TLDR:
- Ark Invest predicts a $28 trillion opportunity in the AI sector by the end of the decade.
- The company is currently invested in segments like autonomous vehicles, drones, robotics, energy storage, 3D printing, and space exploration.
As the buzz around artificial intelligence continues to grow, investors are looking for opportunities in sectors poised to benefit. Ark Invest’s Tasha Keeney predicts that the equity market capitalization attributable to innovation will increase to $220 trillion by the end of the decade, a significant jump from its current level of $15 trillion-$20 trillion. Most of this growth is expected to come from AI.
Ark Invest is currently invested in various sectors related to AI, including autonomous vehicles, drones, robotics, energy storage, 3D printing, and space exploration through its Ark Autonomous Tech & Robotics ETF (ticker ARKQ). While the fund saw success in 2020, it is currently down around 3.7% year-to-date.
One area that Keeney is particularly enthusiastic about is autonomous cars, which she believes could represent a $28 trillion opportunity. She highlighted Tesla as a standout company in this industry, citing the company’s progress in self-driving technology despite some limitations. Ark Invest has a target price of $200 on Tesla, which is currently trading around $178.
Besides autonomous cars, Keeney is also interested in opportunities in autonomous drones. She mentioned Kratos Defense and Security Solutions and AeroVironment as companies to watch in this space due to their expertise in drone technology. Keeney noted that drone technology has applications beyond the military and highlighted Walmart’s partnership with drone delivery companies to streamline consumer costs.
Overall, Ark Invest sees significant potential in the AI sector and is actively seeking opportunities in areas like autonomous vehicles and drones.