I am a lister. I make lists for everything from places to travel each year to what is needed for the next trip to the hardware store to where my life will be in 20 years. So, with all the talk that Artificial Intelligence (AI) is going to completely metamorphosize our lives as we all walk around like Ava from Ex Machina, perhaps a list is in order. Below is a slight attempt to decipher the various parts of AI and some companies involved in the new robotic world.
The Brains
So first you need a chip or an electronic circuit that can perform crazy mathematical calculations in milliseconds. The machines are learning. Also called GPUs or graphics processing units, these circuits are made by:
• NVIDIA Corporation (NVDA)
• Intel Corporation (INTC)
• Advanced Micro Devices(AMD)
• Taiwan Semiconductor (TSMC)
TSMC makes AI chips which are more suitable for tasks such as large-scale matrix calculations and neural network calculations. GPU chips, like the ones NVDA is making, are more suitable for tasks such as general numerical calculations and graphics rendering. In fact, NVDA is relying on TSMC to make their AI chips. Wow, that’s a lot of acronyms.
The Flesh and Bones
So now that we have the chip to handle wild algorithms, you will need a device that humans can use with their 10 phalanges (or eyeballs or voices). Of course, there is
• Apple (AAPL)
• Alphabet (GOOGL)
• HP (HPQ)
• Dell (DELL)
Along with the bodies of the AI world, one needs fancy software programs that help us understand everything.
• Microsoft (MSFT)
• Adobe (ADBE)
Office products that many in the working world use everysingle day will look nothing like the current version as AI takes over. Adobe’s creative suite and marketing software are already using AI to enhance its program. Don’t forget about the cloud serving programs by:
• Oracle (ORCL)
• Meta (META)
• Amazon (AMZN)
• Palantir Technologies’ (PLTR)
• Broadcom (AVGO)
• C3AI (AI)
The Muscles
In order for all of these chips and phones to process and keep the information in the brains, it needs someone behind it all to store the data. This is where an AI data center comes in. These are the facilities that have the computing resources needed to support (AI) workloads. These workloads can be demanding and use a lot of resources using space, lots of power, cooling and power connections. Companies like
• Micron Tech (MU) and
• Arista Networks (ANET) hardware
• Corning (GLW) fiberoptic cable
All in all this list is the just the tip of the iceberg for AI. Hundreds, if not thousands of companies are emerging in industries like healthcare, fintech, automotive, conversational bots, and analytics that may emerge as the next big thing. Hang on for the robot ride.
If one is interested in discussing this topic with an investment advisor and if it may fit into your portfolio, feel free to reach out to us.