Many companies are looking to share in the paradigm shift brought about in the technology world by AI and robotics. Among them is Amazon, for instance. The online giant first put its faith in robot technology with the purchase of Kiva Systems back in 2012. Amazon, however, would like not only to automate its own business, but also provide its customers with digital assistants. To that end the group recently sought to acquire robot vacuum cleaner manufacturer iRobot, but could not get over the regulatory hurdles. It remains to be seen which target Amazon will look to acquire next in this segment. ABB, the world’s second largest manufacturer of industrial robots, has already found a candidate: a few weeks ago the group acquired AI firm Sevensense with a view to equipping its entire mobile robot fleet with artificial intelligence in order to drive future growth. In the medical robot sector, Intuitive Surgical is currently the focus of attention. Recently the company submitted an application to the US health authorities, the FDA, for approval for the next generation of its world-famous “da Vinci” robot system. The four-armed surgical machine is said to have “hundreds” of design changes and 10,000 times the computing power.
Robot manufacturers are not the only ones profiting from the digital mega-trends, though, with suppliers, too – particularly in the chip sector – enjoying a boom in business. A prime example of this is Nvidia, the US semiconductor group, which in February reached a market capitalisation of more than USDtn 2 for the first time. Nvidia is regarded as a major beneficiary in the AI sector for good reason: with its high-performance chips, the Californian company controls around 80% of the global market. Its customer base includes well-known names such as Microsoft, Meta Platforms and even ChatGPT developer OpenAI. One competitor that Nvidia needs to take seriously is AMD. At the turn of the year the group positioned itself in the race for the USD 400bn AI chip market with the launch of new products. According to the company’s press release, the processors are “the most advanced AI accelerators in the industry”. The MI300X alone is expected to bring in revenue of USDbn 0.5 by the middle of the year. Over the year as a whole, sales of AI special chips are set to exceed the USDbn 2 mark by some distance.
The booming prospects for robots and artificial intelligence have led to a sharp rise in the share prices of many protagonists in the industries. Over the last year ABB’s share has climbed 37% in value, that of Intuitive Surgical by almost two thirds, while AMD and Nvidia stock has more than doubled and tripled respectively. The positive trend is also clearly reflected in the Swissquote Robotics & Artificial Intelligence Index, the broadly diversified benchmark having appreciated by rather more than a fifth over the last twelve months. The index includes a total of 30 companies – including the stocks mentioned in this text – from the promising sectors. In terms of region, companies from the USA lead the way. At the moment the total 23 stocks from elsewhere make up 64% of the barometer’s price movement. The absolute index heavyweight, however, is the Japanese Obic, which accounts for a 6% share. There are another 3 stocks from the Far East in the selection alongside the software group, including Fanuc, the world’s largest robot manufacturer. In August 2023 the company passed the record mark of 1 million industrial robots delivered in total.
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