AI will move into every industry. It will radically reduce costs, replace 40 percent of conventional jobs and destroy business models in the long term. AI will have a similar revolutionary effect as the invention of electricity - but it will enter our lives much faster.
Artificial intelligence (AI) is a branch of computer science that deals with the automation
of intelligent behavior and machine learning based on digital data.
The possibility of machine learning opens a very large spectrum for potential fields of application of artificial intelligence, which are conceivable in almost all areas of life. More and more companies are recognizing this aspect, with the result that the market has grown dynamically over the last few years and, according to forecasts, will continue to grow. A distinction is made between two types of companies:
Companies that include the use of AI in their value creation in order to use efficiency and productivity increases with the aim of better serving their customers and creating added value relevant to competition, and
companies that deal with the development of AI products/processes at the core of their value creation and thus represent the real hidden champions. AI companies that follow this definition are already significantly better valued on the stock exchange than classic companies and show an increased growth of their market capitalization compared to classic companies.
Against this background, the AI-INDEX comprises 15 high-growth companies, weighted by their market capitalization and for comparison with other indices collectively normalized to 1.000 points on the start date (1/2019), whose value creation is based on the creation of AI products and processes.
„In the coming years, artificial intelligence will begin its journey advance. Why? Because after Big Data, Big Intelligence comes to evaluate the flood of data! Only AI systems can help companies to filter out the market trends and business potential from the abundance of more or less structured data volumes that will be at the heart of digital business.“
The AI-INDEX 15 currently comprises 15 companies that design, create, integrate or provide artificial intelligence (AI) in the form of products, software or systems. This distinguishes them from other tech companies that "just use" AI but do not regard it as the core of their value creation and their products or services.
Weighted by their market capitalization, the following stocks are currently included in the AI-INDEX: Ansys, Cadence Design Systems, CrowdStrike, DocuSign, Dynatrace, Fortinet, iFlytek, NICE Ltd., Palantir Technologies, Palo Alto Networks, Pegasystems, ServiceNow, Synopsys, theTradeDesk and Veeva Systems.
AI-INDEX 15 compared to Dow Jones, Nasdaq Composite and Dax 40 since calendar week 1/19
Mar. 21, 2025 - 03:50 PM (CET)
The AI-INDEX is up this week (week 12) and is trading at 5,346 basis points with a gain of 297 bips. Docusign is the best performer with a price gain of 14.2 percent. The US company, based in San Francisco, offers products for companies to manage electronic agreements with e-signatures on various devices. With a price loss of 1.9 percent, iFlytek is the lowest performer this week. The Chinese IT company based in Hefei develops hardware and software products with a focus on intelligent voice and technology. Although the political situation is currently dominating market activity, the US Federal Reserve's interest rate meeting on Wednesday nevertheless became the focus of investors' attention. Despite the US government's protectionist trade policy, the Federal Reserve stuck to its course of lowering interest rates, thus calming the markets. In Germany, the Bundestag passed the amendment on the debt brake, paving the way for an extensive debt-financed financial package. The prospect of billions in investment boosted the DAX, which subsequently reached new record highs. The AI-INDEX rises this week by 5.9 percent (Nasdaq Composite: 2.2%; Dow Jones: 2.8%; Dax: 1.9%).
The year 2024 was characterized by hopes of interest rate cuts, geopolitical uncertainties and the ongoing AI euphoria. In the third quarter,
the US Federal Reserve lowered the interest rate for the first time in four years, triggering a price rally on the US stock markets. Donald Trump's
election victory also led to strong price gains and increased market volatility. Meanwhile, the German economy came under further pressure. Gross
domestic product shrank for the second year in a row and political turmoil led to the break-up of the governing coalition. Nevertheless, the
DAX also climbed to new highs.
The ongoing AI hype and the associated price gains surrounding the manufacturer of high-performance AI chips
Nvidia boosted the AI-INDEX. Starting at 3,663 basis points (2024, week 1), the AI-INDEX ended the year on a very high level of 5,888 basis
points (2024, week 52) due to a strong performance.
With an increase of 492.2 percent since the beginning of the year, big data and analytics company Palantir Technologies shows the strongest development.
Pegasystems (Enterprise AI & automation) and theTradeDesk (online marketing) also delivered strong performance for the year with 116.2 percent and 81.7
percent respectively. The Israeli cloud company NICE Ltd. posted the weakest performance with a loss of 10.0 percent.
Overall, the AI-INDEX rose by 2,225 basis points in 2024, which corresponds to an annual performance of 60.8 percent
(Nasdaq Composite: 37.9%; Dow Jones Industrial: 15.8%; DAX: 20.1%). In week 50, the AI-INDEX reached its highest level to date of 5,944
basis points, corresponding to an annual performance of 62.3% at that time.
