2025 AI Market Outlook Report

Generative AI is expected to grow at a CAGR of 57.9% to reach a valuation of US$36.36 billion by 2028. Don't miss out on this once-in-a-lifetime investment opportunity!

The Investing News Network (INN) spoke with analysts, market watchers and insiders to get their top predictions. Find out about the top trends and companies you need to watch, which industries are benefiting most from AI and whether the market is overvalued.

Table of Contents:

AI Market 2024 Year-End Review AI Market Forecast: Top Trends That Will Affect AI in 2025 AI Stocks: 9 Biggest AI Companies 5 Artificial Intelligence ETFs

A Sneak Peek At What The Insiders Are Saying

2025 AI Outlook Report

Table of Contents

AI Market 2024 Year-End Review

AI Market Forecast: Top Trends That Will Affect AI in 2025

AI Stocks: 9 Biggest AI Companies

5 Artificial Intelligence ETFs

AI Market 2024 Year-End Review

Competition in the artificial intelligence (AI) sector escalated dramatically in 2024, with major tech companies investing billions in a race to research and develop advanced AI technologies.

This surge in investment spurred rapid advancements, fierce competition and a wave of innovation that has the potential to reshape the technological landscape moving forward.

Here the Investing News Network delves into the trends that defined the AI sector in 2024.

Competition heats up among AI heavyweights

As mentioned, major tech companies jumped headfirst into AI in 2024.

For its part, Google (NASDAQ:GOOGL) began the year by rebranding its Bard chatbot as Gemini. The February decision streamlined its AI products under a single brand, showcasing a move toward a more sophisticated and unified AI experience. Its newest interaction, Gemini 2.0, was released on December 11.

Meanwhile, Microsoft (NASDAQ:MSFT) deepened its partnership with OpenAI, investing another US$750 million during an October funding round worth US$6.6 billion. This latest round brought the company behind ChatGPT to a total valuation of US$157 billion. According to SEC filings, Microsoft’s total investment in OpenAI has now reached US$13 billion.

NVIDIA (NASDAQ:NVDA), SoftBank (TSE:9434) and a handful of venture capital firms also participated in the round, but under the stipulation that OpenAI shift control of its dealings to a for-profit arm.

This sparked rumors that a potential initial public offering on the horizon.

Apple (NASDAQ:AAPL), notably missing from the list of investors who participated in OpenAI's October funding round, has opted for a more independent path, focusing on internal AI development.

At its annual developer conference from June 10 to 14, it unveiled Apple Intelligence for iOS18, saying it was coming to iPhone 16, iPadOS 18 and macOS Sequoia users. However, the company also shared plans to integrate ChatGPT in some products, like its voice-activated assistant Siri, as a supplemental layer on top of Apple Intelligence.

Apple performance, January 1 to December 17, 2024.

Chart via Google Finance.

The company's share price gained almost 8 percent by the end of the conference.

Apple Intelligence was released for qualifying models on October 28, and the newest software update, including ChatGPT for writing tools and Siri, was released on December 11.

OpenAI itself released GPT-4o on May 13, saying that it was optimized for multimodal tasks like analyzing audio and video. Later in the year, on September 12, the company previewed its first o1 model. OpenAI’s o1 series is designed to spend more time “thinking” before it responds and possesses advanced reasoning skills.

However, shortly after the model was released, The Information reported that o1 showed a slower rate of improvement compared to previous models, exposing potential limitations to continuous advancements in AI capabilities.

Amazon (NASDAQ:AMZN), while less focused on consumer-facing AI products, invested heavily in building out its cloud infrastructure and allocated another US$4 billion to AI research company and OpenAI rival Anthropic on November 22. This brings Amazon’s total investment in Anthropic to US$8 billion. As part of this expanded partnership with Amazon, Anthropic also made Amazon Web Services its primary cloud provider.

