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ASX AI Stocks: 5 Biggest Companies in 2024

2 years 6 months ago
Artificial intelligence (AI) continues to evolve and advance rapidly, becoming increasingly integrated in the automation of everyday life and a focal point of growth in the technology sector.AI is also becoming a major focus for the Australian government, whose budget for the 2023/2024 fiscal year outlines a plan to invest AU$101.2 million in AI development and adoption over the coming years. That includes AU$17 million announced in December 2023 to fund up to five AI Adopt Centres for small- and medium-sized businesses.According to a September 2023 report from IDC on worldwide AI spending, Australia, along with Korea and India, is leading the Asia-Pacific region in spending on AI solutions; the three countries are also leading when it comes to AI adoption in the area. Spending in the region, excluding Japan and China, is expected to reach US$28.2 billion by 2027. Although the AI market is relatively small in Australia, it’s growing. To help investors understand the options available, the Investing News Network used TradingView's stock screener to find the top AI stocks on ASX by market cap. All ASX AI stocks data was current as of March 26, 2024; companies whose business is focused mainly on AI were considered. 1. NextDC (ASX:NXT) {"@context":"http://schema.org","@type":"Corporation","name":"NEXTDC FPO [NXT]","url":"https://investingnews.com/stocks/asx-nxt/nextdc-fpo-nxt/","description":"NextDC operates 11 data centres across five major Australian cities with a focus on colocation of and interconnection between enterprises, global cloud, and ICT providers and telecommunication...","tickerSymbol":"ASX:NXT","sameAs":[],"image":"https://investingnews.com/media-library/image.jpg?id=51432387&width=980","logo":"https://investingnews.com/media-library/image.jpg?id=51432387&width=210"} Company Profile Market cap: AU$9.25 billion; current share price: AU$17.81NextDC is Australia’s leading data centre operator, with 13 functioning centres throughout Australia, New Zealand, Malaysia and Japan, and nine more currently in the works. NextDC has expressed its commitment to improving Australia’s digital infrastructure with multiple business and academic partnerships.This past August, NextDC announced it would be partnering with Microsoft (NASDAQ:MSFT), as well as well-known Australian mining and telecommunications groups, to bring a state-of-the-art data centre to Pilbara, Western Australia. Then, in November 2023, the company officially broke ground on an AU$80 million data centre in Darwin as part of an action plan to improve the digital infrastructure in the Northern Territory.NextDC also revealed last September that it would be partnering with La Trobe Business School’s Research Centre for Data Analytics and Cognition on research into future theoretical and practical applications of AI across a range of industries. Buy now , 2. BrainChip (ASX:BRN) {"@context":"http://schema.org","@type":"Corporation","name":"BRAINCHIP FPO [BRN]","url":"https://www.brainchipinc.com","description":"BrainChip Holdings Ltd is engaged in neuromorphic computing. Neuromorphic computing is a branch of artificial intelligence (AI) that simulates the functionality of the human neuron. The company has developed a revolutionary spiking neural network (SNN) technology, a type of neuromorphic computing that learns autonomously, evolves, and associates information just like the human brain. It operates through one segment namely, the technological development of designs. The company's products include Akida IP, Meta TF, Akida1000, and others.","tickerSymbol":null,"sameAs":[],"image":"https://investingnews.com/media-library/image.gif?id=33033200&width=980","logo":"https://investingnews.com/media-library/image.gif?id=33033200&width=210"} Company Profile Market cap: AU$588.8 million; current share price: AU$0.33BrainChip is the company behind akida, a revolutionary digital neuromorphic chip that’s built with a spiking neural network, a type of artificial network that mimics the way messages are passed between neurons in the human brain. Because the AI is inside the chip, the chip is able to learn on its own and is not reliant on the cloud or other networks. This makes it much more secure and reduces latency as well. Buy now , 3. Appen (ASX:APX) {"@context":"http://schema.org","@type":"Corporation","name":"APPEN FPO [APX]","url":"https://investingnews.com/stocks/asx-apx/appen-fpo-apx/","description":"Appen Ltd is engaged in the provision of quality data solutions and services for machine learning and artificial intelligence applications for technology companies, auto manufacturers and government...","tickerSymbol":"ASX:APX","sameAs":[],"image":"https://investingnews.com/media-library/image.jpg?id=51431943&width=980","logo":"https://investingnews.com/media-library/image.jpg?id=51431943&width=210"} Company