We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AI ETFs: Review of Transformative Year 2023 & Outlook for 2024
Read MoreHide Full Article
The year 2023 was pivotal in the Artificial Intelligence (AI) industry, characterized by dynamic company moves, groundbreaking initiatives, major product launches, substantial investments and strategic acquisitions. Companies like Google, Microsoft and Amazon introduced significant updates to their AI services, emphasizing improved performance, user experience and ethical AI practices (read: Emerging AI Trends: Insights for ETF Investors).
Major AI Product Launches and Updates in 2023
It all started with OpenAI releasing ChatGPT in late November 2022, Microsoft announcing huge investments in OpenAI in January 2023, Google launching Bard Chatbot in February 2023, Microsoft unveiling Bing Chat in Windows 11 and OpenAI continuing to lead the AI revolution with the launch of GPT-4 in March. Then, Google debuted AI-powered search and BARD in May 2023, Nvidia’s market cap hit the $1-trillion mark in late May 2023 on AI euphoria, which boosted the demand for chips.
After that, things in the AI arena strengthened with Anthropic launching CLAUDE 2 in July 2023. OpenAI debuted GPT enterprise in late August 2023. Amazon bet on Anthropic in September. The Biden government signed an AI executive order in October 2023, Amazon announced the launch of its new chatbot – "Q" – in late November 2023 and Google unveiled its most effective Generative AI model, Gemini, in December 2023.
What's Next: The 2024 AI Landscape
As 2023's excitement calms down, the focus shifts to what 2024 holds for generative AI. A wider spread of AI among consumers is expected next year. Experts predict a significant impact on the tech industry with broader everyday applications. Bob O’Donnell, president of TECHnalysis, believes 2024 will be pivotal for AI, integrating it into daily tools like PCs, smartphones and multimedia platforms, as quoted in a Yahoo Finance article.
AI-Enhanced Consumer Hardware Expected in 2024?
The year 2024 is likely to witness the launch of AI-equipped PCs and other devices, moving some cloud-based AI processes to local devices. For instance, Google's Pixel 8 series, with the Tensor G3 chip, showcases AI-driven features like photo editing and audio filtering. Investors can expect similar advancements from companies like HP, Dell, Lenovo and possibly Apple, per experts, as quoted on Yahoo Finance.
A Leap Beyond General-Purpose AI Likely in 2024?
Generative AI platforms like ChatGPT have been jack-of-all-trades. However, 2024 aims to introduce more specialized and customized AI systems focused on specific fields and tasks. University of Maryland's Hal Daumé III sees a trend toward data-rich domains, predicting specialized AI applications in weather forecasting, cybersecurity and medical research, as quoted on Yahoo Finance.
Focus Will Remain on Resourcing AI Chip
Nvidia currently leads in AI accelerators and software. However, its chip scarcity has prompted giants like Microsoft, Amazon and Google to develop their own AI chips. This internal development, along with competition from AMD and Intel, signals a more competitive market. Qualcomm is also trying to strengthen its presence in the AI chip market.
ETFs in Focus
With AI technology rapidly advancing and becoming increasingly integral to various industries, investors are looking for ways to capitalize on this trend. Below, we highlight a few AI-focused ETFs for investors.
ROBO Global Robotics and Automation Index ETF (ROBO - Free Report)
The underlying ROBO Global Robotics and Automation Index measures the performance of companies that derive a portion of revenues and profits from robotics-related or automation-related products or services. The fund charges 95 bps in fees.
Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report)
The underlying Indxx Global Robotics & Artificial Intelligence Thematic Index invests in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence, including those involved with industrial robotics and automation, non-industrial robots and autonomous vehicles. The fund charges 69 bps in fees.
The underlying NYSE FactSet Global Robotics and Artificial Intelligence Index is composed of equity securities of companies primarily listed in one of 43 developed or emerging market countries that are the most involved in, or exposed to, one of the 22 robotics and artificial intelligence-related FactSet Revere Business Industry Classification Systems. The fund charges 47 bps in fees.
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT - Free Report)
The underlying Nasdaq CTA Artificial Intelligence and Robotics Index is designed to track the performance of companies engaged in Artificial intelligence, robotics and automation. The fund charges 65 bps in fees.