Meta (NASDAQ:META) focused on integrating generative AI across its platforms in 2024, leading to enhancements like better ad targeting and content recommendations. The company also released the MTIA v2 chip, an improved version of its AI inference chip that is designed to handle the massive amount of data generated by Meta’s customer base. The newest version of Meta’s open-sourced large language model, Llama 3, was released on April 18.

Elon Musk’s AI company, xAI, upgraded its large language model Grok-2. A beta version of Grok-2 was released on August 13 and was made available to all X users on December 12. Grok-2 was trained on xAI’s supercomputer Colossus, which is powered by 100,000 NVIDIA graphics processing units (GPUs) and came online on September 11. The company held two US$6 billion funding rounds in 2024, and as of November 28 was valued at a staggering US$50 billion.

Hardware is king

Vertical integration gained momentum in 2024 as companies invested in more parts of the chip-making process.

NVIDIA maintained its dominance, attracting attention with outstanding earnings seasons and intermittently earning the title of the world’s most valuable company. The company set the stage for exponential further growth when it introduced its Blackwell architecture at the GPU Technology Conference in March.

However, the company has faced unexpected design hurdles that have delayed the debut of Blackwell GPUs. While no official release date was set, it was widely speculated that they would be available towards the end of 2024. A progress update will reportedly be announced at the Consumer Electronics Show in January.

NVIDIA performance, January 1 to December 17, 2024.

Chart via Google Finance.

Advanced Micro Devices (AMD) (NASDAQ:AMD), NVIDIA's most direct competitor, reported a 9 percent increase in revenue in Q2, driven by its MI300X AI chip. MI300X combines GPU and central processing unit capabilities into a single chip, giving a leg up over NVIDIA, which designs both chips separately to work together.

Also in 2024, AMD collaborated with a handful of software and hardware companies to develop a new AI accelerator standard that is capable of challenging NVIDIA's NVLink.

2024 presented chip designers with a challenge as customers like Apple and Google increasingly moved chip design in-house. Made by Taiwan Semiconductor Manufacturing Corporation (TSMC) (NASDAQ:TSM), Apple’s A- and M-series chips feature a neural engine to enable on-device AI and powered a slew of new products released this year.

Google released its Tensor G4 chip, designed in collaboration with Broadcom (NASDAQ:AVGO) and manufactured by TSMC. The G4 chip powers Google’s refreshed lineup of Pixel devices, released on August 13.

The shifting trends resulted in TSMC emerging as an undisputed victor. The company reported outstanding revenue and profits in 2024, fueled by a surge in demand for powerful chips and its advanced manufacturing technologies.

Its share price hit an intraday high of US$211.93 on October 17 following its Q3 results, and it recorded an all-time high closing share price of US$205.19 that same day.

According to a December 9 report by Taipei-based market intelligence provider TrendForce, TSMC increased its share of the wafer foundry market to 65 percent in the third quarter.

TSMC performance, January 1 to December 17, 2024.

Chart via Google Finance.

Another chip company, Broadcom, successfully navigated 2024 by diversifying into software through its acquisition of VMware. Broadcom, which plays a crucial role in the semiconductor industry by designing and manufacturing chips that enable the realization of software objectives, reported record revenue for its 2024 fiscal year,

The rise was driven by strong demand for its semiconductor products and the successful integration of VMware. The company’s AI-related revenue more than tripled, and its quarterly dividend rose by 11 percent.

In contrast, Qualcomm (NASDAQ:QCOM), which remained largely focused on the hardware market this past year, appeared more vulnerable to the industry’s shifting tides.

Even industry giants like Intel (NASDAQ:INTC) faced their share of turbulence. While its foundry business struggled, Intel’s computer parts division did well, with its Core Ultra processors powering a lineup of AI-enabled laptops from Microsoft and Dell (NYSE:DELL). Dell also pushed into hybrid solutions and edge computing with its APEX portfolio.

Broadcom, Qualcomm and Intel performance, January 1 to December 17, 2024.

Chart via Google Finance.

