As
the
buzz
around
artificial
intelligence
continues
to
build,
investors
are
looking
to
identify
the
sectors
best
placed
to
benefit.
Ark
Invest’s
Tasha
Keeney
is
no
different.
Keeney,
director
of
investment
analysis
and
institutional
strategies
at
the
asset
manager,
estimates
that
the
equity
market
capitalization
attributable
to
innovation
will
jump
to
$220
trillion
by
the
end
of
the
decade,
from
the
$15
trillion-$20
trillion
it
is
at
right
now.
“Most
of
that
…
we
expect
is
actually
attributable
to
AI,”
she
said.
Ark
Invest
—
which
has
a
particular
focus
on
innovation
—
is
invested
in
segments
including
autonomous
vehicles,
drones
and
robotics,
energy
storage,
3D
printing,
and
space
exploration
through
its
Ark
Autonomous
Tech
&
Robotics
ETF
(ticker
ARKQ).
After
a
bumper
2020
following
the
pandemic,
the
fund
has
struggled
and
is
currently
down
around
3.7%
year-to-date.
Autonomous
cars:
A
$28
trillion
opportunity
Autonomous
cars
is
one
area
related
to
AI
that
Keeney
is
“particularly
excited
about.”
“Autonomous
cars
are
already
driving
in
major
cities
today
across
the
globe.
We
think
that
in
the
next
10
years,
that
will
scale
up.
I
think
that
opportunity
alone
could
be
worth
$28
trillion
in
enterprise
value
because
this
will
be
very
disruptive,”
she
told
CNBC’s
“Street
Signs
Asia”
on
Mar.
8.
A
company
that
stands
out
to
her
is
Tesla
—
also
a
long-time
favorite
stock
of
Ark
Invest’s
Cathie
Wood
.
Naming
it
as
a
leader
in
the
industry,
Keeney
pointed
to
“incremental
progress
on
their
self-driving
technology”
as
one
of
the
company’s
merits.
“Sure,
it’s
not
perfect
yet,
it
still
messes
up
in
specific
scenarios.
But
what
we’re
relying
on
here
is
the
data
advantage
that
Tesla
[has
and]
that’s
very
important
in
AI
in
general,”
she
said.
Shares
in
Tesla
are
down
around
1.8%
over
the
past
12
months.
Ark
Invest
has
a
target
price
of
$200
on
the
stock,
but
Keeney
said
this
is
in
the
process
of
being
updated.
Tesla
was
trading
around
$178
on
Friday.
A
number
of
analysts
are
now
cautious
on
the
stock.
According
to
Factset
data,
of
49
analysts
covering
it,
23
have
hold
ratings,
18
give
it
a
buy
or
overweight
rating,
and
8
have
a
sell
or
underweight
rating.
Their
average
price
target
is
$210.65.
Autonomous
drones:
A
‘very
hot
topic’
Beyond
automakers,
Keeney
is
looking
to
ride
the
autonomy
wave
through
opportunities
in
drones.
“These
days,
it’s
a
very
hot
topic,
because
…
we’re
seeing
conflict
increase
globally,”
she
said,
naming
Kratos
Defense
and
Security
Solutions
and
AeroVironment
as
two
stocks
on
her
radar
thanks
to
their
lower
cost
and
more
affordable
drone
platforms.
Kratos
makes
defense
technology
such
as
jet-powered
drone
systems,
while
AeroVironment
makes
munitions,
drones
and
has
“long
been
a
leader”
in
surveillance
technology,
according
to
Keeney.
Keeney
emphasized
that
drone
technology
can
transcend
military
use
cases
and
be
applied
across
industries.
For
instance,
supermarket
chain
Walmart
has
partnered
with
drone
delivery
players
Wing
—
backed
by
Google
parent
Alphabet
—
and
Zipline
to
deliver
food
to
consumers.
“Ultimately
…
it
brings
down
costs
for
the
end
consumer,”
she
said.