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AI ETFs: Review of Transformative Year 2023 & Outlook for 2024
The year 2023 was pivotal in the Artificial Intelligence (AI) industry, characterized by dynamic company moves, groundbreaking initiatives, major product launches, substantial investments and strategic acquisitions. Companies like Google, Microsoft and Amazon introduced significant updates to their AI services, emphasizing improved performance, user experience and ethical AI practices (read: Emerging AI Trends: Insights for ETF Investors).
Major AI Product Launches and Updates in 2023
It all started with OpenAI releasing ChatGPT in late November 2022, Microsoft announcing huge investments in OpenAI in January 2023, Google launching Bard Chatbot in February 2023, Microsoft unveiling Bing Chat in Windows 11 and OpenAI continuing to lead the AI revolution with the launch of GPT-4 in March. Then, Google debuted AI-powered search and BARD in May 2023, Nvidia’s market cap hit the $1-trillion mark in late May 2023 on AI euphoria, which boosted the demand for chips.
After that, things in the AI arena strengthened with Anthropic launching CLAUDE 2 in July 2023. OpenAI debuted GPT enterprise in late August 2023. Amazon bet on Anthropic in September. The Biden government signed an AI executive order in October 2023, Amazon announced the launch of its new chatbot – "Q" – in late November 2023 and Google unveiled its most effective Generative AI model, Gemini, in December 2023.
What's Next: The 2024 AI Landscape
As 2023's excitement calms down, the focus shifts to what 2024 holds for generative AI. A wider spread of AI among consumers is expected next year. Experts predict a significant impact on the tech industry with broader everyday applications. Bob O’Donnell, president of TECHnalysis, believes 2024 will be pivotal for AI, integrating it into daily tools like PCs, smartphones and multimedia platforms, as quoted in a Yahoo Finance article.
AI-Enhanced Consumer Hardware Expected in 2024?
The year 2024 is likely to witness the launch of AI-equipped PCs and other devices, moving some cloud-based AI processes to local devices. For instance, Google's Pixel 8 series, with the Tensor G3 chip, showcases AI-driven features like photo editing and audio filtering. Investors can expect similar advancements from companies like HP, Dell, Lenovo and possibly Apple, per experts, as quoted on Yahoo Finance.
A Leap Beyond General-Purpose AI Likely in 2024?
Generative AI platforms like ChatGPT have been jack-of-all-trades. However, 2024 aims to introduce more specialized and customized AI systems focused on specific fields and tasks. University of Maryland's Hal Daumé III sees a trend toward data-rich domains, predicting specialized AI applications in weather forecasting, cybersecurity and medical research, as quoted on Yahoo Finance.
Focus Will Remain on Resourcing AI Chip
Nvidia currently leads in AI accelerators and software. However, its chip scarcity has prompted giants like Microsoft, Amazon and Google to develop their own AI chips. This internal development, along with competition from AMD and Intel, signals a more competitive market. Qualcomm is also trying to strengthen its presence in the AI chip market.
ETFs in Focus
With AI technology rapidly advancing and becoming increasingly integral to various industries, investors are looking for ways to capitalize on this trend. Below, we highlight a few AI-focused ETFs for investors.
ROBO Global Robotics and Automation Index ETF (ROBO - Free Report)
The underlying ROBO Global Robotics and Automation Index measures the performance of companies that derive a portion of revenues and profits from robotics-related or automation-related products or services. The fund charges 95 bps in fees.
Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report)
The underlying Indxx Global Robotics & Artificial Intelligence Thematic Index invests in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence, including those involved with industrial robotics and automation, non-industrial robots and autonomous vehicles. The fund charges 69 bps in fees.
iShares Robotics And Artificial Intelligence Multisector ETF (IRBO - Free Report)
The underlying NYSE FactSet Global Robotics and Artificial Intelligence Index is composed of equity securities of companies primarily listed in one of 43 developed or emerging market countries that are the most involved in, or exposed to, one of the 22 robotics and artificial intelligence-related FactSet Revere Business Industry Classification Systems. The fund charges 47 bps in fees.
First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT - Free Report)
The underlying Nasdaq CTA Artificial Intelligence and Robotics Index is designed to track the performance of companies engaged in Artificial intelligence, robotics and automation. The fund charges 65 bps in fees.
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)