Profile Market cap: AU$138.57 million; current share price: AU$0.60Appen began in 1996 as an automated speech recognition startup by a couple based in Sydney, New South Wales. Today, the company operates as a trusted partner to firms transitioning to AI usage, with a suite of industry-specific large language models and AI-training products. Buy now , 4. Bigtincan Holdings (ASX:BTH) {"@context":"http://schema.org","@type":"Corporation","name":"BIGTINCAN FPO [BTH]","url":"https://www.bigtincan.com","description":"Bigtincan Holdings Ltd is a provider of enterprise mobility software, which enables sales and service organisations to increase sales and improve customer satisfaction through improved mobile worker...","tickerSymbol":"ASX:BTH","sameAs":[],"image":"https://investingnews.com/media-library/image.jpg?id=51431935&width=980","logo":"https://investingnews.com/media-library/image.jpg?id=51431935&width=210"} Company Profile Market cap: AU$92.44 million; current share price: AU$0.15Bigtincan Holdings is a sales platform that uses AI to help companies improve their customers’ buying experience by making the process more efficient and personalised. Bigtincan’s list of partners includes Apple (NASDAQ:AAPL), Adobe (NASDAQ:ADBE), SalesForce (NYSE:CRM) and Microsoft (NASDAQ:MSFT). Buy now , 5. Ai-Media Technologies (ASX:AIM) {"@context":"http://schema.org","@type":"Corporation","name":"Ai-Media Technologies","url":"https://investingnews.com/stocks/asx-aim/ai-media-technologies/","description":"Ai-Media Technologies Ltd is a provider of live and recorded captioning, transcription, subtitles, translation, and speech analytics using a proprietary, cloud-based technology platform.","tickerSymbol":"ASX:AIM","sameAs":[],"image":"https://investingnews.com/media-library/image.jpg?id=51431947&width=980","logo":"https://investingnews.com/media-library/image.jpg?id=51431947&width=210"} Company Profile Market cap: AU$77.26 million; current share price: AU$0.37Ai-Media Technologies is one of the world’s leading caption and translation providers. It was founded in 2003 by Tony Abrahams and Alex Jones, who was born deaf. Ai-Media uses AI to transcribe speech, making media accessible to all. Buy now , FAQs for investing in AI What is artificial intelligence? AI is defined as human intelligence exhibited by machines. The development of graphics processing units with faster and more powerful chips has supported the emergence of AI technologies. Where is AI used? AI has been heralded as a technology of the fourth industrial revolution, with heavy investment from industries including transportation, manufacturing, education and agriculture. Some of the sectors that will likely see the fastest AI investment growth in the coming years are healthcare, pharmaceutical research, retail, industrial automation, finance and intelligent process automation. How to invest in AI stocks? Investors looking to capitalise on AI's growth potential have a number of entry points when it comes to stocks. It's key for each person to practise due diligence and speak to their broker to determine the most suitable investments. The companies listed above have a strong focus on AI, but investing in companies that are using AI as part of a larger business model is one way to gain indirect exposure to the sector. Examples of stocks like this on the ASX include Block (ASX:SQ2), WiseTech Global (ASX:WTC), Seek (ASX:SEK) and Xero (ASX:XRO).For a more diversified approach, the Betashares Global Robotics and Artificial Intelligence ETF (ASX:RBTZ) invests in companies involved in the development of AI applications all across the globe. Investing in an exchange-traded fund is a low-cost way to benefit from a sector without directly buying individual stocks. This is an updated version of an article first published by the Investing News Network in 2020. Don’t forget to follow us @INN_Australia for real-time updates! Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
Investing News Network

US to Invest Over US$6 Billion in Clean Energy Initiatives

2 years 6 months ago
