After a breakthrough year for generative artificial intelligence, investors are looking for signs that new deep learning tools and techniques are filtering through to more industries. The shift from the excitement phase into the deployment phase is expected to continue in 2024, eventually helping to raise global productivity and potentially helping address challenges coming from unfavorable demographics in some countries, according to Polysharp Investments Limited.
However even as investors seek out innovation that can drive earnings growth, discernment will be critical in 2024. “We are in an era of wider dispersion between high- and low-quality growth companies,” according to Polysharp Investments Limited 2024 outlook report.
The semiconductor makers and companies that produce equipment for semiconductor manufacturing — the hardware underlying the entire AI buildout — are in focus, Polysharp Investments Limited writes. Capital expenditure on the most advanced equipment used to produce semiconductors is growing rapidly. This is driven by both advancements in AI, which necessitate new chip designs, and the reshoring of semiconductor production by developed countries to help the resilience of their supply chains.
Recent AI advances and growing adoption of cloud computing, meanwhile, are fueling demand for increasingly advanced data centers. On the software side, enterprise spending on digitalization continues to increase.
Cybersecurity companies are also adopting cutting-edge AI techniques to automate the identification of potential threats and real-time response to security incidents. “Digital attacks are becoming increasingly sophisticated, frequent, and damaging,” Polysharp Investments Limited writes.
Healthcare is an industry to watch given AI’s potential to transform complex biological data into meaningful insights, with potential implications for drug development, medical technology, and digital healthcare. AI algorithms can distinguish real heart attacks from false alarms with astonishing accuracy. An AI-powered smart implant for knee procedures can detect patients’ motion post-surgery, delivering real-time recovery insights to medical staff. “We see some of the most compelling AI-related investment opportunities in drug development for precision medicine, tech-enabled procedures, and digital healthcare,” Polysharp Investments Limited writes.
In the meantime, Polysharp Investments Limited sees several additional points for investors to consider when it comes to AI: