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.
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: C3.AI, Cadence Design Systems, CrowdStrike, Dynatrace, Five9, iFlytek, NICE, Nuance Communications, Palantir Technologies, ServiceNow, Splunk, Synopsys, theTradeDesk, Veeva Systems, Xilinx.
AI-INDEX 15 compared to Dow Jones, Nasdaq Composite and Dax 30 since calendar week 1/19
Sep. 24, 2021 - 05:57 PM (CET)
The AI-INDEX was unable to maintain the record levels of recent weeks and fell slightly (-52bp) to a total of 3,498 basis points this week (week 38). Thus, it trades slightly lighter than in previous weeks, but remains close to the mark of 3,500 basis points. With a performance increase of 0.66 percent compared to the previous week, the Californian company theTradeDesk, which operates in the digital advertising segment, shows the best performance. In contrast, the global provider of customer-focused enterprise software - NICE Ltd - recorded the weakest performance with a decrease of 4.07 percent compared to the previous week. Although tech company Dynatrace trades slightly lighter as well for the past week (-0.08%), it is performing the best with a performance increase of 78.06 percent since the beginning of the year. Since the beginning of the week, the German benchmark index now includes 40 index members instead of the usual 30. Additions include online fashion retailer Zalando, cooking box delivery company HelloFresh and aircraft manufacturer Airbus. However, persistent economic worries and the European Central Bank's uncertain monetary policy prevented the Dax from making a positive debut. In addition, the impending insolvency of the Chinese real estate giant Evergrande also led to sharp price losses on the international markets, which is why the indices under consideration turn predominantly negative at the end of the week (Nasdaq Composite: -1.05%, Dax: -0.48%, Dow Jones: +0.27%). Although the AI-INDEX trades slightly lighter as well compared to the previous week (-1.47%), it continues to perform well ahead of the other indices in the annual view.
Overall, 2020 was a year of growth for the AI-INDEX. Starting at 1,627 basis points (2020, CW 1), the AI-INDEX was able to end the year on a very high note with a strong performance of over 3,002 basis points (2020, CW 53).
With an annual performance of 332.2 percent, the U.S. cybersecurity company CrowdStrike shows the best performance in 2020, while theTradeDesk (online marketing) with 208.2 percent and Five9 (provider of contact center software in the cloud area) with 175.1 percent also displayed strong annual performance. With an increase of 3.3 percent, the Canadian technology company OpenText suffered the weakest annual performance. As a result, however, no company in the AI-INDEX recorded a negative annual performance.
The AI-INDEX has increased by 1,375 basis points in 2020, which corresponds to an annual performance of 84.5 percent (Nasdaq Composite: 42.4%; Dow Jones Industrial: 5.9%; DAX: 3.8%). In calendar week 52, the AI-INDEX reached its highest level to date of 3,113 basis points, which corresponded to an annual performance of 91.4 percent at that time.
Above all, the index comparison illustrates the large lead of AI companies on the stock market: AI-INDEX: 3,002 bp; Nasdaq Composite: 1,906 bp; Dow Jones Industrial: 1,293 bp; DAX: 1,274 bp.