Articles about AI’s benefits and consequences are so abundant that it’s difficult to comprehend
Chatbot notes the increasing relevance of AI in society, which is obvious. Unlike the Segway, AI isn’t fading away anytime soon.
Investor interest in AI has driven the market valuation of chip maker Nvidia to $US1 trillion+, prompting the hunt for local equivalents.
While many ASX-listed tech stocks are delving into AI, few are pure-play and some are obscure.
Examples include Brainchip ($730M market cap) commercialising Akida, a neuromorphic process to develop ML/AI products, and Weebit Nano (WBT) developing “resistive random-access memory technologies” for semiconductor industry.
RBS highlights tech stocks that facilitate AI, such as NextDC (ASX:NXT), up 42% in 2021 and worth $6.5 billion.
Training large language models requires more data storage and computer power.
Pundits should consider Macquarie Technology Group (ASX:MAQ), $1.4 billion, which announced a placement to expand its data centre presence for the “cloud and AI megatrends”.
Megaport (ASX:MP1) provides networks for efficient data transfer, worth $1.2 billion.
ETFs enable diversified, global investments in automation and robotics.
Examples on the ASX include Betashares Global Robotics and Artificial Intelligence ETF (RBTZ; $180M under management; top holding: Nvidia) and Global X’s Robotics and Automation ETF (ROBO; top holdings: Intuitive Surgical, Kardex Holding).
ETFs avoid single-exposure risks, such as Chegg’s plummeting shares due to students using ChatGPT for free info.