AI hype pays dividends for tech giants

Despite a notable pullback in Q2 and Q3 due in part to investor concerns about the long-term returns of massive AI investments, 2024 was a year of strong financial performances for tech giants, as evidenced by their dividend payouts.

Meta announced cash dividend payments in May and September, while in Microsoft said in September that it would reward shareholders with a 10 percent increase to its quarterly dividend payment.

Alphabet also issued quarterly dividends for the first time in 2024, distributing payments three times.

It's worth noting that the initial surge in spending and subsequent pullback could have been influenced by a variety of factors, including hype cycles, macroeconomic conditions and evolving understandings of AI's capabilities and limitations.

Investor takeaway

Ultimately, despite occasional fluctuations and concerns, investor confidence in the tech sector remained strong throughout 2024, with funding continuing to flow. As of mid-December, shares of Microsoft were up over 21 percent year-to-date, while Alphabet was up by over 44 percent and NVIDIA was up an astonishing 166 percent.

In 2024, the AI sector experienced rapid advancements and fierce competition, driven by substantial investments from tech giants. As the technology continues to mature, the stage is set for continued innovation and disruption, promising an exciting future for AI and its applications.

Don’t forget to follow us @INN_Technology for real-time news updates!

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

AI Market Forecast: Top Trends That Will Affect AI in 2025

The United Nations has designated 2025 as the year of quantum science and technology, highlighting the profound impact that technological advancements are poised to have on the world.

The increasing prevalence of artificial intelligence (AI) across a wide array of industries has spurred significant investment in the sector over the last two years as the world's largest tech firms jump in. As AI continues to evolve, many investors are wondering if 2025 will be a pivotal year when these investments begin to show significant returns.

From its impact on stock market valuations to its transformative potential across industries, here the Investing News Network delves into the key trends and developments that are shaping the future of AI.

How will AI affect the stock market in 2025?

2024 was marked by concerns over the dominance and high valuations of the Magnificent 7, and heading into 2025, investors are keenly watching how these companies will influence the broader stock market.

Citigroup (NYSE:C) analysts have a generally positive outlook for 2025, noting that the Magnificent 7 aren't trading at unprecedented valuations; rather, the other S&P 500 (INDEXSP:.INX) stocks are at a higher risk.

Essentially, the US stock market is priced for perfection, leaving it susceptible to a correction triggered by rising interest rates, disappointing earnings or a broader economic slowdown.

For its part, BNY asserts that the Magnificent 7 may actually be undervalued relative to their future growth potential. While acknowledging the record-high profit margins in the tech sector, the firm contends that valuations relative to the rest of the market are cheaper than during similar periods of technological advancement in history.

Further, the expectation of continued profit margin expansion and earnings growth fueled by ongoing AI innovation supports the notion of further upside potential for tech stocks.

AI juggernaut NVIDIA's (NASDAQ:NVDA) sustained profitability underscores its dominant market position and ability to efficiently capitalize on the surging demand for its products.

Goldman Sachs (NYSE:GS) analysts believe the Magnificent 7 will continue to outperform the rest of the S&P 500 in 2025, but only by 7 percentage points, the lowest amount in seven years. The firm sees various elements, including macro factors like US growth and trade policy, favoring the "S&P 493."

David Rosenberg, founder of independent research firm Rosenberg Research and Associates, expressed to the Globe and Mail on December 5 that he has shifted his perspective on the US stock market.

Rather than focusing on reasons for its overvaluation and bearish indicators, he aims to understand the underlying factors driving the market's behavior over the past two years.

“The market is telling us that we are in a 'Model Shift' when it comes to future growth and profits,” he explained. “Traditional valuation methods, like price-to-earnings ratios, are backward-looking and may not be suitable in this environment. Investors are focused on long-term potential, particularly in areas like AI, and are willing to pay a premium for it. The current surge in AI might resemble the dot-com bubble, but it could take years to confirm."

