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: 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



AI-INDEX Development

Index development

AI-INDEX weakened by the downward pressure of global markets

Nov. 26, 2021 - 05:24 PM (CET)

Influenced by the major downward pressure of global markets, the AI-INDEX records a weaker performance (-121bp) and closes the week (week 47) at 3,618 basis points. With a strong performance decline of 12.4 percent compared to the previous week, California-based CrowdStrike, which operates in the field of information security and cybersecurity technology, shows the weakest performance. In contrast, Xilinx resists the downward movement of the market and records the best performance compared to the previous week with a slight performance increase of 2.3 percent. The Californian company focuses on the production of programmable logic circuits. On the global markets, the picture for the past week is rather gloomy: Despite Black Friday, for the majority of the markets, no black figures were recorded. The reason for the strong downward pressure is investors' worries about a new Corona mutant and the associated restrictions, which could have a negative impact on economic growth. The tense pandemic situation thus led to a sell-off among investors, who thus sought to minimize the risks of their portfolios. Investors' interest rate concerns also continue to remain, increasingly leading to the reallocation of high-growth tech portfolios towards value stocks. Like the general market movement of the indices considered, the AI-INDEX shows a performance decline of 3.24 percent compared to the previous week (Nasdaq Composite: -1.80%, Dow Jones: -2.07%, Dax: -4.27%). Although the AI-INDEX is thus trading at a lower level compared to the previous week, it is still the strongest performer (+20.58%) of the indices under review since the beginning of the year.

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

Cadence Design Systems
CrowdStrike
Dynatrace
Five9
iFlytek
NICE
Nuance Communications
OpenText
Palantir Technologies
ServiceNow
Splunk
Synopsys
theTradeDesk
Veeva Systems
Xilinx

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