10/23/2023 0 Comments Big bad principal![]() ![]() These tangential themes could offer investment opportunities, especially as market breadth improves. Many components will play a role, including the need for greater computing power, memory and storage, business services, and cybersecurity. For investors, it’s important to consider the broader AI story. I think this combination of factors sets this wave of technological advancements apart from others, increasing the potential for widespread integration of AI. Third, growing awareness and understanding of AI’s capabilities can lead to more pragmatic and focused approaches towards its implementation. Roughly one-fifth of big tech’s combined acquisitions and investments since 2019 involve AI companies, and this influx of capital is fueling further innovation and accelerating the adoption of AI across industries. FOMO is real, and this “fear of missing out” can lead to innovation. Second, the significant surge in investor interest and funding in AI-related ventures indicates a strong belief in this technology’s long-term potential. Since its launch for public use in November 2022, ChatGPT has scaled to over 500 million global users, and OpenAI expects revenue to jump from $200 million this year to $1 billion next year. ![]() First, the pace of technological advancements in AI is unprecedented, leading to greater potential for disruption. I hate to start with a cliché, but with AI, this time feels different to me. Do you view artificial intelligence (AI) as aspirational, or is it a real sea change? Much of the AI trade this year has been concentrated in a few names driving returns, how can investors find exposure to AI beyond the narrow leadership? To close it out, Jon and Scott give a nod to their favorite themes right now (and they’re not just AI). Rates at 5% have appeal, but investors must keep an eye on inflation, even as it trends in the right direction. With so much uncertainty over the past year, investors have had viable options in fixed income for the first time in a long time. Recent capex growth and corporate earnings suggest there’s reason for optimism. How companies invest in AI and technologies that create new efficiencies and a potential productivity boom can be critical to understanding the state of the economy and the market. Jon and Scott put the AI wave in perspective with thoughts that go beyond software. Chief Investment Officer, Jon Maier, and Head of Thematic Solutions, Scott Helfstein, offer their perspectives on the current investing landscape, which today can be described as AI all the time, at least in some circles.
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