AI is the siren song of 2023. It’s been around for a couple of years, from photo editing to voice assistants (Siri, Alexa) and video recommendations. However, the rapid advancements in the field of generative artificial intelligence (GAI) have brought AI closer to our day-to-day lives. It began with the launch of ChatGPT by OpenAI late last year and the realisation that AI is likely just getting started with much more to come.
Every investor dreams of getting in on the ground floor of the next “big thing” and riding the wave to untold riches and good fortune. However, it’s incredibly difficult to understand a new wave and who the long term winners will be. Most investors cannot do that. What the best investors do, however, is to identify those companies who are providing the rails or resources to support that wage. It’s a bit similar to the popular saying that when there is a gold rush, you need to invest in shovels. So how is Rise investing in the AI “shovels” right now?
Here are some ways we are doing that:
Rise has invested in the leading companies in each chain.
Our Rise equity portfolio contains several companies that sit on the AI supply chain, from the designer and manufacturer of advanced chips ,ASML, to TSMC, the world’s leading semiconductor foundries. Also, we opened a starter position in the world’s number one player in the AI chip market, NVIDIA (up roughly 98.81% this year). ASML owns 90% of the market for highest performance chips, while TSMC owns more than half the market for foundaries (factories that manufacture these chips).
These companies will continue to benefit from the AI wave.
Our Rise Equity Portfolio is well diversified.
Aside from these three companies who sort of provide a lot of the “plumbing” for AI services (for instance ChatGP was trained on almost 30,000 NVIDIA’s graphic chips), there are some other companies that are also bringing AI to the users directly. ChatGPT’s OpenAI is still private, but companies like Facebook, Google and Microsoft are adding AI to their search, ad, provudictity and recommendation services at a rapid pace. All three of them are also in Rise’s portfolio. This means that investing in our equity portfolio gives you access to multiple companies driving AI deployment to the masses, increasing your odds of betting on the winner.
This is a rapidly evolving space of course, and we will continue to stay on top of the changes and developments in AI as a whole in order to educate and update you, as well as funnel your money into the right bets to win the future and build long term wealth for you. That is core to our mission and we appreciate you for taking that journey along with us.