Artificial intelligence shares: in which sectors are they offered? Artificial intelligence (AI) helps machines to act and learn on their own. In the process, they perform enormous cognitive feats.
Whether for image and speech recognition, in robotics or in healthcare: Artificial intelligence will not only revolutionise numerous economic sectors, but also everyday life. Therefore, for example, diseases can be cured better and industrial manufacturing processes can be accelerated.
Due to the high benefits of artificial intelligence and the good prospects for the future, AI shares are particularly popular. Nevertheless, investments carry risks that investors should keep in mind.
In this article, you will learn what you should consider when buying AI shares. In addition, we inform you about the sectors in which artificial intelligence stocks are offered.
What all belongs to Artificial Intelligence?
But first of all, it is necessary to explain what is counted as artificial intelligence in the first place.
AI is an important branch of computer science. Basically, AI refers to systems that can perform similar intelligent tasks as humans. The systems are able to
- process natural languages (NLP)
- analyse huge data sets (deep learning)
- and to learn by machine (machine learning).
The focus of all activities is on analysing, solving problems and making judgements. Therefore, AI is applied in different economic sectors.
Artificial Intelligence Shares: 7 Industries
Which companies are developing artificial intelligence? And in which sectors can AI shares be acquired at all? You will find answers to these questions in the following section.
Artificial Intelligence Shares: Chip Manufacturer Industry
All applications based on AI require large computing power. For this reason, there is a huge demand for powerful microprocessors. Experts believe that the demand for high-tech chips with integrated AI functions will increase. Well-known chip manufacturers include Nvidia, Intel and Advanced Micro Devices.
Autonomous driving and autonomous flying
Intelligent driver assistance systems support drivers and minimise the risk of accidents on public roads. For cars to be able to drive autonomously, however, more intensive research is essential. Automotive companies such as Tesla and Uber are involved in this research. But Google and Apple are also undertaking major research efforts.
As far as the latest developments in the field of autonomous flying are concerned, Airbus and Boeing are leading the way.
Currently, it can be assumed that systems for intelligent customer care will revolutionise communication in the near future. Customers in particular will benefit from this, as there will be no waiting in call centres. Microsoft and Salesforce are currently involved in the development of such intelligent systems.
Artificial Intelligence Shares: Medical Sector
Artificial intelligence can search large databases quickly. This enables it to quickly recognise diseases. It also facilitates the treatment of patients. Well-known companies in the medical sector include Teladoc and Siemens.
Artificial Intelligence Shares: BIG Data
In the meantime, there are companies that have specialised in the evaluation and structuring of large amounts of data. These include Facebook, Zalando and Amazon.
Especially in the virtual world, fast reaction times are important in video games. Companies such as Electronic Arts use AI to ensure an ideal gaming experience.
Artificial Intelligence Shares: Asset Management
Asset management ensures efficient management of all types of assets. It aims to minimise costs and provide security on the premises. To improve management, the use of AI is essential. Common companies in this industry are SAP as well as Schneider Electric.
Artificial Intelligence Shares: Important Considerations
When investing in Artificial Intelligence shares, you should consider the following aspects.
- Artificial intelligence shares are subject to large fluctuations. Therefore, investments should always be well thought out. This also applies to investments in shares of start-ups. These are often bought up by tech companies such as Facebook or Apple.
- Bear in mind that AI shares can quickly lose value and disappear from the stock market. This is illustrated by the Augusta Intelligence case.
- If you buy artificial intelligence shares, you should always keep political risks in mind. These could have a negative impact on share prices.
Who is the leader in Artificial Intelligence?
In the field of AI, technology companies from China, the UK and the US are global leaders. In the EU, on the other hand, there is scepticism about data protection.
AI ETFS as an alternative
Investors not only invest in traditional AI stocks, but also in AI ETFs (Artificial Intelligence ETF). These are investment funds traded on stock exchanges. By investing in AI ETFs, investors aim to spread risks while benefiting from rising share prices. In doing so, they often rely on the expert knowledge of the issuers.
Well-known examples of investment funds are Xtrackers Artificial Intelligence and Big Data UCITS ETF 1C and Deka Germany 30 UCITS ETF DE000ETFL516.
What are the risks of investing in shares?
In principle, capital investments in shares are risky, as
- unexpected price fluctuations can occur at any time,
- Share prices depend on political conditions,
- the overall economic situation has an influence on share prices, and
- and dividend payments depend on corporate profits.
Artificial Intelligence Shares: Lawyers advise on risks!
Are you thinking of investing in AI shares and would like detailed information on the risks? The Herfurtner law firm will inform you in detail about the dangers of investing in AI shares.