Estably Blog | Shares
Artificial intelligence shares:
A revolutionary investment in the future?
Published on 24.06.2024
It is considered a branch of computer science, deals with automation and imitates intelligent human behaviour – we are talking about artificial intelligence (“AI”). It is estimated that the market for AI technologies will grow to over USD 2 trillion by 2030. And this harbours a huge opportunity that private investors should not miss out on!
The most important facts in brief:
- 23% of all products and services worldwide are already created using artificial intelligence
- the market for artificial intelligence is currently growing by an average of 25% per year
- an incredible 99% of all executives see AI as a ground-breaking key technology
- In addition to industrial robots, AI is primarily used for voice assistants, autonomous driving and in medicine
- with the help of Estably’s carefully selected investment strategies, you can now benefit from the AI boom in a secure and broadly diversified manner
Imitating human abilities, such as logical thinking, learning and planning, being creative and working flawlessly, has been a dream of mankind for centuries. As early as the 19th century, the visionary Ada Lovelace dreamed of an adaptive machine that could develop genuine creativity and consciousness, but doubted whether this would ever be feasible. In the meantime, there is a wealth of AI applications that could make this former dream come true. The past five years in particular have produced more and more impressive AI solutions that have revolutionized our everyday lives.
Of course, this also harbors huge potential for investors. In today’s article, we would therefore like to take a look at the best AI stocks for you and give you some valuable tips and tricks on how you too can benefit from this gigantic investment trend. You can look forward to the following points in detail:
Contents
- 1 What is artificial intelligence (AI)?
1.1 The evolution of artificial intelligence
1.2 The importance of AI in today’s world
1.3 Technological wonders: bots, neural networks, intelligence and big data - 2. market analysis of the dynamics of the AI growth market
2.1 Figures, data and facts speak volumes
2.2 Trends and developments in the AI market
2.3 Winners of the AI boom - 3. what are the top companies in the field of artificial intelligence?
3.1 Big tech companies: Microsoft, Alphabet and Amazon
3.2 Specialised AI companies: NVIDIA and Palantir
3.3 Start-ups and newcomers - 4. which strategy should you use to invest in AI shares?
4.1 ‘Modern Value’ strategy
4.2 ‘Best of Funds’ strategy
4.3 Advantages - 5 Conclusion: The best way to participate in the AI hype is with the carefully selected strategies from Estably
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1 What is artificial intelligence (AI)?
Artificial intelligence is the ability of computers and machines to imitate or improve on human thought and behavior. In common parlance, however, artificial intelligence is primarily an generic term for applications that imitate or surpass human intelligence. Like humans, computers and machines use data and information to learn new skills or gradually improve their ability to solve tasks. Also known as Artificial Intelligence AI, AI comprises the following sub-areas:
- Machine learning (ML systems) (systems that analyse data and make predictions)
- Algorithms (rules or procedures for solving problems)
- Intelligence and Big Data (analysing large amounts of data to make decisions)
- Super Micro Computer (powerful but extremely small computer)
- Natural Language Processing (NLP) (processing and understanding human language)
- Neural networks (computer models that mimic the human brain)
- Deep learning (machine learning technology with deep neural networks)
- Knowledge representation (representation of knowledge for computers)
1.1 The evolution of artificial intelligence
When we talk about artificial intelligence today, we quickly assume that it is a relatively new technology. But far from it! The foundations for artificial intelligence were laid back in the 19th century, when the British mathematician Ada Lovelace wrote a theoretical programme for calculating Bernoulli numbers in note G of her notes. The first “Analytical Engines“, as the forerunners of today’s computers were called, were already able to mechanically execute simple calculation commands.
However, the real breakthrough did not come until 1956, when the term “Artificial Intelligence AI” was used for the first time at the Dartmouth College conference. Since the early 2000s in particular, artificial intelligence has developed almost exponentially to become what it is today.
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1.2 The importance of AI in today's world
Artificial intelligence is already playing a decisive role today by transforming numerous industries in the long term. It improves decision-making, optimises processes and enables personalised experiences. AI is sometimes used in areas such as healthcare, finance, transport and communication, where it increases efficiency and creates new opportunities. Through machine learning and data analysis, AI contributes to the development of innovative solutions that have the potential to tackle global challenges and improve daily life.
1.3 Technological wonders: bots, neural networks, intelligence and big data
Notable inventions in the field of artificial intelligence include autonomous vehicles that can drive and navigate on their own, virtual assistants such as Siri and Amazon Alexa that provide voice-controlled services and chatbots that answer customer queries efficiently. Neural networks enable advanced image and speech recognition systems, while big data analyses help companies to make informed decisions. In medicine, AI-driven diagnostic tools are revolutionizing the detection of diseases, and personalized recommendation systems are improving the user experience in social media and online shops.
Our personal tip for you:
“As you can see, artificial intelligence is not just a single invention, but a comprehensive industry with a multitude of ground-breaking technical possibilities. In our opinion, it is therefore not just hype, but a genuine paradigm shift in our modern society – and you should definitely participate in this with carefully selected AI shares. We will be happy to show you the best way to do this!”
