Generative AI ETF WISE: A Brilliant December with Solid Returns

Eulerpool Research Systems Dec 27, 2024

Takeaways NEW

  • Generative AI markets are expected to grow to 1.3 trillion USD by 2032.
  • The WISE ETF in the field of generative AI gained 17.6% in value in December.
The Generative Artificial Intelligence ETF WISE gained a remarkable 17.6% in value in December, making it the best-performing ETF of the month. This ETF provides investors with access to the most promising tech stocks in the field of generative artificial intelligence. Within the WISE portfolio, some stocks even recorded gains of more than 30%. The standout performers include SoundHound, BigBear.ai, Broadcom, Tesla, and QuickLogic Corporation. The AI boom seems unbroken as we look towards 2025. The rapid expansion of AI applications promises new growth opportunities in the technology sector and beyond. According to a recent report from Bloomberg Intelligence, the market for generative AI is expected to expand over the next ten years with an average annual growth rate of 42% to $1.3 trillion, up from a market volume of just $40 billion in 2022. The accelerated adoption of AI in various industries is progressing at an unprecedented pace. In industries such as healthcare, retail, and manufacturing, AI is increasingly employed to optimize processes, improve decision-making, and enhance customer experiences. Particularly in healthcare, the use of AI-powered diagnostic tools is expected to lower costs and improve patient outcomes, while retailers are leveraging AI for hyper-personalized advertising and inventory management. Generative AI models such as OpenAI's GPT and DALL-E have already proven their capabilities and will be integrated more deeply into creative industries, product design, and even programming by 2025 to drive productivity and innovation. Governments worldwide are increasing their investments in AI research and development. China and the USA are leading in this area, with significant resources allocated to maintaining their competitive advantages. On the corporate side, companies such as NVIDIA, Alphabet, and Microsoft are continuously investing billions in AI, signaling confidence in its long-term potential. The market for AI hardware, particularly semiconductor chips designed for AI tasks, is set for strong growth. As companies like NVIDIA dominate the market, investors closely watch developments in AI chip innovation, which underpins progress in machine learning and neural networks.

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