Artificial Intelligence is driving an unprecedented expansion in the potential market size for hardware and software products. According to Bain & Company, the market for AI-related hardware and software will witness annual growth rates of 40% to 55% over the next three years, potentially reaching a valuation between $780 billion and $990 billion by 2027. Companies investing in artificial intelligence know exactly how big of an opportunity this is and are determined not to miss it. Keshav Murugesh, Group CEO of WNS, a global business process management company, talked about its significance at the “CNBC Connect” event in Bangkok. According to Murugesh, many companies are underprepared for AI’s impact, particularly in areas such as government regulation. As such, there is clearly an upside to investing early in the technology.
“Three years from now, if you are investing significantly in generative AI, you might be disappointed, right? As we have seen in many technologies, sometimes the hype is much bigger than the reality. But, three years from now if you are not investing in generative AI, you are going to be terrified. Because those companies that made the investments now, will be far ahead of you”.
– Keshav Murugesh.
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Latest Developments in AI
Let’s look at the latest developments in artificial intelligence to assess how they are helping businesses, customers, and society to reach the next level of success. In its first, Chinese scientists have developed the first AI-powered robot lifeguard to stand watch over the riverside site in Luohe city. Using artificial intelligence, big data, and navigation and tracking technologies, the robot will operate without any human intervention. While it is not the first robot lifeguard, it is the first to be fully automated and needs no intervention, South China Morning Post reported.
In other news, Japanese Prime Minister Shigeru Ishiba has pledged more than $65 billion of fresh support for the nation’s semiconductor and artificial intelligence sector. The move comes in hopes of narrowing the gap between Tokyo and global powers on chip support. Ishiba notes that he wishes to spread positive examples of regional revitalization like TSMC’s chip plant in Kumamoto across the nation.
Speaking of artificial intelligence, it seems that artificial intelligence companies are no longer scaling at the pace they were initially and that the outcomes from scaling up pre-training—the stage in AI model training where large volumes of unlabeled data are used to learn language patterns and structures—have seemingly reached a plateau. To overcome this plateau, researchers are now exploring “test-time compute,” a technique that enhances existing AI models during the so-called “inference” phase, or when the model is being used. This shift has the potential to reshape the AI landscape and impact the demand for hardware, challenging Nvidia’s dominance in training chips as the focus moves to the inference market.
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15. Spectral AI, Inc. (NASDAQ:MDAI)
Market Capitalization: $25.65 million
Spectral AI, Inc. (NASDAQ:MDAI) is an artificial intelligence company focused on medical diagnostics for faster and more accurate treatment decisions in wound care.
On November 7, H.C. Wainwright maintained a “Buy” rating on Spectral AI, Inc. (NASDAQ:MDAI) with a price target of $3.50. The buy rating comes amid Spectral AI’s strong financial performance and strategic positioning. It surpassed revenue forecasts for Q3 2024, reporting $8.2 million compared to the expected $7.1 million. Regulatory and commercial milestones have also led to the rating upgrade, and the company is scheduled to report its data on the US Burn Study by the year’s end, an important step for getting FDA approval for its DeepView system. The DeepView is an AI-driven non-invasive and predictive medical device that will provide clinicians with an immediate, binary assessment of a burn wound’s healing potential. The favorable feedback from the UK launch and funding from the Medical Technology Enterprise Consortium further affirm the buy rating.
14. Bloom Energy Corporation (NYSE:BE)
Market Capitalization: $3.1 billion
Bloom Energy Corporation (NYSE:BE) is a renewable energy company that designs, manufactures, sells, and installs solid-oxide fuel cell systems for on-site power generation. Bloom Energy is an AI stock given its potential to power AI data centers.
On November 7, Bloom Energy Corporation (NYSE:BE) and Quanta Computer Inc., a Taiwanese electronics manufacturer, announced a significant expansion to their existing agreement to power the production of critical hardware serving the AI industry. Under the agreement, Quanta has expanded its Bloom Energy SOFC (solid oxide fuel cell) microgrid installation, increasing its power capacity by over 150%. This will help the company avoid expensive delays with local utility connections and keep up with the growing demand for its servers.
“Bloom’s SOFC microgrids provide AI customers with a flexible, pay-as-you-grow solution that is ready to scale and avoids additional transmission or distribution upgrades. This effectively shortens interconnection permitting associated with traditional infrastructures”.
– Aman Joshi, Bloom Energy’s global Chief Commercial Officer.