ROBT - Global X: We're still in the early stages of AI adoption even after 2023 surge in interest

2023-08-09 09:02:03 ET

Global X reported Wednesday that the concept of artificial intelligence continues to gain traction among corporate executives, with mentions of AI in earnings calls during the first quarter jumping 77% and AI- and robotics-focused businesses outperforming the S&P 500 this year by 21%.

"While AI’s emergence has received significant media attention, we’re still in the early stages of adoption with more storylines likely ahead," Scott Helfstein, SVP, Head of Thematic Solutions at Global X noted.

Helfstein went on to state that investors that are looking to take advantage of AI may want to consider three angles, which are not discussed as much in popular coverage. Those three angles are cloud computing companies, chips and sensors businesses, and the commercial space versus the consumer led AI avenue.

“Existing cloud computing companies with sales teams and corporate clients may be well-positioned to monetize AI by acting as distribution networks, either acquiring companies or licensing the technology," he stated.

"Chips and sensors companies may offer a compelling hardware play in AI adoption as Internet of Things firms act as the connective tissue between the physical and digital worlds."

Helfstein added: "Commercial rather than consumer adoption is likely to lead the AI boom. As a result, this next investment wave may look different than the consumer tech wave of the past few years."

Investors who want to further analyze the AI market may look to exchange traded funds for a more diversified approach. Listed below are 10 popular artificial intelligence-based ETFs:

• GX Artificial Intelligence & Tech ETF ( NASDAQ: AIQ )
• GX Robotics & Artificial Intelligence ETF ( NASDAQ: BOTZ )
• ALPS Disruptive Technologies ETF ( DTEC )
• Goldman Sachs Innovate Equity ETF ( GINN )
• iShares Robotics and Artificial Intelligence Multisector ETF ( NYSEARCA: IRBO )
• Artificial Intelligence and Robotics ETF ( NASDAQ: ROBT )
• iShares U.S. Tech Breakthrough Multisector ETF ( TECB )
• iShares Exponential Technologies ETF ( XT )
• Robo Global Artificial Intelligence ETF ( THNQ )
• Roundhill Generative AI & Technology ETF ( CHAT ) ( Recently launched on May 18 ).

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