What is the Next Big Thing in Artificial Intelligence?
We take a look at the artificial intelligence sector this week. We've got three candidates who are all taking a different approach to this technology. Investors don't seem to be excited about any of them right now. But two of them announce earnings this week, so we're sure to see some price movement over the next five days...
This week we’re looking at the artificial intelligence sector. It’s a broad sector that includes technologies in every sector. And over the last month, investors haven’t been impressed.
We took a look at the Global X Robotics & Artificial Intelligence Thematic ETF (BOTZ). This ETF has net assets of just over $2 billion and is a good overview of the robotics, artificial intelligence and automation landscape. The last month doesn’t look great. All of the gains seen in June are gone.
We wonder what investors are looking for. This industry isn’t going anywhere anytime soon. Maybe nobody really expects anything from these upcoming earnings. We’ve got two of our three candidates announcing earnings this week. So, we’ll have to see if that sentiment is proven or disproven.
Let’s check in with our candidates for the week…
First up, we’ve got CEVA, Inc (CEVA). CEVA has its hands in many areas of the technology and artificial intelligence. The company is the leading licensor of signal processing, sensor fusion and AI processors. Its overall goal is to contribute to a smarter more connected world.
By partnering with semiconductor companies, CEVA works to create power-efficient, intelligent and connected devices for a range of markets. The company has its hands in mobile, consumer, automotive, robotics, industrial and Internet of Things. Its customers are household names: LG, Nokia, Sony, Yamaha, FujiFilm and 370 others.
CEVA divides its applications into 6 categories. First off it has a collection of 5G mobile and infrastructure processors. No matter which companies launch 5G first, these processors are going to be needed. Second it has AI & deep learning which works to harness neural networks to accelerate machine learning. Third, the company has is imaging and computer vison processing. These processors are for outstanding image quality and intelligent vison processing.
Next, the company has its Wireless Internet of Things platforms and processors. This is for reliable connectivity via Bluetooth, wi-fi and NB-IOT. These technologies can be used in automotive and wearable among many other things. Then, the company has audio, voice and speech platforms and processors. This includes audio, voice, and speech sensing. Automatic speech recognition and interfaces are pertinent to the advanced in technology. Finally, the company has the sensor fusion sector. This provides solutions for augmented and virtual reality, robotics and motion controllers.
As you can see, if it requires a processor, CEVA has its hands in it. That’s the kind of company that will keep making money, no matter where technology heads.
Last week shares opened at $27.63 and closed on Friday at $26.60. The company will be announcing second quarter earnings on Thursday, so that wasn’t the cause or the drop…or was it? Since the earnings release is next week, it’s time for analysts to start speculating.
Right not, analysts expect a year-over-year decline in earnings with lower revenues. So already investors are ready to sell before the earnings release. When we check in on Wednesday, it will still be before the earnings release. So, we’ll be able to see if investors are getting more or less optimistic leading up to the release.
Next up, we’ve got Foresight Autonomous Holdings Ltd. (FRSX). Foresight Autonomous Holdings is a technology company behind the design, development and commercialization of stereo/quad camera vison systems and V2X cellular-based solutions for the automotive industry.
It uses proprietary stereoscopic technology derived from field-proven technology used for almost two decades. The company’s patented technology also incorporates 3D video analysis, advanced algorithms for image processing and sensor fusion.
This camera technology takes into account visible light conditions and weather conditions to provide a complete 3D image of the driving environment. This creates a solution to foresee possible collisions with vehicles, pedestrians, cyclists and other obstacles in real time with minimum false alerts.
At the end of July, the company announced an additional sale of its Quadsight four camera system. This system is targets for the semi-autonomous and autonomous vehicle market. There’s no doubt that this is the direction that the automotive market is heading. And it doesn’t matter which automotive company beats the rest. All of them will eventually head in that direction. And this technology will be needed. By selling additional prototypes, Foresight is increasing awareness of its unique solutions for this industry.
Last week shares opened at $1.80 and closed on Friday at $1.74. The company should release its next earnings over the next few weeks.
Finally, we’ve got Materialise NV (MTLS). Materialise is not a new name to our Alpha contest. The company was founded in 1990 with the goal to enable new uses for the extraordinary potential that 3D printing offers. It does this by combining the largest group of software developers in the industry with one of the largest 3D printing facilities in the world.
You read that right; this 3D printing company was founded in 1990 when Wilfried Vancraen saw the potential of a new technology he has just seen at a research facility in Germany. By 1992, he was applying his background in biomechanics to create software to allow for the creation of anatomical models using CT image data.
Now the company has expanded into many other areas or expertise. Using 3D printing, Materialise produces lightweight and cost-effective components for the aerospace, aeronautics and automotive. The company also uses Materialise to create precisely calculate and scalable components for architecture, art and fashion. Its technology is also being applied to custom eyewear.
It really has the mentality that anything and everything can be made better by 3D printing. Just last week, Materialise signed an agreement to acquire a 75% stake in Engimplan Holding to expand its reach in the fast-growing Brazilian market.
Last week shares opened at $20.05 and closed on Friday at $18.97. The company is planning to release its earnings tomorrow and right now analysts are not sure that the numbers are going to beat expectations. We’ll break them down when we check in with you on Wednesday to see all the details.