The artificial intelligence industry is on the cusp of remarkable growth writes Wealth Within chief analyst Dale Gillham. So, what are the Aussie companies to watch?
Whether you like or use artificial intelligence (AI) technology or not, we can all agree that it's here to stay. From an investment viewpoint, if the Australian AI sector can perform like its American neighbour, then we could be staring at a future goldmine for early investors.
With that in mind, let’s take a look at Australia's AI industry to uncover those companies at the forefront of the AI revolution. Before we do, let’s take a brief look at the US market.
The Nasdaq Composite has recovered rapidly since the COVID-19 pandemic, rising over 55% from the 2022 low. This is largely due to investment in AI-related companies such as AWS, Google (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Meta and NVIDIA (NASDAQ:NVDA), with NVIDIA’s share price up over 60 per cent this year alone!
Despite the Australian market being heavily weighted towards the financials and materials sectors, I believe the artificial intelligence industry is on the cusp of remarkable growth. This is being driven by the recent improvements in generative AI and a greater willingness to use AI in different industries. According to projections, AI spending in Australia is expected to reach US$6.4 billion by 2026, contributing to an estimated AU$22.7 trillion boost to the global economy by 2030. If that's not exciting enough, February saw the tech sector just have its strongest gains in one month.
The companies to watch
So, with this increased interest in the sector, let's take a look at three companies that have caught my attention.
Dale Gillham is chief analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in bookstores and online at www.wealthwithin.com.au