Over the last week, the US government has unveiled significant investments in clean energy and carbon-reduction initiatives that it believes will be pivotal steps toward a more sustainable future. Two key announcements, spearheaded by the Biden-Harris administration and facilitated by the Department of Energy (DOE), are poised to reshape both the industrial sector and mining communities across the nation.The first announcement, a commitment of up to US$6 billion, is set to cover 33 projects spanning over 20 states. This investment aims to decarbonize energy-intensive industries, including aluminum, cement, chemicals, iron and steel.“The industrial sector contributes nearly one-third of the nation’s overall greenhouse gas emissions,” a statement reads, emphasizing that the highest-emitting industries are being targeted. “This transformative federal investment is matched by the selected projects to leverage more than US$20 billion in total to demonstrate commercial-scale decarbonization solutions needed to move the industrial sector toward net-zero emissions.The funds will be sourced from the Inflation Reduction Act and the Bipartisan Infrastructure Law, which was introduced in 2021 to address gaps in urban and rural development frontiers. The investment is a testament to the administration's dedication to revitalizing manufacturing communities, creating high-quality jobs and combating climate change.The second announcement allocates up to US$475 million to move forward at five clean energy projects located in current and former mining communities in Arizona, Kentucky, Nevada, Pennsylvania and West Virginia.The technologies deployed will range from solar and micro-grids to pumped storage hydropower, fostering economic growth and environmental stewardship in traditionally underserved mining communities.“President Biden believes that the communities that have powered our nation for the past 100 years should power our nation for the next 100 years,” said US Secretary of Energy Jennifer M. Granholm. “Thanks to the President’s Investing in America agenda, DOE is helping deploy clean energy solutions on current and former mine land across the country—supporting jobs and economic development in the areas hit hardest by our evolving energy landscape.”The overarching goal of these investments is twofold: to slash greenhouse gas emissions, as well as strengthen domestic manufacturing while fostering equitable economic development. Together, these initiatives are poised to significantly reduce carbon emissions, targeting a reduction of over 14 million metric tons of carbon dioxide annually.Putting it into perspective, this is equivalent to the net emissions produced by 3 million gasoline-powered cars in a year. By prioritizing the decarbonization of high-emitting industries and promoting clean energy projects on mine lands, the administration is also seeking to create a more resilient and inclusive energy landscape.Don't forget to follow us @INN_Resource for real-time updates!Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Investing News Network

Pharma Stocks: 5 Biggest Companies in 2024

2 years 6 months ago
The pharmaceutical industry is a major player in the overall life science sector, responsible for developing and manufacturing the majority of prescription drugs. Companies in this space are constantly researching and creating innovative treatments for various medical conditions. In recent years, there has been a particular focus on developing new treatments for diabetes, weight loss and cancer. With the pharmaceutical sector projected to reach a staggering US$1.6 trillion in total revenue by 2028, there is an opportunity for investors to gain exposure to the growth potential of this industry while also benefiting from the diversification and stability provided by established companies. With that in mind, the Investing News Network has compiled a list of the five biggest drug companies by market cap. Data for this article was compiled using TradingView's stock screener on March 25, 2024. 1. Eli Lilly and Company (NYSE:LLY) {"@context":"https://schema.org","@type":"Corporation","name":"Eli Lilly and Company","url":"https://www.lilly.com","description":"Eli Lilly is a drug firm with a focus on neuroscience, endocrinology, cancer, and immunology. Lilly's key products include Verzenio for cancer; Mounjaro, Jardiance, Trulicity, Humalog, and Humulin for diabetes; and Taltz and Olumiant for immunology.","tickerSymbol":"NYSE:LLY:US","sameAs":[],"image":"https://investingnews.com/media-library/image.gif?id=32908904&width=980","logo":"https://investingnews.com/media-library/image.gif?id=32908904&width=210"} Company Profile Market cap: US$733.89 billionFounded in 1876, Eli Lilly and Company employs approximately 10,000 individuals for research and development in seven countries and has products marketed in 110 countries, including therapies for diabetes, cancer, immune system diseases and a wide range of mental health conditions. The company also has drugs in development for various medical conditions, such as skin ailments, cancers, Crohn's disease, diabetes, obesity and Alzheimer's disease.On March 5, Eli Lilly announced it would be presenting preclinical data for agents targeting Nectin-4, KRAS G12D and BRM (SMARCA2), which are proteins and mutations connected to cancer development and progression, at the annual American Association for Cancer Research meeting in San Diego on April 8. On March 8, the company said it was expecting the US Food and Drug Administration (FDA) to hold a meeting to discuss the safety and efficacy of its Alzheimer's disease drug, donanemab, pushing back its expected approval date beyond Q1. The drug completed its Phase 3 trial in May 2023, with test results showing "significant" slowing of cognitive and functional decline for people with early symptoms of the disease. At the time of this writing, a date for the meeting had not been set by the FDA. The company's Q1 2024 earnings call is scheduled for April 30. 