Invest in 60's | Long-term investment themes to consider - EV and AI
In today's ever-evolving investment landscape, it's crucial to keep an eye on emerging trends and industries with the potential for substantial long-term growth. Two such areas that have been making waves in recent years are Electric Vehicles (EVs) and Artificial Intelligence (AI).
Let's take a closer look:
Electric vehicles (EVs): A charge towards the future
Australia's EV market has recently achieved a significant milestone, with a 10% penetration rate. However, this is just the beginning when compared to the ambitious targets set by other global players. The United States, China, and the European Union are all on track to achieve a remarkable 60% penetration rate by 2030.
Moreover, countries like Denmark, the Netherlands, the UK, and New Zealand have set stringent goals to ban new fuel-powered cars by 2030. Australia's capital territory, the ACT, aims to follow suit by 2035. This shift towards EV adoption is not only environmentally driven but also a catalyst for robust sales and earnings growth in the EV manufacturing industry.
To capitalize on this trend, consider investing in companies like Tesla ($TSLA), BYD ($BYD), or Volkswagen ($VLKAF), known for their strong EV sales and innovations. Alternatively, consider diversifying your portfolio by exploring exchange-traded funds (ETFs) such as $DRIV, which focuses on the EV industry as a whole.
AI and chips: The brains behind tomorrow's innovations
Artificial Intelligence (AI) and advanced semiconductor chips are at the forefront of technological advancement. Generative AI spending is expected to grow at a staggering 42% annually over the next decade.
Additionally, AI-driven advertising spending and AI-based services are projected to experience over 100% revenue growth, fueling innovation and earnings in major tech companies.
For those looking to invest in this tech revolution, companies like Microsoft ($MSFT), GOOGLE($GOOG), and Nvidia ($NVDA) stand out as leaders in AI and semiconductor technology. These giants are well-positioned to capitalize on the growing demand for AI-powered solutions and hardware.
If you prefer a more diversified approach, consider investing in ETFs like $AIQ, which provide exposure to a range of companies contributing to the AI and chip sectors.