He added that interest rate cuts from the US Federal Reserve would support higher valuations.

BNY also points to historical data showing that an environment of easing monetary policy tends to coincide with economic growth, with an average of 16.5 percent growth in the year following initial rate cuts since 1984. It suggests that S&P 500 earnings growth will be between 10 to 15 percent in 2025, with the index reaching around 6,600 in 2025. Although this represents slower growth compared to 2024, it still indicates continued expansion.

While Rosenberg is mindful of near-term risks, such as weakness in the US labor market and the likelihood of profit-taking and early rebalancing, he emphasized the importance of keeping an open mind in 2025.

In his view, it's key for investors to learn from the mistakes of the past year, such as overreacting to short-term volatility and underestimating the potential of transformative technologies.

Profitability in focus as AI improvement rate slows

While Big Tech pours billions into AI development, the question of profitability in 2025 hangs in the balance.

Google (NASDAQ:GOOGL) is prioritizing long-term AI dominance over short-term gains. The company's aggressive AI spending is expected to continue in 2025, potentially impacting immediate revenue growth.

Similarly, Meta (NASDAQ:META) is heavily investing in AI, with a projected US$1 billion increase in capital expenditures for 2024. CFO Susan Li acknowledged in the company's earnings call for Q3 of this year that both depreciation and operating expenses will grow next year as Meta expands its AI infrastructure and product line.

Overall, the AI landscape in 2025 hinges significantly on whether Big Tech can deliver on its ambitious promises, and recent commentary suggests that the rate of AI improvement may be slowing down. Several AI investors, founders and CEOs told TechCrunch in November that the focus may shift to efficiency and specialized AI solutions.

Test-time compute, which gives AI models more time to “think” before answering a question, emerged as part of the new era of scaling laws toward the end of 2024. Scaling laws are described by TechCrunch as the methods and expectations that labs have used to increase the capabilities of their models.

This development has fueled a growing belief — held by experts like Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman — that artificial general intelligence (AGI) may be closer than previously anticipated.

Beyond the evolution of scaling laws, Konstantine Buhler of Sequoia Capital told Bloomberg News that 2025 is poised to be a breakout year for AI agents. These sophisticated programs, capable of independently performing tasks and making decisions, have the potential to revolutionize how we interact with technology and automate complex processes.

While the transformative potential of AI spans countless industries, the scale and timing of substantial returns remain uncertain as we navigate this uncharted technological territory.

AI hardware and infrastructure developments to watch

Regardless of the exact timeline or nature of AGI's arrival, one thing is certain: the race to develop and deploy advanced AI is driving an insatiable demand for powerful hardware, and key companies are stepping up.

“While the mega-cap cloud companies will capture a lot of future revenue opportunities for AI, they are still in spending mode right now. They’re spending heavily on semiconductors, data center infrastructure, and energy,” Nicholas Mersch, associate portfolio manager at Purpose Investments, wrote in a July market commentary note.

The buildout is ongoing, and Big Tech’s latest round of quarterly reports indicates no immediate slowdown in infrastructure spending. This dynamic positions key hardware players like Taiwan Semiconductor Manufacturing Company (NYSE:TSM), NVIDIA and Broadcom (NASDAQ:AVGO) for potentially stronger near-term returns.

For its part, Goldman Sachs predicts that investor focus will now shift from AI infrastructure to a wider “Phase 3” of AI application deployment and monetization. Companies of interest include software and services firms.

Lux Research highlights two primary models: the monopoly model and the "walled garden" approach.

Companies like NVIDIA, Meta and Microsoft are pursuing a monopoly strategy, aiming to capture a large market share and maximize value extraction from a broad user base. Challenges include competition and pressure to keep prices low.

Companies can also adopt a "walled garden" approach, similar to Apple's (NASDAQ:AAPL) ecosystem, which prioritizes a smaller, more engaged user base. By providing premium features and exclusive content, companies can increase value generated per user. This model may face challenges in achieving the same level of scale as the monopoly model.

