Robotech Stories: Artificial intelligence gets real
- 10 June 2024 (5 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 clients 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 enable businesses to 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’:
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Whilst investor’s focus (and capital!) is currently placed on the infrastructure and semiconductors, we believe that 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. AXA IM’s Robotech strategy adopts a more holistic approach on the investment landscape compared to traditional robotics or technology-centric strategies, thereby embracing more widely the anticipated growth trajectory of future AI revenue sources.
Companies shown are for illustrative purposes only as of 10/06/2024. 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, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalised recommendation to buy or sell securities.
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No assurance can be given that our investment strategies will be successful. Investors can lose some or all of their capital invested. Our strategies are subject to specific risks including, but not limited to: equity; emerging markets; global investments; investments in small and micro capitalisation universe; investments in specific sectors or asset classes, volatility risk, liquidity risk, credit risk, counterparty risk, derivatives risk, legal risk, valuation risk, operational risk and risks related to the underlying assets. Some strategies may also involve leverage, which may increase the effect of market movements on the portfolio and may result in significant risk of losses.
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This marketing communication does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision.
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.
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