2. Novo Nordisk (NYSE:NVO) {"@context":"https://schema.org","@type":"Corporation","name":"Novo Nordisk A/S","url":"https://www.novonordisk.com","description":"With almost 50% market share by volume of the global insulin market, Novo Nordisk is the leading provider of diabetes-care products in the world. Based in Denmark, the company manufactures and markets a variety of human and modern insulins, injectable diabetes treatments, oral antidiabetic agents, and obesity treatments. Novo also has a biopharmaceutical segment (constituting roughly 15% of revenue) that specializes in protein therapies for hemophilia and other disorders.","tickerSymbol":"NYSE:NVO:US","sameAs":[],"image":"https://investingnews.com/media-library/image.gif?id=32908911&width=980","logo":"https://investingnews.com/media-library/image.gif?id=32908911&width=210"} Company Profile Market cap: US$585 billionNovo Nordisk has demonstrated a commitment to addressing various health conditions, such as type I and II diabetes, obesity, hemophilia and growth disorders, by marketing therapies in 170 countries. The company's main product is the diabetes drug Ozempic, which is also marketed for obesity under the name Wegovy.In addition to innovative drug treatments, the company has developed an app-supported, less invasive way for diabetics to monitor and record their insulin levels with the NovoPen6 and NovoPen Echo Plus. Novo Nordisk has a working partnership with Microsoft (NYSE:MSFT) through which it uses the tech giant's artificial intelligence (AI), cloud and computational services to facilitate the discovery of new drugs and treatments. The firm also recently announced it will work with AI heavyweight NVIDIA (NASDAQ:NVDA) to build the Danish Center for AI Innovation, which will host a NVIDIA supercomputer and will run on 100 percent renewable energy. On March 7, Novo Nordisk presented Phase 1 data for amycretin, an obesity treatment that targets both GLP-1 and amylin receptors, and gave update on its blockbuster drug Wegovy, which only targets GLP-1 receptors. Interim results from the early stages of Phase 2 trials, which are ongoing, were also revealed. According to the company, volunteers taking amycretin have lost up to 13.1 percent of their body weight after 12 weeks, compared to 6 percent seen in patients taking Wegovy. Buy now , 3. Johnson & Johnson (NYSE:JNJ) {"@context":"https://schema.org","@type":"Corporation","name":"Johnson & Johnson","url":"https://www.jnj.com","description":"Johnson & Johnson is the world's largest and most diverse healthcare firm. Three divisions make up the firm: pharmaceutical, medical devices and diagnostics, and consumer. The drug and device groups represent close to 80% of sales and drive the majority of cash flows for the firm. The drug division focuses on the following therapeutic areas: immunology, oncology, neurology, pulmonary, cardiology, and metabolic diseases. The device segment focuses on orthopedics, surgery tools, vision care, and a few smaller areas. The last segment of consumer focuses on baby care, beauty, oral care, over-the-counter drugs, and women's health. Geographically, just over half of total revenue is generated in the United States.","tickerSymbol":"NYSE:JNJ:US","sameAs":[],"image":"https://investingnews.com/media-library/image.gif?id=32246428&width=980","logo":"https://investingnews.com/media-library/image.gif?id=32246428&width=210"} Company Profile Market cap: US$374.4 billionJohnson & Johnson operates on a massive scale and encompasses various segments through its subsidiaries. Its primary pharmaceutical subsidiary is Janssen Pharmaceuticals, which focuses on cardiovascular disease and metabolism, infectious diseases and vaccines, neuroscience, oncology, immunology and pulmonary hypertension.Following positive data from a Phase III study, the company submitted its drug Darzalex Faspro to the FDA for approval on January 30, and later to the European Medicines Agency on March 4. Darzalex Faspro is a treatment for newly diagnosed multiple myeloma in patients who are eligible to receive a transplant. At the time of this writing, the drug had not been approved by either regulator. Johnson & Johnson recently completed the acquisition of a clinical-stage biopharmaceutical company called Ambrx Biopharma in a deal worth US$2 billion. According to a press release issued by the company, the acquisition will allow Johnson & Johnson to further develop antibody-drug conjugates, expanding its offering of targeted oncology therapies. 