In 2023, the coronavirus pandemic came to an end after three years and the markets had the chance to recover,
almost skyrocketing. Investors were more optimistic than ever before, which was reflected on the stock markets
by the record prices of the AI-INDEX and other major indices. In the technology sector in particular, this
optimism can be attributed to AIs such as ChatGPT. These have found their way into everyday life and have
already been integrated into many conventional programs, making the potential of AI tangible for many for the
first time. Starting at 2,172 basis points (2023, week 1), the AI-INDEX ended the year on a very high level of
3,856 basis points (2023, week 52) due to a strong performance.
With an increase of 190.6 percent since the beginning of the year, big data and analytics company Palantir
Technologies shows the strongest development. CrowdStrike (cybersecurity) and Palo Alto Networks (cybersecurity)
also delivered strong performance for the year with 176.5 percent and 128.1 percent respectively. The Israeli cloud
company NICE Ltd. posted the weakest performance with a gain of 7.3 percent. As a result, no company in the AI-INDEX
recorded a negative annual performance.
Overall, the AI-INDEX rose by 1,684 basis points in 2023, which corresponds to an annual performance of 77.6 percent
(Nasdaq Composite: 46.3%; Dow Jones Industrial: 13.7%; DAX: 15.8%). In week 51, the AI-INDEX reached its highest level
to date of 3,873 basis points, corresponding to an annual performance of 78.3% at that time.
The year 2022 was characterized by the Russian war against Ukraine and the associated energy crisis
in Europe. The economic recovery following the economic slump caused by the Covid-19 pandemic also
led to rising energy prices. The subsequent rise in the inflation rate led to interest rate hikes by
the European Central Bank and the Federal Reserve. These interest rate hikes primarily affected tech
stocks that rely on venture capital and had a negative impact on the AI-INDEX. Starting at 3,235 basis
points (2022, week 1), the AI-INDEX had to end the year with 2,259 basis points (2022, week 52) due
to losses.
With a decline of 7.3 percent since the beginning of the year, the US company for
design-for-manufacturing solutions Synopsys held up the best. Cadence Design Systems (the largest
provider of EDA software) showed a similar annual performance with a decline of 7.4 percent. In
contrast, the US company Palantir Technologies, which specializes in the analysis of large amounts of
data (big data), suffered the biggest decline with a loss of 60.4 percent.
Overall, the AI-INDEX fell by 976 basis points in 2022, which corresponds to an annual performance of
-30.2 percent (Nasdaq Composite: -31.2%; Dow Jones Industrial: -8.5%; DAX: -12.8%).
Although 2021 was characterized by both economic and social ups and downs, in retrospect it was a
successful year for the AI-INDEX, in which solid price gains were achieved. Starting at 3,079 basis
points (2021, week 1), the AI-INDEX ended the year with 3,579 basis points (2020, week 53) due to a
solid performance.
With a strong performance of 48.6 percent, the US technology company Dynatrace recorded the strongest
development in 2021. Xilinx (manufacturer of programmable logic circuits) and Synopsys (provider of
design-for-manufacturing solutions) also delivered strong performances for the year with 44.5 percent
and 43.6 percent respectively. In contrast, the US cloud software company Splunk posted the weakest
performance with a decline of 30.1 percent. Although Splunk's annual performance was still slightly
positive at the beginning of the fourth quarter, the company recorded a significant decline in performance
following the announcement of the resignation of CEO Doug Merritt in week 46.
Overall, the AI-INDEX rose by 500 basis points in 2021, which corresponds to an annual performance of
16.2 percent (Nasdaq Composite: 20.5%; Dow Jones Industrial: 17.3%; DAX: 13.7%). In week 45, the
AI-INDEX reached its highest level to date of 3,859 basis points, corresponding to an annual performance
of 25.3% at that time.
Overall, 2020 was a year of growth for the AI-INDEX. Starting at 1,664 basis points
(2020, week 1), the AI-INDEX ended the year on a very high level of 3,099 basis points
(2020, week 53) due to a strong performance.
With a performance of 361.2 percent, the US cybersecurity company CrowdStrike showed
the strongest development in 2020. theTradeDesk (online marketing) and Five9 (call &
contact center as a service) also delivered strong performances for the year with 207.0
percent and 182.2 percent respectively. The Canadian technology company OpenText posted
the weakest performance with a gain of 2.9 percent. As a result no company in the AI-INDEX
declines in market value in 2020.
Overall, the AI-INDEX rose by 1,435 basis points in 2020, which corresponds to an annual
performance of 86.2 percent (Nasdaq Composite: 42.4%; Dow Jones Industrial: 5.8%; DAX: 3.8%).
In week 52, the AI-INDEX reached its highest level to date of 3,180 basis points,
corresponding to an annual performance of 91.1% at that time.
„Artificial intelligence is one of the big technologies of our future. Germany and the EU must become an attractive AI location for entrepreneurs, where risk-taking is appreciated and innovative spirit meets the best conditions.“