Estably Asset Management Ltd
Schaanerstrasse 29
9490 Vaduz
Liechtenstein
Curious about personalized advice and tailor-made strategies for your individual situation? Get your free and non-binding initial consultation with us now!
2. Market analysis of the dynamics of the AI growth market
Artificial intelligence is on the rise almost everywhere. Consumers, AI companies and the government and administration sector are benefiting equally from the enormous pace of growth. Advanced AI technology is being used more and more in the corporate sector in particular – helping to save costs, minimise errors and develop and manufacture products and services. At the same time, there is a rapid increase in investment in the AI sector.
This section will therefore take a look at the current state of the global AI growth market and highlight interesting trends and developments. Last but not least, the direct winners of the AI boom will be revealed.
2.1 Figures, data and facts speak volumes
If we talk about the AI market, it currently has a market size of an incredible 168.2 billion euros – but forecasts show that the market volume will increase to 758.4 billion euros by 2030, i.e. more than three quarters of a trillion! That’s almost five times as much (in just a few years!)! Ideally, this would correspond to annual growth rates of 25 %, optimistically even almost 29 %. For comparison: over the past 20 years, the most successful index in the world, the S&P 500, has returned just 7.6 % per year! Other facts, figures and data also speak volumes for the AI market:
- over the same period, artificial intelligence will create an estimated 97 million new jobs worldwide
- Experts believe that AI alone will increase Germany’s GDP by 11.3% by 2030 (or 22% of the USA’s GDP)
- Companies (that use AI) expect an increase in productivity of over 22%
- Only around 13.3% of German companies use AI (so the potential for growth is particularly high here!)
2.2 Trends and developments in the AI market
In many places, however, there is also a fear of potential job losses due to AI – a fear that is largely unfounded. This is because AI is being pushed by companies primarily to counteract the existing Labor shortage. The growing acceptance of AI is remarkable in this context. Around a third of all AI implementations focus on the automation of IT processes (e.g. carrying out calculations, programming, text creation and customer support).
Extensive use of AI is therefore expected in the coming years, particularly in the banking, financial services, insurance and healthcare sectors. While AI is already relieving us of tedious and monotonous tasks, it will create more time and space for creative and inventive activities that will further improve the labour market and our lives.
2.3 Winners of the AI boom
The artificial intelligence and big data boom is benefiting numerous sectors and companies. However, tech giants such as Google, Microsoft and NVIDIA, which develop and offer innovative AI technologies and are therefore among the current top AI stocks, are benefiting in particular. In the automotive industry, AI is accelerating the development of autonomous vehicles. The healthcare and financial sectors are optimising processes through AI-supported analyses and automation. Consumers benefit from personalised services and smart assistants that make everyday life easier.
"AI is one of the most important things humanity is working on. Probably more important than electricity or fire."
Our personal tip for you:
“Although the AI sector itself is experiencing a strong upswing, selecting the right stocks is proving enormously difficult. Similar to the dotcom bubble in the 2000s, when only one or two out of 100 promising web companies actually succeeded. With Estably, you avoid the selection difficulties and only focus on truly established players in the AI market. Feel free to talk to us about it!”
Estably Asset Management AG
Schaanerstrasse 29
9490 Vaduz
Liechtenstein
Curious about personalised advice and tailor-made strategies for your individual situation? Get your free and non-binding initial consultation with us now!
3. What are the top companies in the field of artificial intelligence?
So what are the top stocks in the artificial intelligence sector and why are AI ETFs not really a good solution? Although the AI sector is a promising growth market, not all AI stocks are suitable.
"The search for the right shares is like looking for a needle in a haystack."
Smart investors should therefore rely on the expertise of financial market experts with many years of experience and not buy AI shares themselves in an uncontrolled and indiscriminate manner. Even an AI ETF (such as Xtrackers Artificial Intelligence and Big Data) cannot minimise the risk associated with the latter approach – as there is also a certain “cluster risk” here, as AI ETFs invest exclusively in the AI sector. This selection is much better:
- Big tech companies (such as Microsoft, Google or Amazon)
- Specialised AI companies with a large market capitalisation (such as NVIDIA or Palantir)
- Occasionally also start-ups and newcomers
Find out more about the most successful players on the AI stock market (in our view) in the following subsections!
3.1 Big tech companies: Microsoft, Alphabet and Amazon
Big tech companies such as Microsoft, Alphabet and Amazon are so interesting and successful when it comes to AI because they invest immense resources in research and development. Their AI innovations are driving various industries forward, offering scalable cloud solutions and enabling personalised services. This leading role and continuous innovation make them attractive stocks for investors.
3.2 Specialised AI companies: NVIDIA and Palantir
Specialised AI companies, such as NVIDIA and Palantir, are particularly interesting and successful due to their advanced technologies. NVIDIA dominates with its powerful GPUs, which are essential for AI computing, while Palantir impresses with its leading data analytics platforms. Their specialised products and services are crucial to the advancement of AI, making them attractive stocks for investors.
