How to spot Investment Opportunities in AI | Mesh.trade

How to Invest in AI: Exploring Opportunities in Artificial Intelligence

Artificial Intelligence is reshaping our world. But what’s the best way to invest in it?

Artificial Intelligence (AI) is in the autocorrect that fixes your texts as you type. It’s in the playlist recommendations that shape your streaming entertainment. And, more and more, it’s in the back-end processes that power your business. AI is everywhere, and it’s reshaping everything.

So how should you approach investing in it?

AI in Investment Portfolios: Expert Insights

“AI has applications across various fields, from healthcare to finance, autonomous vehicles, robotics, and more,” says Connie Bloem, MD of digital capital markets platform Mesh.trade. “And as the tech matures, it’s safe to assume that AI-powered industries have the potential to grow exponentially, too.”

Craig Antonie, Chief Investment Officer at Λnßro Capital Investments, agrees. “Many companies that are either involved in or touched by AI are already seeing significant increases in revenue based on the investment cycle,” he says. “In most cases this is confined to the infrastructure providers of the technology, but as the use cases expand and funds are expensed, the potential overflow into other industries begins to take shape.”

Investment Portfolios Available on Mesh.trade

Λnßro Capital Investments has three investment portfolios available on Mesh.trade. These range from the SALTA Award-winning Λnβro Unicorn Global Equity AMC, which offers exposure to high-growth “unicorn” companies; to the Λnβro World’s Biggest BRNDZ AMC, which offers exposure to companies with high brand value and a proven track record; to Λnβro Dynamic Compound AMC, which invests in global companies that pay out regular dividends, and reinvests those dividends to generate compounding growth over time.

Approaches to Investing in AI by Risk Tolerance

“Each of those portfolios is different, and as a result, we approach investing in AI in several ways,” says Antonie. “The portfolio you choose to invest in is determined by your risk tolerance, investment goals, and expertise. To this end, we have divided our investment universe into several categories for which we then screen and research for potential addition to our portfolios. Each category has a Cautious, Balanced and Growth option allowing each underlying portfolio the ability to take on the theme we would like exposure to.“

Categories of AI Companies for Investment Opportunities

Λnßro has identified three core categories of companies that play in the AI space.

AI Trailblazers: Companies Leading in Innovation

The first category is the “AI Trailblazers”, which are at the razor edge of AI technology and innovation. “They spend a considerable amount of time, money, and research on the theme,” says Antonie, “and by doing this they collect various forms of intellectual property, patents and technologies. They are driving the phenomenon into the market by selling products and or services.”

Tesla is a good example of a Growth pick among the AI Trailblazers, while Nvidia is regarded as a Balanced pick and Apple as Cautious pick.

AI Utilisers: Enhancing Business Performance through AI

“The second category is what we call ‘AI Utilisers’,” says Antonie. “Instead of developing or selling these technologies as their core business these companies use the technology to improve the products or services that they provide or offer to customers.”

Streamlined processes, quicker turnaround times, enhanced performance of offerings are some of the things that companies utilising AI are after. Here one would look at Uber as a Growth pick, IBM as a Balanced pick and JPMorgan as a Cautious pick.

AI Authorities: Market Leaders with Core AI Technologies

Λnßro’s third category includes the “AI Authorities”, which focus on specific technologies. They have a core business centred around these technologies and have made significant investments in R&D and research to ensure that they have a unique and market-leading approach to their offerings.

Zscaler would be a Growth pick in this category, with Arista Networks and Salesforce filed under ‘Balanced’ and ‘Cautious’ respectively.

Evaluating Growth, Balanced, and Cautious Picks in AI

“As you can imagine, selecting stocks in each category is a constantly evolving process, and many stock ideas are screened for potential inclusion,” says Antonie. “Looking at the list, however, gives you a sense of how things like company size and industry correlate to things like whether we would consider them a Growth, Balanced or Cautious investment.”

Conclusion: A Smart Entry Point for AI Investment

“It is certainly an exciting time to be investing in AI,” concludes Bloem. “Investors are constantly on the lookout for new ways to get exposure to the opportunity. Λnßro’s approach is a sensible one, giving investors of all stripes an appropriate entry point into the market.”

Find out more about the Λnβro Dynamic Compound AMC, Λnβro World’s Biggest BRNDZ AMC and the award-winning Λnβro Unicorn Global Equity AMC – now available to investors on Mesh.trade.