Robotics Stories: Is artificial intelligence getting real?
- 09 August 2024 (3 min read)
Artificial intelligence (AI) has become a prominent talking point for technology investors, mainly led over the past 18 months by chip manufacturers innovating and producing at unprecedented speeds and scale. An example of the power of AI can be seen in chip designer Nvidia whose share price, earnings, and net income drastically increased over the last year1 with an improvement in the breadth of demand and customer base for their sophisticated graphics processing units (GPUs). Cloud platforms, big data, cybersecurity, networking equipment and datacentre providers are all currently enabling the AI transition to progress. Orders are being placed by companies keen to ensure a consistent supply of the hardware and infrastructure needed to keep up with its processing and data-handling demands. Disruptive technologies, led by generative AI and large language models (LLMs), are beginning to create new possibilities for companies within and outside the technology space. Generative AI has the potential to help businesses streamline processes, increase efficiencies, and significantly increase the reach of automation from the industrial scale, all the way through to individual end customers around the globe. We see this as an inversion of the “AI pyramid”:
While investors’ focus (and capital!) is currently placed on the infrastructure and semiconductors, we believe the real AI economic value will shift towards the application and users of AI – enabling businesses embracing AI to drive new revenue streams, enhance productivity, or generate completely new companies. Industries with the potential to benefit are diverse – manufacturing, logistics, agriculture, transportation and healthcare are to name but a few. Investors may consider a more holistic approach on the investment landscape compared to traditional robotics or technology-centric approaches.
Disclaimer
Companies shown are for illustrative purposes only. It does not constitute investment research or financial analysis relating to transactions in financial instruments, nor does it constitute an offer to buy or sell any investments. Risk Warning Investment involves risk including the loss of capital. The information has been established on the basis of data, projections, forecasts, anticipations and hypothesis which are subjective. This analysis and conclusions are the expression of an opinion, based on available data at a specific date. Due to the subjective aspect of these analyses, the effective evolution of the economic variables and values of the financial markets could be significantly different for the projections, forecast, anticipations and hypothesis which are communicated in this material.
This document is being provided for informational purposes only. The information contained herein is confidential and is intended solely for the person to which it has been delivered. It may not be reproduced or transmitted, in whole or in part, by any means, to third parties without the prior consent of the AXA Investment Managers US, Inc. (the “Adviser”). This communication does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision. © 2024 AXA Investment Managers. All rights reserved