reported. Airbus wants the division to enhance its defense and security portfolio, as well as for the operations with advanced computing and AI.
Boeing
and Airbus are fierce competitors, especially when it comes to making commercial aircraft. Looking at what one company does can give clues to what the other might be thinking.
It makes sense that Boeing could benefit from AI. Particularly in defense, fast analysis of big data would be an asset. Security is also crucial. Boeing was hit by a cyberattack last year by a criminal gang that stole data and held it to ransom.
Boeing shares slipped 1.2% in early trading Wednesday but remained up about 35% over the past three months. Airbus shares fell 3% in Paris trading.
Stocks of the defense firms
Lockheed Martin
and
General Dynamics
were rising, while the S&P 500 was down 0.4%.
Write to Brian Swint at brian.swint@barrons.com
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