Can’t-Miss 2020 Investment: The Edge AI Chips Explosion
- AI chips just got a huge upgrade, and it will usher in the next generation of Internet of Things technologies.
- More than 750 million will be sold, generating $2.6 billion in revenue in 2020 making it THE investment for massive upside.
- One way to buy into the companies leading the charge today.
There’s a secret boom happening in the chip industry.
A new generation of microprocessors — also known as artificial intelligence (AI) chips — are about to take the technological world by storm.
These AI chips are like no other.
And in some cases, it could mean the difference between life or death.
For example, a connected self-driving vehicle needs data transmitted through its system instantaneously and in real time as it drives down the road to function at its optimum level.
If the processed data is initially transmitted through cloud servers and then transmitted back to the vehicle, too much time is spent on that one transmission.
Vital seconds are lost.
But with new AI chips, the necessary data is within the vehicle itself.
No time is wasted waiting on data to tell your car to brake or turn.
The chips are fast, powerful and extremely intelligent. They will be at the heart of the Internet of Things (IoT).
These chips live on the edge … literally.
I’m speaking of edge AI chips.
The capabilities of these new AI chips are nearly immeasurable. And 2020 is poised to be the year they will make their presence known throughout the technology sector. It could be recognized as the smarter 2020 investment opportunity.
Get Ready for the Edge AI Chip Explosion
Since the 1950s, and since the first silicon computer chip was invented in 1961, chips have continuously evolved and improved exponentially over the last 58 years.
Used to power electronic devices such as our personal computers, chips can process complex math equations, store massive amounts of memory, and even make decisions and create instructions based on data inputs.
Chips have drastically changed how the technological world functions across every industry.
Now, these edge AI chips will take the technology to the next level.
Edge AI chips help devices function just outside of a computer network or data center.
They will revolutionize self-driving vehicles, high-end 5G smartphones, next-generation wearables, tablets, smart homes, smart speakers, facial recognition software, augmented/virtual reality and industrial robotics.
Unlike cloud-based technologies, edge AI chip-enabled devices are very close at hand.
CB Insights put it this way:
Edge computing enables connected devices to process data closer to where it is created — or the “edge.” This can be either within the device itself (i.e. sensors), or close to the device, and provides an alternative to sending data to a centralized cloud for processing. Some of the biggest players in tech — including Amazon, Microsoft, and Google — are exploring edge computing, potentially giving rise to the next big computing race.
Per Deloitte Insights, more than 750 million edge AI chips will be sold in 2020, generating $2.6 billion in revenue. This is 150% more than the 300 million sold in 2017, a three-year compound annual growth rate (CAGR) of 36%.
Deloitte Insights also predicts the edge AI chip market will grow more quickly than the general chip market, making it THE 2020 investment opportunity.
In all, it forecasts that the consumer market within the edge AI chip market is projected to grow at a CAGR of 18% from 2020 and 2024. And the enterprise (large business) edge AI chip market is predicted to have a CAGR of 50% over the same time frame.
How to Benefit From the Edge AI Chip Market’s Growth in 2020 and Beyond
To play this great innovation opportunity, consider investing in the ARK Autonomous Technology & Robotics ETF (NYSE: ARKQ).
This exchange-traded fund (ETF) includes leading companies in edge AI chip manufacturing.
Year to date, the total return for this industrial innovation ETF is nearly 24%.
Edge AI chips are not only the heart, but also the brain, of the next generation of IoT technologies.
2020 is the beginning of this new era of technological innovation.
Don’t be left on the sidelines. Find the 2020 investment opportunity that could be your ticket.
Until next time,
Director of Investment Research, Banyan Hill Publishing
I’ve been investing for more than 25 years. I started my career on Wall Street in 1991 as an assistant portfolio manager at Bankers Trust. I quickly advanced to prominent positions at Deutsche Bank and ING, managing multimillion-dollar accounts. In 2006, the owners of a $6 billion firm named Kinetics Asset Management recruited me to manage their hedge fund.