The financial landscape is poised for a significant transformation with the advancement of artificial intelligence (AI), as estimated by Tasha Keeney, an analyst at Ark Invest, forecasting a lucrative $28 trillion opportunity. Keeney has pinpointed key sectors poised for growth, including Tesla Inc (TSLA) and drone technology.
In recent developments, Keeney, the director of investment analysis and institutional strategies at Ark Invest, has projected a substantial surge in equity market capitalization tied to innovation, reaching a staggering $220 trillion by the decade’s end, primarily fueled by AI, as reported by CNBC.
Ark Invest, renowned for its emphasis on innovation, holds investments across diverse sectors such as autonomous vehicles, drones, robotics, energy storage, 3D printing, and space exploration through its Ark Autonomous Tech & Robotics ETF (ARKQ).
Keeney emphasized the increasing presence of autonomous vehicles in major cities globally, foreseeing significant scalability in the next decade. She anticipates this opportunity alone could amount to $28 trillion in enterprise value due to its disruptive nature. Particularly, she highlighted Tesla’s pioneering role in self-driving technology advancements.
Despite a slight 1.8% decline in Tesla’s shares over the past year, Ark Invest has set a target price of \(200 for the stock, currently trading around \)178. Keeney also underscored the growing significance of drone technology, not limited to the military but extending across various industries.
This narrative unfolds amidst Ark Invest’s recent divestment from Nvidia shares due to valuation concerns. However, the firm continues to invest in key suppliers of the chipmaker, such as Taiwan Semiconductor Manufacturing Company Ltd. (TSM).
Ark Invest’s optimistic stance on AI and other transformative technologies aligns with its predictions of accelerated U.S. economic growth, with Chief Futurist Brett Winton forecasting a robust 7% annual real GDP growth on average in the present business cycle.
Despite the sale of Nvidia shares, Ark Invest’s early recognition of AI’s growth potential for Nvidia has been acknowledged. Nevertheless, the firm’s premature departure from the position has led to a missed opportunity for the flagship Ark Innovation ETF.
This content was Engineered by Benzinga Neuro and Edited by Kaustubh Bagalkote.
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