The Rise of the Machines – Investing in Artificial Intelligence

The Importance Of AI

Impacts of artificial intelligence

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 AI Is An Attractive Investment?

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 AI Stock Portfolio

The Macrovue’s AI stock portfolio is constructed of ten rigorously analysed and carefully selected stocks that we think are best placed to profit from artificial intelligence.

The portfolio focuses on five main AI technology systems in practice now. These companies are the early AI adopters that combine a strong digital capability with proactive strategies that have higher profit margins and are likely to widen the performance gap with other firms in the future.

Our Artificial Intelligence Vue will be launched in April 2018. Create a free account, or login to get expert in-depth analysis of every stock in the portfolio.

To learn more about investing in artificial intelligence, register for our upcoming webinar on May 3, 2018.

About The Webinar

The Macrovue Investment team has researched and constructed a portfolio focused on the five main AI technology systems in practice now.

These companies are the early AI adopters that combine a strong digital capability with proactive strategies that have higher profit margins and are likely to widen the performance gap with other firms in the future.

This webinar will explore:

  • The impact AI will have on the global economy
  • The companies at the forefront of AI technology
  • Why now is a good time to invest in AI technology
  • An overview of top ten AI stock picks
  • Our stock selection criteria and research methodology

Join our senior investment analysts who have 50 years’ combined experience, Clay Carter and Dev Sinha, and our Head of Client Services, Maz Zaman, for this live Q&A information session as they discuss this prime investment opportunity.

REGISTER TODAY

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 | Head of Investment Products

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.