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: Cadence Design Systems, CrowdStrike, Dynatrace, Five9, iFlytek, NICE, Nuance Communications, Open Text, 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
Oct. 15, 2021 - 07:03 PM (CET)
The AI-INDEX recorded a significant increase (+178bp) this week (week 41) and trades at 3,513 basis points at the end of the week again well above the mark of 3,500 basis points. It is thus rapidly approaching the all-time high of 3,571 basis points (week 35) again. With a double-digit performance increase of 12.4 percent compared to the previous week, the Californian company CrowdStrike, which operates in the field of information security and cybersecurity technology, shows the best performance. In contrast, Nuance Communications is the only company to record a marginal loss of 0.14 percent compared to the previous week. The French company provides intelligent speech processing solutions to business and private customers. Like the previous week, the DAX is slowly recovering from the price slump of the last few weeks and is now moving close to the 3,500 point mark again. Despite investors' continuing fears of inflation, US investors in particular are showing a strong enthusiasm for investment. Not least due to the positive U.S. labor market data and the encouraging start to the corporate reporting season, the U.S. indices increased significantly. Compared to the previous week, the AI-INDEX recorded by far the best performance of the indices under review with a significant increase of 5.35 percent (Nasdaq Composite: +1.48%, Dax: +1.97%, Dow Jones: +1.01%).