🤖 Public Companies set to Profit Big off AI

So which companies are expected to profit off if AI in 2023 and beyond?

Nvidea, Amazon, Microsoft, Meta and Alphabet are some of the more obvious giants. These companies get nowhere near the same media coverage but are also well placed to take advantage of the revolution, but should have a bit more room to grow..(🤖 Disclaimer: this is not financial advice 😉 )

updated 15/07/23

1) Mitek Systems Inc (MITK) is a leader in digital identity and digital fraud prevention, built on advancements in AI and machine learning. With consumers doing more business online than ever before, identity verification has become essential to providing safe digital access. That’s creating a big opportunity, especially with the identity verification market expected to reach just over $35 billion by 2030.

2) Palantir Technologies Inc Cl A (PLTR) had a rough outing in 2022. But don’t write it off just yet. The company, which helps other organizations see patterns in data, and helps make predictions about the future, is still very healthy. For one, Palantir is seeing big demand from the U.S. government. In fact, during the company’s most recent quarter, Palantir saw $987 million in government revenue, with most coming from the U.S. defense sector.

In its latest earnings report, revenues jumped about 18% year-over-year to $508.62 million. That was ahead of expectations by $3.64 million. Government revenue jumped 23% year over year to $293 million. Commercial revenue was up 11% to $215 million. And on the bottom line, the company saw adjusted earnings per share of four cents, which beat estimates for three cents.

3) C3.ai Inc (AI) is an an AI pure play, meaning the company’s entire focus is on artificial intelligence applications.

According to Simply Wall St, C3.ai Inc. (AI) earnings have been declining at an average annual rate of -50.3%, meanwhile the rest of the software industry saw earnings growing at 20.1% annually. Its revenues have been growing at an average rate of 21% per year, so overall consensus does seem bullish but the next two years are going to be telling.

4) SoundHound (SOUN) 🔊 is an audio and speech recognition company founded in 2005. It develops speech recognition, natural language understanding, sound recognition and search technologies.
Shares of SoundHound AI gained 157.1% in the first half of 2023, however like numerous AI-powered companies, this has consistently booked steep losses on the bottom line since it’s IPO. Investors should therefore exercise caution amid the hysteria for all things AI.

5) Symbotic Inc. (SYM) is an automation technology company, provides robotics and technology to improve efficiency for retailers and wholesalers in the United States. The company offers Symbotic system, an end-to-end warehouse automation system for product distribution. It also designs, assemblies, and installs modular inventory management systems and performs configuration of embedded software.

With profit expected to more than double over the next couple of years, the future seems bright for Symbotic. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation - however it’s share price has seen huge gain in the past year so a lot of that may be priced in already. And there’s appears to be a lot of dependency on recurring revenue so this is one I’ll be cautiously monitoring.

Other Smaller (smallcaps) Companies:

• Innodata is a technology company that provides comprehensive data processing and management solutions. The company’s expertise lies in leveraging cutting-edge AI and machine learning (ML) technologies to empower its clients with effective problem-solving capabilities.

• BigBear.ai delivers AI and ML solutions for decision support. The company operates in two segments, Cyber & Engineering and Analytics, and offers high-end technology and consulting services.

• Remark Holdings is a technology-focused company that primarily operates in AI and blockchain industries. Its products and services include facial and object recognition technology, AI-powered chatbots, blockchain-based financial services, and data analysis tools.

What sectors will benefit most from AI? Below are the 10 most prominent sectors as covered by Forbes.

Clearly that AI impacts almost all sectors at varying degrees but those which are heavily dependent on technology and automation will be where most opportunity lies over the next decade, whether that be in career or investment opportunities, here are 13 sectors to look out for:

1. Logistics

2. Cybersecurity

3. Healthcare

4. Enterprise Security

5. Research and Development

6. Financial Services Information Security

7. Information Security

8. Advertising

9. E-Commerce

10. Cloud Computing

11. Manufacturing

12. Public Transportation

13. Media Entertainment
    

For a bit of fun AI Junkie is planning to start an AI fund and its performance will be tracked against the S&P500 and other sectors 📊. So make sure you’re subscribed and stay tuned for that : )