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
Jul. 24, 2021 - 11:40 AM (CET)
The AI-INDEX rises rapidly at the end of week 29 (+153bp) and is now quoted at 3,297 basis points. This brings it very close to the all-time high of around 3,326bp (week 25). With a plus of 11.38 percent compared to the previous week, the US company theTradeDesk, which operates in the digital advertising segment, shows the best performance. In contrast, the leading provider of speech processing solutions - the American company Nuance Communications - shows the weakest performance with a plus of only 0.26% percent compared to the previous week. Overall, despite the rapid spread of the delta variant and a disastrous start to the week, markets and investors are showing optimism. Not least due to the positive development of the European Purchasing Managers Index, which reached its highest level in almost 21 years at 60.6 points, the DAX was able to continue its recovery course and is now trading slightly above last week's value. With an increase of 4.86 percent compared to the previous week, the AI-INDEX again shows the best performance of all indices considered (Nasdaq Composite: +1.07%, Dax: +0.15%, Dow Jones: -0.05%).
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.