3.3 Start-ups and newcomers
Last but not least, start-ups and newcomers to the AI market focus on agility and specialised niches. This is because such companies can react quickly to market needs and fill technological gaps. Their potential for above-average growth and disruptive technologies makes them exciting stocks for investors who are willing to take risks.
4 Which strategy should I use to invest in AI shares?
In order to profit from the AI boom now, you don’t necessarily have to get involved in selecting and analysing shares yourself. Incidentally, this is not even advisable! For example, you can rely on a financial market expert and asset manager with many years of experience, such as Estably from Liechtenstein. Our portfolios and strategies are also based on successful shares and funds in the AI sector:
- our “Modern Value” strategy focuses on selected individual stocks (also in the AI sector!)
- our “Best of Funds” strategy builds on the strategies of successful value and quality investors
We would like to explain our advantageous investment strategies in more detail in the following subsections.
4.1 "Modern Value" strategy
Invest with our favourable “Modern Value” strategy in a large selection of hand-picked individual stocks that offer you long-term growth potential, along with a variable, low-risk bond component. In 2023, the “Modern Value 100” strategy achieved a return of 35.7 %! When it comes to AI shares, for example, we focus on companies that develop or use AI (such as Alphabet, Microsoft or Meta). You can choose from a total of five portfolios:
- Modern Value 20 (20 % equities, 80 % bonds)
- Modern Value 40 (40% equity component, 60% bond component)
- Modern Value 60 (60 % equities, 40 % bonds)
- Modern Value 80 (80 % equity component, 20 % bond component)
- Modern Value 100 (100% equity component)
4.2 "Best of Funds" strategy
With our “Best of Funds” strategy, on the other hand, you invest in value and quality investing funds and thus in a broadly diversified and less risky way. Here, too, we rely on the addition of actively managed bond funds. Instead of selecting individual AI shares, the “Best of Funds” strategy focuses on broadly diversified funds with a large number of shares and bonds. With a total performance of 13.78%, the “Best of Funds” strategy also significantly outperformed the average market return in 2023. Once again, there are five different portfolios to choose from:
- Best of Funds 20 (20% equity component, 80% bond component)
- Best of Funds 40 (40% equity component, 60% bond component)
- Best of Funds 60 (60 % equities, 40 % bonds)
- Best of Funds 80 (80 % equity component, 20 % bond component)
- Best of Funds 100 (100% equity component)
4.3 Advantages
By opting for the favourable investment strategies of Estably from Liechtenstein, you benefit from several unbeatable advantages:
- Investment for everyone: Available from a minimum investment of 20,000 euros.
- Fair costs: Our costs are made up of an asset management fee and bank charges. A performance-related fee of 10 % on profits is only charged when the portfolio reaches a new high.
- Investing like the star investors: For private individuals, this is normally associated with considerable additional costs (but not with us!).
- Sustainability: ESG-compliant portfolios are also available.
- Liechtenstein as a financial centre: Benefit from the advantages of the safest financial centre in the world.
- Tax optimisation: In cooperation with prosperity solutions AG, you can wrap our investment strategy in an insurance wrapper and thus optimise your pension provision for tax purposes.
- First-class availability: You can reach your Estably financial market and investment experts Monday to Friday from 9.00 a.m. to 6.00 p.m. by phone, e-mail or live on site at our head office in Vaduz.
- Above-average returns: Achieve above-market returns with our strategies, while taking significantly lower risks.
Our personal tip for you:
“Put your trust in a financial market expert and asset manager with many years of experience like Estably from Liechtenstein. Our portfolios and strategies focus on successful shares in the AI sector and complement these with classic bonds. Would you like to find out more? Then why not arrange a free, no-obligation consultation right away to invest your money safely, long-term and with high returns with a real professional!”
Estably Asset Management Ltd
Schaanerstrasse 29
9490 Vaduz
Liechtenstein
Curious about personalised advice and tailor-made strategies for your individual situation? Get your free and non-binding initial consultation with us now!
5 Conclusion: The best way to participate in the AI hype is with Estably's carefully selected strategies
The AI boom therefore offers immense opportunities that investors should not miss out on. Estably’s carefully selected strategies allow you to invest safely and broadly diversified in leading AI companies. Our “Modern Value” and “Best of Funds” strategies combine the best of individual stocks and funds to provide you with long-term growth and above-average returns. So make sure you take the opportunity now to benefit from Estably’s expertise and advantageous investment strategies!
Estably, based in Vaduz in the Principality of Liechtenstein, offers investors not only access to high-quality portfolios, but also to the attractive benefits of a stable and flexible financial centre. Recognized in prestigious publications such as Forbes, Focus Money and wallstreet:online, Estably offers private and institutional investors a wide range of first-class financial services. Not yet an Estably client? We look forward to getting to know you free of charge and without obligation!
Let us advise you on the topics of finance, asset management, capital investment and much more!
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About Estably
Estably is the first digital asset management company from Liechtenstein to offer first-class wealth management through a blend of technology and human investment expertise. Thanks to the portfolio managers’ many years of experience in the field of value investing, the aim is to achieve above-average returns. The aim is to make professional asset management, which was previously exclusively available to major investors, accessible to everyone – conveniently, transparently and profitably.
