Examining Investment Opportunities – Artificial Intelligence
The artificial intelligence market is rapidly growing en route to becoming an indispensible part of the tech sector with wide ranging applications.
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For making smart investing and stock trading decisions, it is important to perform an analysis of the various industries being represented in the stock market. An analysis like that would reveal that artificial intelligence (AI) is hot property. AI is set to get really interesting in 2018 and the years to come. Grand View Research data, quoted by Motley Fool’s Leo Sun, expects the AI market to grow at a 57% CAGR (compound annual growth rate) from 2017 to 2025. The industry is set to become a $36 billion market. But to successfully invest in a dynamic tech field such as AI, you need to be updated with all the advancements and research being made in AI. The whole of tech industry is evolving and seeing new innovations frequently, and AI is no different. AI Innovations and Applications Let’s go through the innovations that are set to make AI successful and widely adopted by the market: Machine Learning Tech companies Alphabet ($GOOG, $GOOGL), Amazon ($AMZN) and Facebook ($FB) are all heavily investing in machine learning (ML). AI thrives on data gathered from users. All that information must be transformed to data that is www.tradezero.co
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actionable. That’s where machine learning comes in. This is crucial to help these tech giants design targeted ads for users. • Amazon already uses AI for predicting what shoppers would buy and making recommendations on the basis of past purchases they’ve made. • The tech giants also have their personal assistants such as Apple’s Siri, Amazon’s Alexa and Google Assistant. With AI, these personal assistants can collect more information for these companies from voice searches. • Chatbots are another potential application of machine learning. The major tech companies have launched ML divisions. Facebook started FAIR in 2013 and IBM ($IBM) brought out Watson Analytics in 2014 for business users. Amazon’s ML Solutions Lab was launched in 2017, though Amazon’s ML service was started back in 2015, and integrates machine learning experts from Amazon and AWS customers. Google’s Cloud Machine Learning platform was launched in 2016, while Microsoft‘s ML platform was started in 2015 for Azure. But these Silicon Valley companies are not the only ones making billion-dollar investments into AI. AI is also being
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used by Chinese companies Tencent ($TCEHY) and Baidu ($BIDU) for advancing their social and search ecosystems to other emerging segments such as driverless car tech. Autonomous Vehicles Now that’s another massive application of AI that could skyrocket in the years to come. Fully autonomous vehicles are already being experimented upon by car companies such as General Motors ($GM) and Tesla ($TSLA), cab services such as Uber and Ola, and the tech giants. AI Hardware – Data Centers One area of investment not often thought of in relation to AI is the hardware requirements, particularly in terms of powerful data centers. Intel ($INTC) is prominent here, since its Xeon CPUs are able to power most of the data centers globally. But Nvidia ($NVDA) is also gaining ground with its Tesla GPUs since they can process machine learning and other scientific tasks more efficiently than the Xeon processors. That’s why some of the major players in the AI industry including Google, Baidu, IBM and Facebook use Nvidia GPUs for their machine learning.
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Industrial Internet of Things This AI market is expanding with other applications too. One of these is the Industrial Internet of Things (IIoT). This involves automated tools, machinery and systems in industrial settings. Amazon has proved the practicality and efficiency of IIoT by using robots in its warehouses. And there are automation plans made by other companies too for their facilities. Cypress Semiconductor and Texas Instruments are two prominent chipmakers producing embedded and analog chips for these automated machines. All this proves that the AI market is spread across various industries, from software tech and driverless cars to data centers and industrial processes, giving it a wider playing field to draw in revenue for the companies involved. Though AI has usually been complementing major companies’ main businesses, its importance is rising rapidly, making it a key investing option. Companies that have already invested in this will gain in the years to come.
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