Investor takeaway

The outlook for the tech sector and the broader stock market in 2025 is cautiously optimistic.

AI is expected to continue playing a pivotal role, with the race for AI dominance fueling investments in infrastructure and innovation, and positioning key hardware and software players for potential gains.

However, the profitability of AI investments remains to be seen. Companies' ability to adapt and capitalize on emerging opportunities will be crucial for sustained success in the dynamic landscape of 2025.

Don’t forget to follow us @INN_Technology for real-time news updates!

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Syntheia and Zero Candida Technologies are clients of the Investing News Network. This article is not paid-for content.

AI Stocks: 9 Biggest Companies in 2024

Artificial intelligence (AI) is still emerging, but there are plenty of billion-dollar companies in this space.

As the market has grown over the past few years, AI technology has made strong inroads into several key industries, including logistics, manufacturing, finance, healthcare, customer service and cybersecurity.

While AI-driven advancements in robotics have received press in recent years, the largest buzz has centered around OpenAI’s ChatGPT. This intelligent chatbot shows how quickly generative AI is advancing — notably, it's attracted the attention of heavyweight tech firms such as Microsoft (NASDAQ:MSFT), which has reportedly invested billions of dollars in the privately held OpenAI. Alphabet (NASDAQ:GOOGL) has also released its own AI chat tool, Google Gemini.

On a global scale, Fortune Business Insights predicts that the AI industry will experience a compound annual growth rate of 20.4 percent between 2024 and 2032 to reach a market value of more than US$2.74 trillion.

Here the Investing News Network profiles some of the biggest AI stocks by market cap on US, Canadian and Australian stock exchanges. Data for this AI stocks list was gathered on September 27, 2024, using TradingView’s stock screener.

American AI stocks

According to Tracxn Technologies, the number of US AI companies has more than doubled since 2017, with over 82,541 companies working in the sector today.

One of the major factors fueling growth in the American AI market, states Statista, is “the growing investments and partnerships among technology companies, research institutions, and governments."

Below are three of the top US AI stocks organized by market cap.

1. Microsoft (NASDAQ:MSFT)

Company Profile

Market cap: US$3.19 trillion
Share price: US$428.91

Microsoft has committed billions to OpenAI, but the tech behemoth has also built its own AI solutions based on the chatbot creator’s technology: Bing AI and Copilot. OpenAI officially licensed its technologies to Microsoft in 2020.

An update to Windows 11 in 2023 integrated the Bing chatbot into the operating system's search bar, allowing users to interact with the chatbot directly with Microsoft's Edge browser, Chrome and Safari.

Microsoft’s moves into generative AI have translated into higher revenues for its Azure cloud computing business and a higher market capitalization — the tech giant pushed past the US$3 trillion mark in January 2024.

In late May, Microsoft unveiled its Copilot+ Windows PCs, its first range of AI-equipped PCs. According to the company, they are the “fastest, most intelligent Windows PCs ever built.”

After receiving criticism over security flaws, Microsoft announced in late September that it had made changes to the Copilot+ exclusive Recall software, which uses AI to create screenshots of everything users do on their computers.

2. NVIDIA (NASDAQ:NVDA)

Company Profile

Market cap: US$2.95 trillion
Share price: US$120.05

The global leader in graphics processing unit (GPU) technology, NVIDIA is designing specialized chips used to train AI and machine-learning models for laptops, workstations, mobile devices, notebooks and PCs.

The company is partnering with a number of big-name tech firms to bring various key AI products to market.

Through its partnership with Dell Technologies (NYSE:DELL), NVIDIA is developing AI applications for enterprises, such as language-based services, speech recognition and cybersecurity.

The chipmaker has also been instrumental in the buildout of Meta Platforms’ (NASDAQ:META) AI supercomputer. Called the Research SuperCluster, it reportedly uses a total of 16,000 NVIDIA GPUs.

