Weekly Fund Investment Focus - Artificial Intelligence (AI) Industry

1. Recently, ChatGPT, an AI chatbot owned by the startup company OpenAI, has taken the world by storm. It is estimated that the number of users has exceeded 100 million in just two months since its launch, and has become the fastest application in history to reach this goal.

2. The ChatGPT concept continues to be popular, setting off a boom in investment in artificial intelligence (AI) in the market.

3. AI can be divided into two categories, namely “Analytical AI” (Analytical AI) and “Generative AI” (Generative AI). Among them, the formative artificial intelligence market to which ChatGPT belongs is expected to reach 53.9 billion US dollars in 2028, with a predicted compound annual growth rate of 32.2%. [1]

4. Overall, with the gradual development and application of artificial intelligence technology, the size of the artificial intelligence market may grow rapidly. According to the latest IDC data, the scale of the global AI industry is forecast to grow to 221.87 billion US dollars in 2025, with a five-year compound annual growth rate of 26.2%. [2]

Investment interpretation:

1. Based on Moore's Law of Everything, the best way to increase social wealth is to reduce commodity costs, and the past three technological revolutions in human history — agriculture, industry, and technology — can rapidly drive this cost reduction. I believe artificial intelligence (AI) will be the fourth technological revolution.

2. We believe that at present, the commercial application of artificial intelligence (AI) is still in the early stages of development, and the huge disruptive changes brought about by it are still in the early stages.

3. At a time when market bubbles and opportunities coexist, recent favorable news in the artificial intelligence (AI) industry has created some investment opportunities for speculators, but investors also need to understand and evaluate related investment risks.

4. For investors who want to seize medium- to long-term investment opportunities in the AI industry, they can start from industry trends.

5. One category is semiconductor manufacturers related to AI chip development; the first category is cloud, IoT, 5G, big data, language recognition, etc. of AI infrastructure; the other category is third-party application companies that develop software for segmented scenarios (such as autonomous vehicles, finance, streaming media, e-commerce, etc.).

Related funds (US technology funds, and the top three industries in the industry are semiconductors and related equipment, software, hardware, or IT service-related subsectors)

$Allianz Global Artificial Intelligence (LU1548497426.MF)$

$Franklin Technology Fund (LU0109392836.MF)$

$BlackRock World Technology Fund (LU0056508442.MF)$

$BGF Next Generation Technology Fund (LU1861215975.MF)$

$JPMorgan Funds-US Technology Fund YDis (LU0082616367.MF)$

Source 1: KBV Research, Dec 2022, Global Generative AI Market Size, Share & Industry Trends Analysis Report By Component, By Technology, By End Use, By Regional Outlook and Forecast, 2022 — 2028

Source 2: IDC, March 2022, IDC Worldwide Artificial Intelligence Analyst Guide

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