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.

Kai-Fu Lee

Artificial Intelligence

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/processes.

Artificial Intelligence
Tobias Kollmann

„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.“

AI-INDEX 15

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: Crowdstrike, Veeva Systems, The Trade Desk, Cadence Design Sys, Servicenow, Dynatrace, Pegasystems, Ciena Corp, Synopsis, Nice Ltd., Splunk, iFlytek, Xilinx, Open Text, Five9.

AI-INDEX 15 compared to Dow Jones, Nasdaq Composite and Dax 30 since calendar week 1/19



AI-INDEX Development

Index development

AI-INDEX closes slightly lower but still on a high level

Oct. 25, 2020 - 09:55 AM (CET)

October 25, 2020. The AI-INDEX ends calendar week 43 slightly lower (-37 bp) but still on a high level, returning to its value of calendar week 41 at approx. 2,693 basis points. Wall Street investors continue to be cautious. Their main priority on the agenda is still the trillion dollar economic stimulus package. However, it is now considered to be certain that such an aid package will not be passed by the Congress before the elections on November 3. In addition, the high number of new corona infections continues to hold back the economy. The US Federal Reserve has repeatedly pointed out that overcoming the pandemic is a fundamental condition for economic recovery. After purchasing the data analysis startups Plumbr and Rigor, the big data specialist Splunk shows the best performance of the week with a plus of 4.5 percent. With a decline of 6.83 percent compared to the previous week, the US cybersecurity company CrowdStrike suffered the most severe losses among the companies considered in the AI-INDEX. Just like the reference indices, the AI-INDEX also declined compared to the previous week (AI-INDEX: -1.34%; Nasdaq Composite: -1.18 %; Dow Jones Industrial: -0.95 %; DAX: -2.04 %). At approx. 2,693 basis points, the AI-INDEX continues to lead the index comparison in calendar week 43.

Development of AI stocks since 2020 in percent

Performance of AI stocks since 2020 in percent

„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.“

Jörg Bienert

AI-INDEX Portfolio

Crowdstrike
Veeva Systems
The Trade Desk
SERVICENOW
PEGASYSTEMS
Dynatrace
CADENCE DESIGN
SYNOPSYS
NICE LTD ADS
Splunk
iFlytek
Five9
CIENA CORP
XILINX
Open Text

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