In the first quarter, Taiwan Semiconductor Manufacturing Company (NYSE:TSM) and NVIDIA released the world's first multi-die chip specifically designed for AI applications: the Blackwell GPU. Blackwell’s architecture allows for the increased processing power needed to train larger and more complex AI models.

In early June, NVIDIA saw its market cap zoom past the US$3 trillion mark to surpass that of Apple (NASDAQ:AAPL). On June 18, its valuation jumped to as high as US$3.34 trillion to briefly pass Microsoft before pulling back. In Q4, the GPU giant is expected to produce 450,000 Blackwell AI chips worth a potential US$10 billion in revenue.

3. Alphabet (NASDAQ:GOOGL)

Company Profile

Market cap: US$2.03 trillion
Share price: US$164.29

Alphabet holds court with both Microsoft and NVIDIA as part of the tech sector’s Magnificent 7, and its foray into AI has similarly brought the tech giant much success. Alphabet's market cap surpassed the US$2 trillion mark in April.

The company has created the AI chatbot Gemini, formerly known as Bard, which is integrated into products such as its Google Suite, the Chromecast browser and the Google Pixel phone line.

In early April, Google introduced a custom AI chip designed for its cloud services customers. Set to be delivered later this year, the technology uses British semiconductor company Arm Holding's (NASDAQ:ARM) AI architecture. In the same week, Google revealed its new A3 Mega AI processor based on NVIDIA’s H100 Technology.

More recently, Google partnered with automaker Volkswagen (OTC Pink:VLKAF,ETR:VOW) to launch a smartphone app-integrated AI assistant for Volkswagen drivers.

Canadian AI stocks

Recognized as a world-leading AI research hub, Canada ranks eighth out of 83 countries in the Global AI Index. Since 2017, the Canadian government has invested hundreds of millions of dollars into accelerating the research and commercialization of AI technology in the country through the Pan-Canadian AI Strategy.

Research by IBM (NYSE:IBM) shows Canadian businesses are increasingly adopting AI, with 37 percent of IT professionals in large enterprises reporting that they have deployed the technology in their operations.

Below are three of the top Canadian AI stocks by market cap.

1. CGI (TSX:GIB.A)

Company Profile

Market cap: C$34.93 billion
Share price: C$154.55

Montreal-based CGI is among the world’s largest IT systems integration companies, and offers a wide range of services, from cloud migration and digital transformation to data analysis, fraud detection and even supply chain optimization. Its more than 700 clients span the retail, wholesale, consumer packaged goods and consumer services sectors worldwide.

Through a partnership with Google, CGI is leveraging the Google Cloud Platform to strengthen the capabilities of its CGI PulseAI solution, which can be integrated with existing applications and workflows.

CGI is aggressively working to expand its generative AI capabilities and client offerings, and is reportedly planning to invest US$1 billion into its AI offerings. In early March, the company launched Elements360 ARC-IBA, an AI powered platform for brokers and insurers to settle accounts in the UK broking industry.

In September, CGI signed the EU's Artificial Intelligence Act pledge to work for trustworthy and safe AI development.

2. OpenText (TSX:OTEX)

Company Profile

Market cap: C$12.15 billion
Share price: C$44.78

Ontario-based OpenText is one of Canada’s largest software companies. The tech firm develops and sells enterprise information management software. Its portfolio includes hundreds of products in the areas of enterprise content management, digital process automation and security, plus AI and analytics tools.

OpenText serves small businesses, large enterprises and governments alike. Its AI & Analytics platform has an open architecture that enables integration with other AI services, including Google Cloud and Azure. It can leverage all types of data, including structured or unstructured data, big data and the internet of things to quickly create interactive visuals.

Early in the year, OpenText launched Cloud Editions 24.1, which includes enhancements to its OpenText Aviator portfolio.

"Leveraging AI for impactful results depends on reliable data — without it, even the most skilled data scientists will struggle,” OpenText CEO and Chief Technology Officer Mark J. Barrenechea stated.

