Investing in 5 Converging Technologies – A Roadmap to the Future
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Note that the following list is in alphabetical order, not in order of relevance or potential.
Whether it be silicon-based, or organoid in nature, artificial intelligence is no longer a far-fetched concept. Researchers, scientists, and developers around the world are already actively working on building solutions that may one day culminate in the first example of technology reaching the singularity – a concept popularized by renowned futurist, Ray Kurzweil.
While the singularity may still be decades away, useful AI is not. We are already seeing many professions transformed through unique uses of things like ChatGPT. In the coming years though, we can expect for the rise of neural networks capable of aiding humans in developing ancillary technologies, performing knowledge-based tasks, and more.
If all goes well, investment fund managers like ARK Invest expect big things for this sector. It states,
“The adoption of Neural Networks should prove more momentous than the introduction of the internet and create 10s of trillion dollars of value.”
In fact, ARK Invest goes beyond this prediction, indicating that it believes Neural Networks boast the most commercial potential among the majority of forward looking technologies.
Although each of the sectors listed in the above chart have huge potential, Neural Networks will act as a catalyst, helping each and every one realize it.
The following is an example of a company that has been involved in AI for years, and should continue playing a role moving forward.
International Business Machines Corporation (IBM)
Despite long-ago selling its revered ThinkPad line to Lenovo, IBM has been synonymous with personal computing for decades. The company has long since expanded in to other areas like AI, and the blockchain ecosystem. This has resulted in partnerships with companies like METACO, platforms meant to re-envision supply chain management, and more. Not only does IBM continue its own research in to AI, it also boasts solutions for companies looking to leverage the technology within their own operations.
Based out of New York, United States, IBM was originally founded in 1911 and is estimated to employ ~345,000 globally.
The push towards Electric Vehicles (EVs) has now begun in earnest, with production expected to increase 7-fold in the next 5 years. A big part of the reason for this is advancements being made in battery technology that have allowed for EVs to become realistic alternatives to their internal combustion engine (ICE) counterparts.
Beyond transportation, advancements in battery technologies have begun trickling in to residential applications as well, with companies like Tesla offerings solutions such as the ‘Powerwall‘.
If Wright's Law – which states that that the more we make of something the better we become at doing so – holds to be true, continued advancements in energy storage will not only make the world a better place, but also a more efficient one with expanding technological capabilities.
The following is an example of a company that is a major player in the manufacturing and development of energy storage solutions.
Panasonic Holdings Corp. (PCRFY)
Beyond its more public facing products like consumer electronics, Panasonic boasts various divisions that focus on the R&D and manufacturing of technologies like EV batteries. In fact, Panasonic is a major manufacturer and supplier of the battery packs used in many Tesla vehicles. A true giant, Panasonic boasted revenue of $7.39T in 2022.
Panasonic Holdings Corp. is based out of Osaka, Japan, and employs over 240,000 globally.
Technology affords us more than just amazing gadgets, computers, and robots. It is now facilitating leaps forward in certain branches of science which are geared towards understanding the human body itself, and how to care for it. As a result, by leveraging increasingly powerful computers and AI, processes like Multiomic Sequencing are plummeting in cost.
With this being the case, we are increasing our understanding of different pathologies and treatments at a pace greater than ever before. Hopefully in the near future, we will see real progress towards curing, or at least improved detection and treatment of genetic diseases.
The following is an example of a company closely involved with practices like Multiomic Sequencing.
Illumina Inc. (ILMA)
Illumina is a company which indicates that its mission is to ‘improve human health by unlocking the power of the genome'. This involves not only developing techniques for analysing genomes, but manufacturing the tools needed to do so. Notably, its efforts go beyond humans, performing genome sequencing on animals like the Koala, in an effort to conserve dwindling populations.
Between 2018 and 2022, Illumina has increased its yearly revenue from $3.33B to $4.58B. In 2023, shares in the company are up roughly 11% at time of writing.
Illumina Inc. is based our of California, United States, and employs over 11,000 employees globally.
World banks are currently in crisis-mode. In the United States alone, 2023 has brought massive failures including Silicon Valley Bank, Silvergate, Signature, and possibly more to come. As a result, many are now revisiting the idea of public blockchains underpinning the economy of the future.
Boasting verifiable scarcity and ownership, transparency, and self-sovereignty, blockchains like Bitcoin have the potential to bank the unbanked while transcending borders and political motivations.
The following is an example of a company heavily involved in advancing public blockchains and our access to them.
Block is the mother-company of Square, Cash App, TIDAL, Spiral, and TBD54566875. Of these five companies, four of them have close ties to Bitcoin, and are actively working to develop solutions for its integration in to society. Notably, Block is spearheaded by Jack Dorsey – a Bitcoin maximalist known also for founding Twitter.
Based out of California, United States, Block was originally founded in 2009 under the name Square. Across its various subsidiaries, Block currently employs ~8,500.
The future of robotics has the potential to offer huge advancements in healthcare, service industries, manufacturing, are more. Aiding our capabilities for creating next-gen robotics are other technologies like additive manufacturing (3D-printing) and AI. Between the two, engineers are able to design more advanced systems capable of far outperforming humans in many tasks.
While not a ‘robot' in the sense that most perceive the word, reusable rockets are noted by ARK Invest as being particularly important due to their role in establishing cost effective satellite arrays, ushering in new found connectivity among humans.
The following is an example of a company helping to move forward robotics through additive manufacturing.
Stratasys, Ltd (SSYS)
This company is a leader in the additive manufacturing sector. Through its line of 3D printers and services, the company boasts solutions targeted towards a variety of fields, including aerospace, dental, automotive, and more.
Stratasys is headquartered in Minnesota, United States. In 2021, the company boasted a revenue of $606.3M
The bottom line is that time moves quickly. While it may be easier to hunker down and ignore the future and concentrate on current world issues, this would be doing ones future self a disservice.
By recognizing, and gaining exposure to the converging technologies listed above, investors can take a step towards preventing future macro-economic stressors from putting a damper on any potential returns. After all, an ounce of prevention is worth a pound of cure.