The AI subgenre that has generated interest in this revolutionary technology is relational artificial intelligence. However, savvy stakeholders are cognizant of the rapid evolution in the AI landscape and are pondering, “What comes next?”
The demand for cutting-edge AI advancements may be driven by AI’s increasing integration into customer services as a potential solution. This trend could act as a catalyst for Exchange-Traded Funds (ETFs) like the Invesco NASDAQ 100 ETC (QQQM) and the IQQ Trust (QuQuQ).
The term “edge” refers to hardware situated at the periphery of systems. This holds significance for investors contemplating QQQ and QRQM due to the multitude of tech companies featured in the ETFs’ portfolios. This factor further solidifies the Invesco ETFs’ position as attractive options for investors seeking exposure to AI while mitigating some of the risks associated with thematic approaches.
Artificial Intelligence Drives Progress in Edge Hardware
The anticipated surge in edge devices, coupled with AI and other catalysts, is a development that cannot be overlooked.
According to the US research firm Gartner, by 2025, half of business data will be generated by billions of battery-powered devices at the edge. Ed Stanley, the Head of Thematic Research at Morgan Stanley in Europe, highlights that Edge computing enables AI processing with reduced costs, enhanced personalization, and crucially, heightened security and privacy compared to centralized cloud computing.
The significant cost implications of edge technology underscore the potential appeal of QqQ and QQQM as players in edge technology advancement. Stanley suggests that this could lay the groundwork for over 30 billion devices in the near future.
The escalating technological requirements, such as enhanced battery longevity, reduced power consumption, and advanced computational capabilities, are poised to drive the demand for cutting-edge components. Some organizations featured in QqQ and QQM are already spearheading advancements in these areas. While the spotlight on Edge AI as an investment theme is currently subdued, this narrative could swiftly change, potentially benefiting the Invesco ETFs in the long haul.
Furthermore, a wave of upcoming product launches as early as Q1 2024, including edge AI-enabled smartphones equipped with customized silicon, is expected to capture investors’ attention in the next 12 months, as per Stanley. Smartphones are believed to hold the greatest potential for addressing edge computing challenges promptly, boasting the highest short- and medium-term addressable market. This discreet trend is poised to take center stage in 2024.
