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 and 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: Dynatrace, Splunk, NICE, iFlytek, DocuSign, Palantir Technologies, Veeva Systems, theTradeDesk, Crowdstrike, Cadence Design Systems, Ansys, Fortinet, Synopsys, Palo Alto Networks, Service Now.

AI-INDEX 15 compared to Dow Jones, Nasdaq Composite and Dax 40 since calendar week 1/19



AI-INDEX Development

Index development

AI-INDEX boosted by strong economic data

Aug. 08, 2022 - 06:21 AM (CET)

The AI-INDEX is rising this week (week 31) and is now trading at 2773.36 basis points with a price increase (+ 96.77 BP). With a price increase of 18.07 percent compared to the previous week, the US company theTradeDesk shows the best performance. The California-based company specializes in real-time marketing. Fortinet, on the other hand, which specializes in information security, has seen its share price fall by 12.52 percent this week, making it the weakest performer. The company is headquartered in Sunnyvale, California. The past week on the stock market was marked by the visit of top U.S. politician Nancy Pelosi in Taiwan. The prospect of further geopolitical destabilization caused sharp price losses, especially at the beginning of the week. Towards the middle of the week, however, positive U.S. economic data came to the fore. In addition, the reaction of the People's Republic of China was not as harsh as expected, which put investors in a positive mood. US tech stocks in particular benefited from this, but the Dax also recovered strongly. The oil price reached its lowest level this week since the start of the Ukraine war. The AI-INDEX increased by 3.62 percent this week (Nasdaq Composite: +2.34%; Dow Jones: +0.05%; Dax: +1.17%) and thus performed better than the indices to be compared.

Development of AI stocks in 2022 in percent

Performance of AI stocks in 2022 in percent



AI-INDEX-History


AI-INDEX Development in 2021

Index-Entwicklung

AI-INDEX ends 2021 with 3,483 basis points

Even though 2021 was marked by both ups and downs in both economic and social terms, in retrospect it was a winning year for the AI-INDEX, with solid growth in value. Starting at 3,001 basis points (2021, CW 1), the AI-INDEX was able to end the year on a high note by achieving a solid performance of over 3,483 basis points (2021, CW 52). With an annual performance of 48.68 percent, the U.S. technology company Dynatrace recorded the strongest performance in 2021. Additionally, both Xilinx (manufacturer of programmable logic circuits) and Synopsys (provider of design-for-manufacturing solutions) also showed a strong annual performance with 44.51 percent and 44.03 percent, respectively. In contrast, the U.S. cloud software company Splunk recorded the weakest annual performance with a decline of 28.87 percent. Although Splunk still had a slightly positive annual performance at the beginning of the fourth quarter, the company recorded significant declines in performance after the announcement of CEO Doug Merritt's exit (2021, week 46). Overall, the AI-INDEX increased by 482 basis points in 2021, corresponding to an annual performance of 16.08 percent (Nasdaq Composite: 20.46 %; Dow Jones Industrial: 17.26 %; DAX: 13.72 %). In calendar week 45, the AI-INDEX marked a new annual high of 3,761 basis points, which corresponded to an annual performance of 25.33% at that time. Although this peak could not be maintained until the end of the year, the index comparison in particular illustrates the lead of AI companies on the stock market due to the potential of AI-based business models: AI-INDEX: 3,483 bp; Nasdaq Composite: 2,336 bp; Dow Jones Industrial: 1,553 bp; DAX: 1,475 bp.

Development of AI-Stocks in 2021 in percent

Performance of AI-Stocks in 2021 in percent



AI-INDEX Development in 2020

Index-Entwicklung

AI-INDEX ends 2020 with over 3,000 basis points

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.

Development of AI stocks in 2020 in percent

Performance of AI stocks in 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

Ansys
Cadence Design Systems
CrowdStrike
DocuSign
Dynatrace
Fortinet
iFlytek
NICE
Palantir Technologies
Palo Alto Networks
ServiceNow
Splunk
Synopsys
theTradeDesk
Veeva Systems

Contact