![]() ![]() Instead, it relies on Taiwan Semiconductor Manufacturing Company (TSMC), the most advanced chipmaker in the world, to manufacture its GPUs. Arguably the most well-known AI-related stock, the U.S.'s Nvidia, does not manufacture its own graphic processing chips (GPUs) that are all the rage for AI applications. We often think of U.S.-based manufacturing companies when it comes to new technologies like AI, but exposure to AI spans borders and industries. Besides individual stocks, there are also several ETFs and mutual funds focused on AI-related investments to consider. ![]() But what about right now? For those considering investing in AI stocks, consider 's AI theme that features 25 AI-related stocks from around the world. It's likely we will all be AI investors eventually, given what may become widespread adoption by businesses around the world. AI could be adopted more quickly or slowly, watching the pace of investment may be the key. ![]() Why the lag of a few years? Economy-wide productivity wasn't enhanced until enough businesses had integrated the new technology into their operations and were able to capitalize on new capabilities. Both changes in productivity were signaled a few years in advance by the change in investment. Productivity growth stabilized in 2000, and then declined until 2004. A deceleration in investment growth began in 1998, reaching a peak level in 2000. An upturn in technology investment by businesses took place around 1993, preceding the start of a rise in productivity just a few years later in 1996. We would expect a similar pattern as observed during the most recent, tech-driven boost to productivity in the 1990s internet boom. We can gauge the potential impact of AI by monitoring the scale of investment into AI-related capital focused on information processing equipment and software. In general, history shows that the greater and more rapid the investment in new technologies by businesses, the greater the potential impact on productivity. Still, integration seems to be in its infancy across wide swaths of industry, with a long way to go for AI adoption in manufacturing, product design, drug development, transportation, construction, customer service, heath care, agriculture, and mining. Surveys conducted by Gartner, McKinsey, Accenture and others have found higher adoption rates in specific industries, such as the retail industry adopting AI-suggested product recommendations for shoppers. Census Bureau of 300,000 businesses, published in November 2022 (just ahead of the ChatGPT excitement), revealed that only 4% used AI in their business. Of course, the third quarter is far from over yet, which suggests further upside momentum to the discussion of AI by businesses.Īt this time, few firms have currently incorporated AI into their operations. Our tracking has revealed that mentions of AI on earnings calls that have occurred during the second and third quarters of this year have soared to over 3,000. Reviewing quarterly earnings calls, we observe that business leaders are increasingly discussing AI with shareholders, signaling the potential for investment. It begins with business capital investments in AI. Recent examples of this include the internet and the Global Positioning System (GPS). History suggests it takes a while for new technologies to coalesce and businesses to adopt and effectively implement them. How significant might this be and how long could it take? AI could help manage wage costs by filling the gaps and boosting output per worker. It's been a key focus of central bankers this year. The tightest labor market in generations-with unemployment rates in the U.S., Canada, Germany, and the United Kingdom recently falling to lows not seen in 50 years-threatens to raise labor costs and slow growth. Environmental, Social and Governance (ESG) Investing.Bond Funds, Bond ETFs, and Preferred Securities.ADRs, Foreign Ordinaries & Canadian Stocks.Environmental, Social and Governance (ESG) ETFs. ![]() Environmental, Social and Governance (ESG) Mutual Funds.Benefits and Considerations of Mutual Funds. ![]()
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