David Brenchley, The Times, June 1 2023:
On Monday the chipmaker Nvidia became a trillion-dollar company…
Nvidia’s share price is up 164 per cent this year alone. The company said last week that demand for its graphics processors, needed to train AI systems, would bring in $11 billion of revenue in the three months to the end of July…
What is artificial intelligence?
In its simplest form, AI is the ability of a computer to think and learn. There are many different forms of AI, but most commonly it is the simulation of human intelligence in machines. Complex computers can be taught to ingest and analyse huge volumes of data and to recognise patterns in it…
What are the risks of investing in AI?
The best way of investing is through an ETF that systematically picks relevant stocks and tracks their share prices.
Any thematic investment comes with higher risks…
How can I invest in AI?
As with any investment, it is important to diversify. You can pick stocks yourself, but it is difficult to predict who the winners and losers will be…
Broader technology funds can help you to capture the AI theme while giving you exposure to other tech trends as well. Matthew Read from the research company QuotedData suggested Polar Capital Technology investment trust, where manager Ben Rogoff has tilted the trust’s portfolio to companies expected to benefit from AI…
One of the biggest holdings in the Chrysalis investment trust is Deep Instinct, which uses deep learning to predict and prevent cybersecurity threats, which are usually detected only after they have happened. It also holds Featurespace, which uses AI technology to combat fraud and financial crime. A less established holding is Graphcore…
James Carthew from QuotedData said: “If Graphcore can break into that market, it could be a spectacular success, but Nvidia’s dominance may prove insurmountable.”
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