4. Merck & Company (NYSE:MRK) {"@context":"https://schema.org","@type":"Corporation","name":"Merck & Company Inc.","url":"https://www.merck.com","description":"Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. Within cancer, the firm's immuno-oncology platform is growing as a major contributor to overall sales. The company also has a substantial vaccine business, with treatments to prevent hepatitis B and pediatric diseases as well as HPV and shingles. Additionally, Merck sells animal health-related drugs. From a geographical perspective, just under half of the company's sales are generated in the United States.","tickerSymbol":"NYSE:MRK:US","sameAs":[],"image":"https://investingnews.com/media-library/image.gif?id=32246498&width=980","logo":"https://investingnews.com/media-library/image.gif?id=32246498&width=210"} Company Profile Market cap: US$316.68 billionMerck & Company has an extensive portfolio of products, including treatments for conditions such as diabetes and cancer, as well as vaccines for a variety of diseases. Merck has a robust research and development pipeline, with over 80 programs currently in Phase II trials, over 30 in Phase III trials and more than 10 under review. The company is actively pursuing treatments for a range of conditions, including HIV, Ebola, hepatitis C, cardio-metabolic disease and antibiotic-resistant infections. On March 13, Merck revealed plans to develop a new version of its human papillomavirus (HPV) vaccine Gardasil; it will be a multi-valent vaccine that will protect against more strains of HPV. The company also plans to run a separate trial to evaluate the results of a single dose of Gardasil 9, its current vaccine, compared to the previous three dose regimen. Merck intends to begin the two trials in the fourth quarter of 2024. Buy now , 5. AbbVie (NYSE:ABBV) {"@context":"https://schema.org","@type":"Corporation","name":"AbbVie Inc.","url":"https://www.abbvieinvestor.com","description":"AbbVie is a pharmaceutical company with a strong exposure to immunology and oncology. The firm's top drug, Humira, represents close to half of the company's current profits. The company was spun off from Abbott in early 2013. The recent acquisition of Allergan adds several new drugs in aesthetics and women's health.","tickerSymbol":"NYSE:ABBV:US","sameAs":[],"image":"https://investingnews.com/media-library/image.gif?id=31425662&width=980","logo":"https://investingnews.com/media-library/image.gif?id=31425662&width=210"} Company Profile Market cap: US$315.37 billionAbbVie is a global biopharmaceutical company that discovers and delivers innovative medicines and solutions to address complex health issues. The company has identified five areas of focus where it believes it can make a significant impact in improving treatments for patients: immunology, oncology, neuroscience, eye care and aesthetics. Its biggest performer was Humira, a therapy for autoimmune conditions such as rheumatoid arthritis and Crohn's disease, but its exclusivity ended in 2023 and biosimilars have now entered the market. On February 28, AbbVie announced a strategic partnership with OSE Immunotherapeutics (LSE:0RAD,EPA:OSE), a clinical-stage immunotherapy company, to develop a monoclonal antibody to treat chronic and severe inflammation. "This collaboration underscores our commitment to expanding our immunology portfolio with the ultimate goal of improving the standard of care for patients living with inflammatory diseases globally," said Jonathon Sedgwick, PhD, senior vice president and global head of discovery research at AbbVie. The firm cemented that point with the March 25 news that it has entered a definitive agreement to acquire Landos Biopharma (NASDAQ:LABP), a clinical-stage biopharma company that develops oral therapeutics for autoimmune diseases. Buy now , FAQs for pharmaceutical stocks ​What does the pharmaceutical industry do? The pharmaceutical industry encompasses a variety of companies that have different — although sometimes overlapping — roles to play. The most famous players are the "Big Pharma" companies. These giants often have a variety of subsidiaries, large pipelines and many products in their portfolios. There are also smaller pharma R&D companies, which sometimes get acquired by larger firms if their work seems promising. Companies in these categories research, develop and bring to market drugs aimed at filling unmet needs, or helping people who are resistant to pre-existing treatments.Once patents run out on prescription drugs, generic drug manufacturers create much cheaper generic versions. Wholesale companies also play a large role in the pharma sector. According to Common