Exchange traded fund investors should future-proof portfolios with disruptive technologies.
On the recent webcast, Behind the Machines: Investing in Robotics from a Research Perspective, Jeremie Capron, Director of Research for ROBO Global, said that the robotics and artificial intelligence industry is set on an exponential growth path.
Expensive industrial robots were first introduced exclusively to auto manufacturers in the 1960s, and by today, the robotics, automation and artificial intelligence industry has grown to over $200 billion. As automation costs decline and technology advances, applications for robotics and artificial intelligence have expanded, helping improve productivity across a range of industries. Looking ahead, the robotics, automation and artificial intelligence segment could grow to over $1 trillion by 2035.
Robotics and artificial intelligence has been a transformational technology. The declining costs in technology has driven increased robotics investments. Meanwhile, big data has fueled growth in artificial intelligence. The advancements touched upon many industries, helping improve areas like logistics automation, e-commerce growth and healthcare, among others.
Looking ahead, Capron pointed to a number of factors that may continue to support the entire robotics and artificial intelligence supply chain and drive long-term growth potential, including the low penetration of robotics, ongoing technological advances, potential social benefits and shifting demographics.
Lisa Chai, Senior Research Analyst for ROBO Global, also pointed out that the expansion in the robotics and A.I. industries are being reflected by real earnings growth. The transformational technologies are in high demand and advances are helping reducing cost in the supply chain. Consequently, the industry is experiencing fast earnings growth trajectories, with 20% or more earnings per share growth, double-digit sales growth and five consecutive quarters of beats.
Chai also highlighted some of the more standout players that have been adopting and pioneering the new technologies. For example, Nvidia Corp. (NasdaqGS: NVDA) has revolutionized computing and powered A.I. with the industry leading GPU platform. The tech company has the largest market share in gaming and datacenters, producing A.I. or machine learning training for autonomous cars, blockchain and high performance computing.