Investing in Artificial Intelligence

20 years ago, the idea of any one investing in artificial Intelligence would have been scoffed at and dismissed as wishful thinking, a sure-fire way to lose your money. Only those with keen and progressive minds would have given it a second thought.

Those progressively minded people would be reaping the rewards today because AI companies have become a very important part of our increasingly digital lives. It has been predicted by many to be fourth industrial revolution the human race will witness.

In simple terms, artificial intelligence is human intelligence exhibited by machines. AI is not to be confused with machine learning and internet of things (IoT) which entails analysis of complex algorithms by and machine to machine interaction respectively. AI in itself involves the expression of such analyzed data using human or sometimes superhuman intelligence.

Different Strokes

While those concerned with ethics have argued about how AI will take our jobs and make us more sedentary and the kind of jobs AI can and can’t do, there is one undeniable fact, which is that it is the most rapidly growing tech industry in the world today. Many companies have made millions from tapping into that fairly uncharted territory, and there is more money to be made!

A recent report by Grand View Research, stated that the global AI market is expected to be worth US$733.7 billion by the year 2027. Presently, it is worth US$35.2 billion. There is an estimated annual compound growth rate of 42.2 percent.

According to the report. North America will largely dominate the AI space due to high government investment, having a high volume of leading players in the niche and required technical capabilities.

With such projected growth potential in the market space, the wise move would be to take advantage of investment opportunities in artificial Intelligence. Investing in AI is much easy, due to the fact there are immense options to choose from.

Some of the investment avenues include;

Exchange Traded Funds (ETFs)

This is specifically for those who would want to broaden their investment horizon, rather than on a specific AI company. The top firms to look at in this system include;

Global X Robotics & Artificial Intelligence Thematic (NASDAQ: BOTZ)

The fund was started four years ago, and already has 34 holdings. Some of their top holdings include NVIDIA and Intuitive Surgical.

ARK Industrial Innovation ETF (NYSEAMERICAN:ARKQ):

This fund was launched exactly six years ago and has 39 holdings, with Tesla (NASDAQ:TSLA), and Protolabs (NYSE:PRLB) being among the top 5.

Robo Global Robotics and Automation Index (NASDAQ:ROBO):

The oldest of the three, has been around for almost 10 years, and has 88 holdings to its name. Topping the list include NVIDIA, Manhattan Associates (NASDAQ:MANH) and Daifuku (OTC Pink:DFKCY).

Stocks

For investors looking to buy AI stocks, there are quite a few good options available, some of which include;

BrainChip (ASX:BRN)-Current market cap: AU$70.57 million

SenSen Networks (ASX:SNS)-Current Market Cap: AU$49.20 million

Appen (ASX:APX)-Current Market Cap: AU$3.14 billion

ProntoForms (TSXV:PFM)-Market cap: C$96.21 million

VIQ Solutions (TSXV:VQS)-Market cap: C$70.5 million

AI Chip Makers

Finally, there’s the option of investing in AI Chip making companies. AI software requires large processing capability and there are few companies capable of producing such powerful processors in large quantities. NVIDIA is leading the market in that regard now, but Intel and Micron also make good investment opportunities.

 In general, for those just learning about the investment opportunities in artificial intelligence, you may have missed out on a good head start, but there’s still ample time to make up.

With so much confidence in the amazing growth potential of the sector in coming years, now is the time to make your move. Our broker partners sort out the best investors in this sector. They also recommend high performing traders that you can follow through copy trading and get the exact result as they.

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Author: Jofor Humani

Peddling words has been a passion beneath the surface. I speak less than I write...naturally. Aside speaking and writing, I walk too...good for your heart they say. I sometimes do not feel like writing. Then I enjoy quiet times which I use to think and stay with family.

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