Why Invest In Artificial Intelligence?

The Impact of AI

Computers are now able to perform tasks that were once considered the exclusive domain of the human mind

With advances in computing power, the increasing sophistication of learning algorithms, and of course the “cloud” which makes aggregated large data sets and cheap computing power available to data scientists who want to build and “train” AI algorithms, computers are now able to perform tasks that were once considered the exclusive domain of the human mind.

These “self-learning” systems are impacting nearly every industry vertical from manufacturing to financial services, giving rise to new business models while making some legacy models obsolete.

Nearly every major technology player is employing ML (machine learning) driven intelligence in some form or another.

$12.5 billion in 2017 of worldwide revenues for AI

AI_worldwide_spending

International Data Corporation (IDC) estimates worldwide revenues for cognitive and artificial intelligence (AI) systems were in excess of $12.5 billion in 2017, an increase of 59.3% over 2016.

Global spending on cognitive and AI solutions will continue to see significant corporate investment over the next several years, achieving a compound annual growth rate (CAGR) of 54.4% through 2020 when revenues will be more than $46 billion.

That’s more than twice the growth rate of other high-growth tech subsectors such as Big Data (+23%) and the Cloud (+20%).

Why Is AI An Attractive Investment Theme?

At Macrovue, we believe that AI is an exciting and investable theme. It has all the characteristics that we value when creating a thematic portfolio – we are getting in early, the addressable market is vast, there is a large and diversified universe of public companies to choose from and the investment horizon is decades long.

Also important in any high growth / disruptive theme is that there is a well- funded and visible pipeline of start-ups that will eventually come to the public markets.

Venture Capital site Angel List currently lists more than 3,500 AI startups with an average valuation of nearly $5 million. That marks a 75 percent increase in the number of AI startups on the site since earlier this year.

Analyst firm CB Insights notes that corporate giants like Google, IBM, Yahoo, Intel, Apple, and Salesforce.com are competing in the race to acquire private AI companies, along with with Ford, Samsung, GE, and Uber.

Macrovue’s Artificial Intelligence Vue

The Artificial Intelligence Vue is a concentrated portfolio of high-conviction positions in ten stocks, researched and analysed by our investment team. To watch the stocks in the portfolio and read in-depth analysis from our experts who have 50 years of combined experience, create a free account.

Watch our Head of Investment Committee, Clay Carter, giving some details about the portfolio.

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Meet Macrovue's Investment Team

Clay Carter | Head of Investment Committee

Clay has 25+ years experience managing global equity portfolios. Most recently, he was Head of International Investments at Perennial Investment Partners. Previously, Clay managed investment portfolios at QBE, PM Capital, Legal and General Life of Australia, and AMP. He has developed alternative methods to traditional market analysis and portfolio management and regularly appears on CNBC Asia and Bloomberg TV.

Dev Sinha | Chief Investment Officer

Dev is the co-founder of Macrovue and leads the Equity Research and Product Development teams. He started his career as a quantitative analyst at Putnam Investments in Boston before moving to Singapore to join Bank of America Merrill Lynch. Dev has an MBA from The Fuqua School of Business, Duke University and an MS in Financial Engineering from Columbia University.

Dr. Sid Sahgal | COO

Sid brings almost 20 years of experience in finance and technology. He started his career at Honeywell Aerospace as a software engineer before moving to Bank of America Merrill Lynch in New York as a quantitative analyst. Before starting Macrovue, Sid was a lecturer at UNSW while completing his PhD in Finance. He also holds a Masters in Computational Finance from Carnegie Mellon University.

Find out which 10 artificial intelligence stocks were hand-picked by experts and receive brokerage credit up to $600 for trades before June 30, 2018.