industry expert : business
Exploring Investment Opportunities in AI Technology
David Rees
Artificial intelligence is part of everyday life :
• The smart speaker that knows your favorite music genre .
• The thermostat that is digitally controlled .
• And , the map apps we all use to take the fastest route to the beach .
Yet , as remarkable as these innovations are , the real revolution with generative AI is just beginning . Technology companies are innovating and providing technology solutions needed to leverage AI and make our lives and work more efficient and seamless .
As those companies grow with demand , many people are considering AI investments to their individual investment portfolios because these companies are on the frontlines of powering the growth of AI .
At Regions Bank , our team in Regions Asset Management provides clients with a comprehensive , goals-based approach to managing , protecting and growing their assets . With decades of investment experience and deep industry knowledge , we are focused on market trends and industry news that can help our clients for the long-term .
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As the world leverages generative AI across the marketplace , adding AI investments to a long-term investment portfolio plan may be an area to consider . Here are three key factors to consider before making a decision .
1 ) Growth . Has the company maintained or improved its growth rate ? Compare the past year with earnings statements from three to five years ago .
2 ) Valuation . What ’ s the company ’ s current trading price ? You may want to consider investing in a company that is undervalued so that the valuation can grow over time .
3 ) Competition . Will the company be able to maintain its market share ? Look at other companies working on similar technologies .
Most companies developing generative AI-based platforms are privately held and supported by venture capital companies . However , there are other ways that investors can have exposure to generative AI . Consider this background on the technology aspect of AI .
Publicly held companies that make complex , highly specialized electronic chips called
David Rees / 334.230.6100 / David . Rees @ regions . com
graphics processing units ( GPUs ) are playing a critical role in the flourishing of this technology . These chips are the heart and the brain of generative AI .
Despite their name , GPUs do far more than deliver graphics . These chips are capable of processing vast amounts of data — rapidly — and have other benefits that are helping drive the generative AI revolution . Most production of GPUs comes from just a few companies .
In the technology sector , another likely beneficiary of the generative AI boom are software companies that incorporate these powerful algorithms into their products . The largest software makers and sellers of software are better poised to leverage generative AI since these systems must be trained on massive amounts of data to produce accurate content . Large companies have access to large installed databases .
If you need help exploring whether an investment in AI is right for your individual investment plan , Regions Wealth Management is a resource to help .
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David Rees is a Portfolio Manager at Regions Wealth Management .
Regions Bank , member FDIC , Equal Housing Lender . This information is general education or marketing in nature and is not intended to be accounting , legal , tax , investment or financial advice . Although Regions believes this information to be accurate as of the date written , it cannot ensure that it will remain up to date . Statements of individuals are their own — not Regions ’. Consult an appropriate professional concerning your specific situation and irs . gov for current tax rules . Investing in securities involves risk , including the risk of loss . This information should not be construed as a recommendation or suggestion as to the advisability of acquiring , holding or disposing of a particular investment , nor should it be construed as a suggestion or indication that the particular investment or investment course of action described here -in is appropriate for any specific investor . In providing this communication , Regions is not undertaking to provide impartial investment advice or to give advice in a fiduciary capacity . References to a company or security or links to third-party website do not imply endorsement or recommendation . Investment Products are not FDIC insured , are not a deposit , may go down in value , are not bank guaranteed , are not insured by any government agency and are not a condition of any banking activity .
56 CentrAL Inc !