Artificial intelligence, robotics or blockchain will grow at a dizzying rate in the coming years. Below we present some of the actions in these themes that analysts like the most.
Now that we are still at the beginning of the decade, and taking into account the pace at which new technologies are advancing, many are wondering what the world will be like ten years from now; the world and also the stock market. Cathie Wood, founder and CEO of Ark Invest, seems to have the answer to that question thanks to her long-term vision, although only time will tell if her financial decisions are the right ones.
Wood is one of the privileged minds of the current moment in the field of investment and among his favorite words are innovation, disruption and conviction. She used them again a few days ago at the Big Ideas Summit 2022, a virtual summit at the highest level organized by herself, in which she redoubled her commitment to cutting-edge technologies despite the volatility of the stock markets and the rotation towards sectors defensive.
And so, at Ark they have identified fourteen transformative technologies that are approaching their tipping points as costs fall, unleashing demand across industries and geographies. They are artificial intelligence, cloud computing, the Internet of Things, connected mobile devices, batteries, blockchain, digital wallets, autonomous mobility, robotics, 3D printing, reusable space rockets, gene editing and sequencing, and gene therapy.
In 2020, the attributable value of all these thematic areas was approximately 14 trillion dollars, according to data provided by Ark, but the figure could reach 210 trillion in 2030. However, they highlight that there are five innovation platforms that will generate important long-term stock market returns. While non-innovation stocks will grow 3% per year between 2020 and 2030, artificial intelligence is projected to grow 26% per year and reach a market value of $108 trillion.
It will be accompanied by the chain of blocks, with a compound annual growth rate of 43% and a value of 49 trillion; robotics, with an annual growth of 51% and a market of 10 billion; energy storage (35% per year and value of 32 trillion) and DNA sequencing (40% per year and value of 3.6 trillion).
But although there are differences between all of them, the convergence between technologies is seen as a key element to expand their potential. For example, they point out from Ark, “the convergence of application programming interfaces (APIs), social networks and blockchain technology could integrate the markets of companies and consumers, disintermediating the intermediaries that dominate the financial ecosystems”.
Artificial intelligence
Computer programs and other computer systems that learn and change by integrating new data could be useful in solving seemingly impossible problems. “The adoption of learning systems could be more momentous than the introduction of the Internet, transforming all economic sectors, including healthcare and financial services,” says the latest Ark Big Ideas report. Also, “concentrated computing infrastructure could allow each device to harness the power of supercomputers, enabling continuous, data-driven improvements to software.”
How to invest in artificial intelligence? At elEconomista we have selected three stocks that are representative of this transformative technology and that receive a buy recommendation from the consensus of analysts collected by FactSet. One of them is Salesforce, which has an intelligent assistant called Einstein. The US company is the world’s largest provider of customer relationship management (CRM) technology.
As they themselves explain on their website, “an AI-powered CRM provides businesses with a more comprehensive view of each customer because AI tools collect and analyze vast amounts of customer data across all channels, then process that data to learn to understand, predict outcomes, and recommend or implement the next step in the customer journey.” In addition, Salesforce shares have a 50% bullish potential on the stock market, with which they could reach $325.6 in the next twelve months.
Another stock is Marvell Technology, known for the design of microchips. “Marvell’s data processing units (DPUs) are among the most advanced chips on the market, capable of handling the enormous amounts of information needed to train and deploy AI,” manager Nicholas Rossolillo explained last year on the AI portal. financial information The Motley Fool. Some microchips that would also be prepared to collect data from the source in real time, essential in the context of 5G mobile networks.
And finally, with an upside potential for its shares close to 45%, there is also the American Datadog, which offers a monitoring and analysis tool for information technology teams. And how does AI fit in here? As operational tasks consume an increasing share of engineering time, Datadog provides built-in machine learning to simplify the complexity of managing and monitoring fast-growing environments.
robotics
3D printing and adaptive robots shorten the footprint of the supply chain, enable digital inventory and reduce material waste while reducing costs and production time, indicate from Ark Invest, adding that the adoption of systems robotized tends to accelerate with each economic crisis.
To invest in this theme, the three options supported by analysts with advice to buy their shares are the North American ServiceNow and OmniCell and the Japanese Fanuc Corporation. First, ServiceNow is chosen for its recent exposure to Robotic Process Automation (RPA), an easy-to-use software technology for anyone who wants to automate digital tasks.
The company acquired India’s Intellibot last year to complement its services. “You have to keep in mind that the RPA sector is one of the hottest in the world of technology. After all, the ROI (return on investment) is usually strong and fast,” Tom stressed almost a year ago. Taulli on Forbes.
Second, two robot manufacturers stand out. One is the Japanese Fanuc Corporation, a specialist in industrial automation, from robots to vertical machining centers or numerical control systems. For its 2023 benefits, multiples of 22.9 times are paid, something that contrasts with the higher ratios presented by other technology firms.
The other investment suggestion is OmniCell, which specializes in the automation of drug storage and dispensing systems with the aim of improving pharmaceutical inventory management in hospitals.
battery technology
Energy storage is gaining momentum due to declining costs and growth in solar and wind power generation. “The largest component of the cost of an electric vehicle is its battery, whose decrease will be essential to achieve price parity with gasoline vehicles. Lithium-iron-phosphate (LFP) cells, less expensive and with lower production than nickel, could accelerate the decrease in costs and prices,” they maintain from Ark Invest.
One of the stocks to invest in on this issue is Enphase Energy, which “is positioning itself as a key enabler in a world that goes beyond net electricity metering, where consumers have greater control of their power generation,” reports Needham. “Enphase will eventually allow EV charging to work alongside everything else in a home,” she observes.
Another investment idea is Clearway Energy, one of the largest renewable energy owners in the US, which late last year announced the construction of the largest solar power and battery storage project in California, which upon completion will have storage capacity of power of 349 MW.
On the other hand, but from Europe and as an investment idea in batteries but from electronics, there is the German company lnfineon, also with a buy recommendation. It produces transistors to amplify or switch electronic signals, such as the so-called OptiMOS, which are used in the design of energy storage systems.
‘Blockchain’
Public blockchains are driving new forms of coordination in the realm of money, finance, and the Internet. “By decentralizing institutions with open source software, blockchain technology minimizes the need to trust centralized authorities,” the Ark report notes.
“We believe that bitcoin is the deepest application of public blockchains, the foundation of self-sufficient digital money. The Bitcoin protocol has enabled two other revolutions: the Financial Revolution (DeFi) and the Internet Revolution (Web3),” he highlights. Cathie Wood’s team.
In this field, among the actions that receive a purchase advice, PayPal, EPAM Systems and Signature Bank stand out. Despite the fact that Ark has sold almost all the PayPal shares it had on its balance sheet this week, the electronic payment company has the backing of the analyst consensus.
“PayPal is betting on the engagement of users with its new super application that combines shopping services, buy now, pay later and banking services, including investments and cryptography, to maintain a growth of 20% in the medium term”, says Julie Chariell, Bloomberg Intelligence analyst.
PayPal allows merchants to accept bitcoin payments through its subsidiary Braintree, and its digital wallet applications, such as Venmo, “are working on other ways to incorporate blockchain and cryptocurrency buying and selling functions,” they say in The Motley Fool .
PayPal’s shares have an upside potential of close to 60%, while EPAM Systems’ share is close to 70%. It is an American firm that specializes in digital platform engineering and digital product design, being one of the world’s largest manufacturers of custom software. As they say on their website, “today, we help our clients create business blockchain solutions from scratch, as well as…
Facebook Comments
Disqus