How can I capitalise on the coming AI boom?

machinelearning
ai
investing

#1

I have been reading about the coming ai boom for months now…

According to a report by PWC, AI could add $30 trillion to the global economy by 2030…

How can I invest in this trend?


#2

If you want to be profitable investing in AI you have to have a different angle…

Investing in start-ups producing AI products is probably too straight forward but a different angle would be those companies producing the ai infrastructure…

NVidia is a popular blue-chip producer, but you should try and dig deeper because everyone is investing in NVidia.

Although it is not yet available on pubic markets, you could invest in chip-maker Graphcore when it IPOs

Graphcore is a semi-conductor company that developers chips for AI and machine learning products.

Its received over $110,000,000 in funding from different investors…

It looks to compete with industry giants such as NVidia and Intel.

AI is expected to grow rapidly as the demand for self-driving cars, cloud computing and robotics rapidly increases!

According to a recent ft article, CEO Nigel Toon wants to take Graphcore public as an independently listed company on the UK stock exchange…

Could be interesting!


#3

I agree. There are 16 AI chip makers currently - 5 are public and 11 are private.

I find Graphcore very exciting personally.

• The CEO is a successsful entrepreneur in this field - he sold his company to NVidia in the 2000s.

• Backed by Sequoia Capital, co-founder of Google DeepMind and an Uber Technologies director…

• Aiming to disrupt NVidia

• Aiming to list in UK as Independent company, rather be bought out


#4

I can see why people are lining up to capitalise on the coming AI boom…

The scope for returns looks pretty incredible.

NVIDIA returned nearly 2200% in the last five years


#5

Even if it is looking a little bit expensive at the moment!


#6

Another one of my ideas is Apple…

I think Apple could leave AI late and still enjoy the boom. The power of their brand combined their absolutely enormous cash hoard means they could suck up hundreds of advanced AI start-ups in a few months and then unleash their products on their loyal fans.

They can easily use their iPhone customer base

• Market Cap: $900 billion

• Cash pile: $268 billion

• Ten year return: 1110%

Apple also have something interesting projects down the line like AR glasses, self-driving car tech, AI chips, Siri, smart home tech/ IOT, Data etc…


#7

Fascinating, thanks for sharing…


#8

Interesting article on MIT - it makes similar arguments to the ones made here:

https://www.technologyreview.com/s/609471/the-race-to-power-ais-silicon-brains/


#9

This question has come up a few times, but I will answer it…

There are a few ways to invest in AI/Machine Learning

• FAANG stocks

• ETFs

• Infrastructure


FAANG Stocks
FAANG stocks have a lot of potential regarding machine learning and ai. If you look in the US and eastwards towards China, you see companies driving an enormous amount of resources into big-tech.

I think the potential for big-tech in the US is huge, however I think the fallout will be costly. If I was a betting man, I would say that the automation of basic jobs will create resentment and anger. This anger, combined with the power it will give big-tech, will almost inevitably lead to big-tech regulation.

Also… if you are chasing big returns, FAANG stocks are already very big. If Apple were to double in size, it would be worth a staggering $1.8 Trillion!

ETFs
Passive investing is definitely an option as well. If you were to invest in robotics/ai ETFs, you should choose your entry point very wisely. Today there is an enormous amount of hype regarding the rise of machine learning…and the stock market reflects that.

If you were to invest at time of disillusionment, I think you could make a killing in the long run.

This is against the gospel of index funds, and I daresay John Bogle might not agree.

But even John doesn’t get it right every time.

iShares have an ETF which I was looking at - https://www.ishares.com/uk/institutional/en/products/284219/

Personally, I would avoid these ETFs as the basis of their composition is unclear. They are not tied to an index, meaning that someone just chose them out of nowhere!

Infrastructure
I think the infrastructure for machine learning and ai is far more interesting - mainly the chip companies which produce the technology needed for ai systems.

We have looked at NVidia in a few posts previously that looks that a solid investment.

Alternatively, Graphcore is an english start-up which has been backed by some serious players in the venture business.

Alternatively, you could invest in the iShares PHLX Semiconductor ETF, which focuses on semi-conductors in various industries. It is not exclusive to ai, but it will give you exposure…


What are the top emerging technologies to invest in? (2018)
#10

Just found this a few minutes ago:


#11

Hey, I’m new here

Found this… some of you might find it interest!!!