Are AI and Robotics Good Investments?

Is AI and robotics and good investment? James Sanders London

It is expected that the robotics market will grow by over $150 billion US dollars by 2025, and that is not only down to growth in commercial use, but it is also anticipates that robotics will become a more integral part of our everyday lives.

We are now using AI in almost every facet of our lives, including the stock market and investments. It is estimated that the global Artificial Intelligence market will grow to over $300 billion US dollars by 2026.

These statistics now make us wonder, are AI and robotics good investments, and if so, which stocks would be the best investments to consider?

Robotics Investments

The robotics industry has seen tremendous growth during the pandemic. Surgical robots have been helping to fight against the Coronavirus outbreak and have been deployed in airports and hospitals to help sanitise and assist in social distancing. Before the Covid pandemic, these innovations had not yet become widespread.

The autonomation industry has seen enormous growth in recent years and uses robotic technology to help transform our lives. Automation can be found in everything from the robot hoover, self-driving cars to industries such as medicine, defence, retail, and food. Of course, there have been robots in manufacturing using automation since the Unimate robot was produced and put to work in 1962.

Robotic Investment Stocks to Consider

  • Intuitive Surgical provides cutting edge robotics and technology to the healthcare industry. The Intuitive Surgical da Vinci robotic system enables minimally invasive surgery and has been used to perform over 40,000 surgeons worldwide. Despite the decline in surgeries due to the Covid-19 pandemic, the 2021 revenue is estimated to be around 17% above 2019 levels.
  • iRobot is worth adding to your investment portfolio. Consumer-focused, this robotics company provide robot vacuums and mops with IoT technology. Ideal for those who want to avoid the hard labour of these types of chores. iRobot reports, “In 2020, iRobot generated $1.4 billion in revenue.”
  • KION Group is a global leader in warehouse automation. Providing technology solutions to improve the flow of material and information in factories and distribution centres worldwide. The KION website states: “Integrated group with scale and synergies – Value creation through joint R&D, scale efficiencies and cross-selling opportunities.”

Artificial Intelligence (AI)

While there is no singular accepted definition of AI, put simply, it is the ability of a machine to embody human-like intelligence with a degree of autonomous capability.

A report by Deloitte states, “AI is a suite of technologies and capabilities which, when adopted, can enable firms to deliver new kinds of value and reshape operating models dramatically. The adoption of AI in investment management is now empowering firms to do things they couldn’t do before: augmenting the intelligence of the human workforce and facilitating the development of next-generation capabilities.”

The report goes on to say, “Man Group has been a pioneer in using AI and alternative data to support alpha generation with funds incorporating AI now collectively managing in excess of US$12 billion. The assets under management of the UK-based hedge fund manager’s AHL Dimension Fund has quintupled since 2014.5 Notably, in collaboration with Oxford University, Man’s AHL unit has established the Oxford-Man Institute to accelerate research into machine learning which underpins AHL’s investment process.”

This was before the exponential rise of AI during a pandemic. So, is now could be the time to invest in AI and robotics.

Artificial Intelligence Stocks to Consider

  • Nvidia manufactures high-powered graphics chips which started in the gaming industry and refined modern graphics as we know them today. They developed GPU learning igniting AI in computers, robots and autonomous machines. Nvidia have just launched their UK supercomputer to enable scientists and healthcare experts accelerate digital biology through their AI and simulation technologies. Probably a good investment when it comes to AI.
  • Sensyne Health is an Oxford based health-tech company who work with NHS trusts to gather and analyse evidence of anonymous patient data through their databases. The data findings are then used to develop digital healthcare products. This has been put to use during the Covid-19 pandemic by launching an AI algorithm to provide hourly analysis and data risk forecasts for the demand of intensive care treatment and the requirement for ventilators. It would seem this company has ambitious growth plans, so certainly one to consider.
  • DocuSign is an electronic esignature company that you have probably used at some point, possibly without even realising. The pandemic has seen more people working from home and using online software more than ever. The contract management service acquired Seal Software to enhance its offerings through the use of AI. Forbes reported in April 2021, “DocuSign went public around mid-2018. Revenues rose from $701 million in 2019 (fiscal years end January), its first full year as a public company to about $974 million in 2020, an increase of about 39%.”

It certainly looks like AI and robotics are indeed good investments. Have you ventured into these markets yet?

Leave a Comment

Your email address will not be published. Required fields are marked *