Capital IdeasTM

Investment insights from Capital Group

Capital IdeasTM

Investment insights from Capital Group

Categories
Artificial Intelligence
AI and the new tech megacycle
Julien Gaertner
Investment Analyst
Drew Macklis
Investment Analyst
Mihir Mehta
Investment Analyst
July 27, 2023
Download PDF

Too busy to plan your next business trip? Imagine this scenario: You set a date and destination in your digital calendar and then a bot powered by artificial intelligence (AI) does the rest. It searches for the cheapest flight that complies with your employer's work travel policies, picks your preferred aisle or window seat, pays for the ticket, and adds it to your calendar.

Science fiction? This reality may not be too far in the future.

Given the vast potential of AI, it's no surprise the market has sought to sniff out early winners and losers. Many technology stocks have soared since ChatGPT captured the public's imagination earlier this year.

We believe this is the start of the next megacycle for the technology sector.

The chart below shows that the global AI market is projected to reach nearly US$2 trillion by 2030.


The global AI market is projected to reach nearly US$2 trillion by 2030

Data as at January 2023. Years 2023 through 2030 are estimated. Lighter blue boxes represent estimates. CAGR = compound annualized growth rate. Sources: Next Move Strategy Consulting, Statista

Read the full article

Julien Gaertner is an equity investment analyst at Capital Group with research responsibility for enterprise software & services and technology hardware & equipment in the U.S. and Europe, and health care IT in the U.S. He has 11 years of investment industry experience, all with Capital Group. He holds a bachelor’s degree in economics and international relations from Brown University. Julien is based in San Francisco.

Drew Macklis is an equity investment analyst at Capital Group with research responsibility for U.S. semiconductors and autos & mobility technology. He has six years of investment industry experience and has been with Capital Group for three years. He holds an MBA from Harvard Business School, where he graduated as a Baker scholar and recipient of the John L. Loeb Award, and a bachelor's degree in economics and global affairs from Yale University, where he graduated magna cum laude. Drew is based in San Francisco. 

Mihir Mehta is an equity investment analyst at Capital Group with research responsibility for U.S. semiconductor and hardware companies. He has nine years of investment industry experience and has been with Capital Group for four years. He holds an MBA from Stanford Graduate School of Business and bachelor's degrees in economics and international studies from Johns Hopkins capitalgroup.com 8 University graduating magna cum laude. Mihir is based in New York. 

Learn more about
Artificial Intelligence
U.S. Equities
Global Equities
Regulation & Legislation
Technology & Innovation

Our latest insights

RELATED INSIGHTS

Hear from our investment team.

Sign up now to get industry-leading insights and timely articles delivered to your inbox.

By providing your details you are agreeing to receive emails from Capital Group. All emails include an unsubscribe link and you may opt out at any time. For more information, please read the Capital Group Privacy Policy

Past results are not predictive of results in future periods. It is not possible to invest directly in an index, which is unmanaged. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.

Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.

Past results are not predictive of results in future periods. It is not possible to invest directly in an index, which is unmanaged. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.

Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.

Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.