Alberto García M

June 29, 2023

During this year it has become a fashionable topic to talk about artificial
intelligence and about the boom of what it can mean in our ordinary life and
about its effects on social relations and big companies.

What is AI?

It is the creation of machines or programmed technology with the purpose
of integrating a capacity superior to that of a human being by analyzing,
coding, processing and reasoning certain information through the use of an
endless number of algorithms according to the required functions. It is the
beginning of what we have seen in science fiction movies where robots
become a reality and a substantial part of human activities ranging from: a
loving chat, a manned robot that takes you into space or a simple robot that
helps with household chores, just to give an example. Technology experts
still consider that we are in our infancy in its development, even though
technically, AI can be considered in its initial development since the
creation of the first electromechanical computer created by the German
Konrad Zuse in 1938.

Why is it starting to be a trending topic in 2023?

In recent years are when programming algorithms began to have a
relatively rational dose: we are evolving from just programming machines
and entering a large amount of data that was only stored to be manipulated
by us to the fact that these machines begin to reason, analyze and execute
activities similarly to a person. Although there are already considerable
advances in the use of AI, such as the Tesla that works without human
driving (autopilot), or Google that reads your ideas through your behavior
on the web, it is still ineffective or difficult to trust that such machines have
the precision to execute elementary decisions as a human would: A Tesla is
still unable to recognize potholes in the rain, let alone navigate the hysteria
of CDMX on a Monday morning; Google may be able to define certain
tastes you have, understand your supermarket needs but still unable to
define your personality or be accurate in your sense of humor today.

Several companies are beginning to find a specific item in the development
and application of AI in medical issues, commerce, social and industrial
relations; precisely in the labor and business field is where its next boom

is predicted, in which, it will be able to analyze and make execution
decisions with precision similar to that of a human in seconds, saving

significant time in financial, labor and commercial decision making by
displacing workers under the concept “of optimization” for each specific
industry. From my perspective, the human still retains and will retain for a
long time “the criterion” to evaluate situations, particularly “gray” which is
when we find ourselves in gaps without response or breaks that linear
chain of any system and AI becomes imperfect, although no doubt, will be
the perfect assistant to evaluate possibilities and make us more complex in
our daily activities.

What is the relationship between AI and the investment world?

When we make investment decisions and advise any client, we have to
consider that the largest companies in the world are immersed in this
development and therefore are the most attractive to obtain returns and
benefits in both the short and long term, as they are considered the future
of the world. When visualizing an investment fund in technology, we will
find companies that only flirt with AI and others that dedicate their
business exclusively to its development. As in any investment, it is
necessary to be selective in the companies and funds to be invested in
order to focus on the best options that fulfill the promise of success in the
future, since they allow us to generate the best returns on our savings.

How can I invest in these companies and what benefits do they generate?

In conjunction with the investment plans advised by Grupo Hedeker, it is
possible to buy the live shares of these companies and through different
technology investment funds that we have among the main Asset

Managers in the world. In the following, we will review the performance of
these shares and the investment funds oriented to AI.

Graphic 1 – Stock performance of major technology companies with
divisions focused on AI development during 2023 (January to June 23).

Looking at the performance of such companies, we can conclude that the
present expectation is overwhelming. Nvidia which is the largest chipmaker
on the planet has become the leading supplier of microprocessors that
enable AI implementation; we see Tesla also leading the table along with
Meta finding different development approaches and current business lines.
On the opposite side, we see a more lagging IBM, Intel and Synopsys which
beyond the potential demonstrated in AI development, have performed
contrary to the majors because of the company’s current business
relationship, i.e., their current software, microprocessor and equipment
production business has not performed as expected compared to their
technology competitors.

Graphic 2 – Performance of the main investment funds focused on the
technology sector during the year 2023 (January – June 23)

Although our technology-themed investment funds are not 100% focused
on investing in companies exclusively focused on AI development, they
have a large participation in the companies mentioned in Chart 1,
explaining their great performance.

This reference gives us a great result, where for every $100 USD that I
invest today means a return of approximately $41 USD
, so start investing
in this market will possibly be the best investment you can make in your
life. Any additional questions, contact me directly through or in my social network LinkedIn as Alberto Garcia