Wealth Fund, wholesalers have four areas through which they affect drug buying and distribution: "setting generic drug prices, leveraging list price increases, competing in specialty drug distribution, and mitigating or exacerbating drug shortages." ​What is the big pharma business model? Big Pharma companies have a fairly consistent business model. Often, the company's R&D team will slowly develop a new drug through many stages of testing to prove the drug's efficacy, safety and necessity. If all trials are completed successfully, the company will apply to government organizations such as the FDA, which must approve the drug before it can be mass produced, marketed and sold. Companies can skip a number of these steps by acquiring smaller companies, or through in-licensing, which results in two companies sharing the burden of a drug's development through to commercialization. However, it's worth noting that large pharma companies have many drugs in their pipelines at any given time, and many don't make it to approval.Once a drug is approved by the relevant health organization, it can be marketed and prescribed. Because patents expire after 20 years, companies lobby and advertise to try to get as many sales as possible during that window. Who are the "Big 3" in pharma? The "Big 3" in pharma refers to the three largest wholesalers: AmerisourceBergen (NYSE:ABC), Cardinal Health (NYSE:CAH) and McKesson (NYSE:MCK). Collectively, those three companies account for over 92 percent of wholesale prescription drug distribution in the US. Which country is number one in the pharma industry? The US is the top pharmaceutical country, with five of the top 10 pharma companies by revenue headquartered in the nation. The country is also in the lead when it comes to consumer spending on pharmaceuticals — this is due to the high cost of brand-name drugs. Aside from that, the US is the top country globally for R&D spending — companies that are part of PhRMA, a trade group that represents US biopharmaceutical companies, spent US$100.84 billion on R&D in 2022 out of a total of US$244 billion spent by pharmaceutical companies globally that year. ​What are the problems in the pharmaceutical industry? One of the largest problems with the pharmaceutical industry, particularly in the US, is the high cost of treatments. According to a study looking at American prescription drug spending between 2016 and 2021, prescription drug prices were 2.5 times the cost on average of prices in similar high-income nations. In early 2023, US President Joe Biden signed the Inflation Reduction Act (IRA) into law intending to reduce healthcare costs and improve access to medications for patients; however, it may present new challenges and opportunities for pharmaceutical companies as they adapt to the evolving regulatory and market landscape. Critics have argued that the IRA could negatively impact drug development and innovation due to additional regulatory hurdles and increased operational costs, potentially reducing the incentive to invest in R&D. Additionally, the IRA requires drug companies to pay rebates to Medicare if they raise the price of drugs faster than inflation. If the industry can't adjust its prices in response to market conditions, it could deter investment in new drug development. ​What is the future of pharmaceuticals? Pharmaceutical companies will have to adapt to changing times. The world is shifting, with economic woes, geopolitical disruptions and supply chain concerns affecting nearly every sector. Innovation continues to accelerate as well, and the medical landscape has changed in the wake of COVID-19. Additionally, the US government is making moves to address the astronomical prices of prescription medicine as the industry comes under more scrutiny.For a look at what is else is effecting the market, read our 2024 Pharma Market Forecast. ​Are pharmaceutical stocks risky? While established players like the Big Pharma and wholesale companies discussed above should be relatively consistent, small companies are make-or-break depending on whether their drugs are successful. This means that investors could see much higher returns compared to large companies, but run the risk of taking massive losses in the case of failure. This is an updated version of an article originally published by the Investing News Network in 2016.Don’t forget to follow @INN_LifeScience for real-time updates!Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
Investing News Network

S&P 500's Bull Run to Continue: ETFs to Bet On

2 years 6 months ago
The S&P 500 Index has been on a tear this year, surpassing the 5,200 milestone last week. The Fed’s signal to cut interest rates drove the latest rally. The move will mark the end of the most aggressive Fed hiking cycle and fu
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