These special tech stocks hit all three of the industry's mega trends, Jefferies says

Published Wed, Jul 15 20202:06 PM EDT

(This story is for CNBC Pro subscribers only.) The coronavirus pandemic is accelerating many key trends in the technology world, and a few companies are poised to enjoy an outsized benefit over the long term, Jefferies said. The bank believes fintech, cloud solutions and artificial intelligence are the three best-performing themes in the mega trend of technological transformation. It identified seven companies exposed to all of these three movements. "A number of mega trends are driving some of the better performing themes and find a number of stocks that are likely to outperform, being exposed to multiple themes at the same time," Simon Powell, Jefferies' equity strategist, said in a note. These companies are: Alphabet , Microsoft , Tencent, Nvidia, Amazon , Intel, and Alibaba . AI Artificial intelligence is increasingly being used in many sectors including health care, finance and education, Jefferies said. Amazon is one of the leaders in this space. Its AWS has an AI-based offering that gives clients access to "image and video analysis, virtual assistants, and forecasting," while the technology is being used in its warehouse, the bank noted. Chinese e-commerce giant Alibaba is the country's "national champion" for developing smart cities using AI, Jefferies said. Google-parent Alphabet also uses AI in speech recognition, its personal assistant platform and its search engine, the bank added. Cloud Jefferies predicted that over the next decade, there will be a tenfold increase in the amount of data that the world produces, which will be a strong tailwind of demand for cloud services companies. "The COVID-19 pandemic and the move to remote work and video conferencing are accelerating moves to the cloud," Powell said. "Enterprises increasingly are seeing the cloud as a digital transformation engine as well as a technology that improves business continuity." Intel and Nvidia are major providers of chips used in date centers, while Amazon, Microsoft and Alphabet are the three biggest players in Infrastructure as a service (IaaS), a form of cloud computing that provides virtualized computing resources over the internet, Jefferies said. Fintech These companies also play an important part in the transformation of finance and banking, or fintech, the bank said. Alibaba is the parent company of Ant Financial, the world's highest-valued fintech company. It is also the owner of Alipay, the world's largest mobile payment platform, which controls more than half of the Chinese mobile payment market, Jefferies noted. Meanwhile, Chinese conglomerate Tencent is also a key player in the space as its WeChat Pay has about 40% share of the Chinese mobile payment market, Jefferies said.

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(This story is for CNBC Pro subscribers only.)

The coronavirus pandemic is accelerating many key trends in the technology world, and a few companies are poised to enjoy an outsized benefit over the long term, Jefferies said.

The bank believes fintech, cloud solutions and artificial intelligence are the three best-performing themes in the mega trend of technological transformation. It identified seven companies exposed to all of these three movements.