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

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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. 

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