“By expanding the Aviator portfolio in conjunction with our world class information management platform, Cloud Editions 24.1 empowers customers with the tools and insights needed to get ahead."

3. Descartes Systems Group (TSX:DSG)

Company Profile

Market cap: C$12.08 billion
Share price: C$138.10

Descartes Systems Group provides on-demand software-as-a-service (SaaS) solutions.

The multinational technology company specializes in logistics software, supply chain management software and cloud-based services for logistics businesses. AI and machine-learning enhancements to Descartes’ routing, mobile and telematics suite are helping the company’s customers optimize fleet performance.

“AI and ML are perfect extensions to our advanced route optimization and execution capabilities,” Ken Wood, executive vice president at Descartes, said. “From dynamic delivery appointment scheduling through planning and real-time route execution, we’ve used AI and ML to improve our ability to deliver the next level of fleet performance for customers.”

Australian AI stocks

AI investment by Australian companies is projected to increase by 67 percent in 2024, according to BSI's International AI Maturity Model. That would make the country the second best market in the world in terms of boosting AI capabilities.

The biggest spenders when it comes to AI in Australia are the banking industry, the federal government, professional services and retail. Below are three of the top Australian AI stocks by market cap.

1. Xero (ASX:XRO)

Company Profile

Market cap: AU$22.52 billion
Share price: AU$148.72

Xero provides cloud-based accounting software for small- and medium-sized businesses. The company’s product portfolio also includes the Xero Accounting app, Xero HQ, Xero Ledger, Xero Workpapers and Xero tax tools.

Xero has made a number of AI enhancements to its platform in recent years, including bank reconciliation predictions that save time and reduce errors, and Analytics Plus, a suite of AI-powered planning and forecasting tools.

In March, the company launched its generative AI assistant, which is called Just Ask Xero, or JAX. Some of its features include: the automation or streamlining of repetitive and time-consuming tasks; the ability to anticipate tasks based on previous user actions; and the ability to make cashflow projections on request.

2. TechnologyOne (ASX:TNE)

Company Profile

Market cap: AU$7.84 billion
Share price: AU$23.80

TechnologyOne is another large enterprise technology software firm in Australia. In fact, it is the country’s largest enterprise resource planning SaaS company. TechnologyOne has a client base of over 1,200, including customers in the government, education, health and financial services sectors across Australia, New Zealand and the UK. The company’s research and development center is targeting cloud-based technology, AI and machine learning.

Municipalities such as Shoalhaven in the UK are using TechnologyOne AI-based SaaS solutions to manage city services, including waste management and road maintenance.

TechnologyOne's H1 financial results for the period ended on March 31 highlight the company's 15th year of record first-half revenue, profit and SaaS fees.

3. Weebit Nano (ASX:WBT)

Company Profile

Market cap: AU$351.38 million
Share price: AU$1.86

Weebit Nano develops silicon oxide-based resistive random-access memory (ReRAM) technologies. The company seeks to address the need for significantly higher-performance and lower-power computer memory technology.

The Israeli semiconductor IP company's products can be used to enable edge AI applications and AI systems such as neuromorphic computing. An advancement in AI and machine learning, neuromorphic computing is based on architectures designed to function in the same way as the human brain’s operation.

Weebit says its ReRAM cell “functions similarly to a synapse in the brain, making it a promising solution for neuromorphic computing.” The company is collaborating with research partners in academia and industry to further develop the use of ReRAM for neuromorphic computing.

Don't forget to follow us @INN_Technology for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

5 Biggest Artificial Intelligence ETFs in 2024

While it may seem like AI has exploded onto the scene in recent years, the phrase "artificial intelligence" has been around since 1955, when it was used to describe a new computer science subdiscipline.

Today we use AI to describe simulated intelligence in machines. In other words, machines with AI are capable of simulating thinking like people and mimicking their actions. The ideal characteristic of AI is the ability to rationalize.

