Intercapital: Our Clients Are Increasingly Investing in Foreign Companies Developing AI

We cannot escape the stories about artificial intelligence. What was until recently reserved only for tech enthusiasts, futurists, and sci-fi movie screenwriters has now entered not only the mainstream but also the core of every business. Will AI (artificial intelligence) change us, and to what extent, is a question we all ask, from newsrooms to manufacturing plants, and even farmers are looking at how and where they can implement it in their business.

Analysts believe that AI will have a greater impact on the way we live and work than the industrial revolution. Others are even more enthusiastic, believing it could be the most significant event in human history. Some say it is a technology that can be placed ‘somewhere between fire and the internal combustion engine’.

AI-powered tools have already conquered the world. It took Instagram about two and a half years to reach 100 million users; TikTok reached the milestone in nine months. ChatGPT took only two months, making it the fastest-growing consumer application in history.

Six to Seven Percent of Global GDP

And when such a situation arises, the corporate world has certainly opened its eyes. Analysts from Goldman Sachs say that artificial intelligence could add six to seven percent to the annual global GDP over the next 10 years. Therefore, it is inevitable that this megatrend will have a seismic effect on investments not only from major players in the market but also from individual investors.

Elon Musk was among the first to realize that AI is a technology that will turn the world and business upside down, having invested in OpenAI at the very beginning with Sam Altman, and later Microsoft itself invested billions in that company. It is not only such ‘players’ in the capital market investing in AI companies; more and more small investors are turning to these companies, and it seems that our domestic investors are following such trends as well.

– Yes, our clients are investing in companies that are in one way or another connected to AI. These are most often large and well-known companies such as Nvidia, Microsoft, Google, and similar ones, and we have also seen increased interest from our clients in smaller software companies like c3.ai. All of these are foreign companies – they responded to us at Intercapital Asset Management.

In response to our inquiry to ‘calculate’ what return an investor would have achieved if they had invested in OpenAI, for example, at the end of last year, they told us that ‘any analysis of past returns of this or other companies, especially in the last six months, is not relevant for making future investment decisions and can only provoke FOMO (fear of missing out), which is not a healthy reason for making an investment decision.

Future Perspectives

– Investors must make decisions based on expectations of future business prospects, taking into account the company’s valuation and expectations of future valuation. A good or promising company is not necessarily a good investment, especially in the short term – they convey from Intercapital.

There are many ways to enrich your investment portfolio with AI. You can invest in companies that produce AI hardware, develop AI solutions, or sell AI development tools. You can also invest in companies that effectively utilize technology to create better products, improve marketing, or increase efficiency.

However, it is clear that anyone wishing to adopt this approach should be cautious. Although the potential is exciting, the technology is not yet fully perfected, and there are many things we do not understand. There is also a high likelihood that not all companies involved in AI will survive. Therefore, it is important to remember that the safest option when it comes to investing is diversification, as well as being prepared for certain volatility.