Robots and artificial intelligence are the most profitable for investment
Artificial intelligence is developing rapidly, and creating plentiful investment opportunities in its wake.
That development is likely to carry with it major money-making opportunities. The trick is figuring out which corporations stand to benefit most.
"Companies that are early adopters of AI into their business may benefit from the first-mover advantage, increased productivity, reduced costs and potentially greater market shares," a group of HSBC global equity strategists led by Ben Laidler wrote in a client note.
In order to help in the stock selection process, HSBC has identified three primary categories — areas that focus on the hardware components and technology needed to support AI. This is where the firm thinks there's ample opportunities — not necessarily just in software, but also in machinery and tools.
Here are the group (all rationale from HSBC):
Sensors— The development of natural language processing and a range of new enhanced sensors.
Semiconductors — The high performance logic chips that are needed to analyze the data.
Infrastructure and communication— Datacenters will expand to process the data and next generation 5G will be used to receive and transmit data.
Unsurprisingly, HSBC's stock screen is dominated by US and Korean companies. Out of the companies selected by the firm, the following US-listed ones have market values of more than $25 billion: Nvidia, Intel, Honeywell, IBM, Alphabet, Broadcom, NXP Semiconductors, Salesforce.com, Qualcomm, Tesla, Emerson Electric, Parker-Hannifin, Rockwell Automation, Fortive.
/Source: Business Insider/
Jan. 9, 2018