As applications for AI rapidly expand, it's clear that this market isn't going away anytime soon.

Research conducted by Markets and Markets suggests the AI industry will be worth over US$1.34 trillion by 2030, increasing at a compound annual growth rate of 35.7 percent between 2024 and 2030. With that much money going into the sector, there is certainly no shortage of ways for investors to add AI investments to their portfolios.

For investors who would prefer to gain exposure to AI through the overall market rather than specific AI stocks, exchange-traded funds (ETFs) are a popular avenue. Here the Investing News Network looks at five AI ETFs to invest in, based on the largest listed on ETFdb.com. All details were current as of June 10, 2024.

According to ETFdb.com, these AI ETFs are required to meet one of three criteria:

• Focus on stocks developing new products, services or technological improvements in AI-related research.
• Have 25 percent portfolio exposure to companies that spend money on AI research and development.
• Choose individual securities to be included in the fund based on their use of AI methods.

1. Global X Robotics & Artificial Intelligence Thematic ETF (NASDAQ:BOTZ)

Company Profile

AUM: US$2.77 billion

First on the list is the Global X Robotics & Artificial Intelligence Thematic ETF, which offers exposure to firms involved in the global automation and robotics industries. According to ETF.com, the fund was launched in September 2016 and has holdings in various markets, including technology, healthcare and energy. Eligible companies must earn a significant portion of their revenue from or have a stated business purpose in the fields of robotics or AI.

The Global X Robotics & Artificial Intelligence Thematic ETF currently tracks 44 holdings, including Intuitive Surgical (NASDAQ:ISRG) and NVIDIA (NASDAQ:NVDA). The fund has an expense ratio of 0.68 percent.

2. Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ)

Company Profile

AUM: US$1.91 billion

Established in May 2018, the Global X Artificial Intelligence & Technology ETF tracks the performance of the Indxx Artificial Intelligence & Big Data Index. "AIQ is passively managed to invest in developed market companies that are involved in the use of artificial intelligence to analyze big data, whether for their own operations, as a service to other companies, or through the production of related hardware," according to ETF.com.

The Global X Artificial Intelligence & Technology ETF's 85 holdings include Qualcomm (NASDAQ:QCOM) and Google (NASDAQ:GOOGL). The fund also has an expense ratio of 0.68 percent.

3. iShares Robotics and Artificial Intelligence ETF (ARCA:IRBO)

Company Profile

AUM: US$672 million

The iShares Robotics and Artificial Intelligence ETF launched in June 2018. It tracks an index composed of 110 developed and emerging market companies that could benefit from long-term growth in robotics technology and AI.

The fund has the lowest expense ratio of the five AI funds on this list at 0.47 percent.

Some of the ETF's top holdings include MicroStrategy (NASDAQ:MSTR) and ARM Holdings (NASDAQ:ARM).

4. First Trust NASDAQ Artificial Intelligence and Robotics ETF (NASDAQ:ROBT)

Company Profile

AUM: US$532 million

The First Trust NASDAQ Artificial Intelligence and Robotics ETF was launched in February 2018. It follows a modified equal-weighted index of all-cap global companies involved in AI or robotics.

The ETF currently tracks 109 companies, and two of its top holdings are AeroEnvironment (NASDAQ:AVAV) and QinetiQ Group (LSE:QQ). The fund has an expense ratio of 0.65 percent.

5. ROBO Global Artificial Intelligence ETF (ARCA:THNQ)

Company Profile

AUM: US$136 million

The last AI ETF on this list is ROBO Global Artificial Intelligence ETF. It is relatively new compared to the others, having launched in May 2020. The fund has an expense ratio of 0.68 percent.

It tracks the performance of companies that derive a significant portion of their revenue from AI. The ROBO Global Artificial Intelligence ETF's 60 holdings include Microsoft (NASDAQ:QCOM) and Darktrace (LSE:DARK).

This is an updated version of an article originally published by the Investing News Network in 2017.

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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.