Finance is one of the most conservative sectors and one of the latest technology adopters for a good reason: it requires stability, predictability, and risk hedging. Even if there are significant opportunities presented by technology, financial companies will be lagging behind because they should wait for a technology to enter its maturity stage as well as for somebody else to test it first and absorb associated risks. However, once a technology is stable enough and has gained mass adoption among businesses, it becomes appealing for the finance sector. This is the case of machine learning (ML), which has ceased to be just a buzz word now. SEE ALSO: Meet Manifold: Uber's machine learning model debugging tool goes open source Machine learning uses statistics to recognize patterns and associate them with entities or cases.
Early this year, I detailed that Intel (INTC) was poised to lead the AI revolution over the coming decade. The widespread adoption of AI will contribute significantly to demand for (Intel) compute silicon, and hence, will be a growth driver for the company. Intel forecasts it will be about a $25 billion opportunity by 2025, compared to $3.8 billion revenue in 2019. On June 18, Intel launched its third-generation Xeon Scalable platform, codenamed Cooper Lake. This follows a bit over a year after the company's April 2019 data-centric portfolio launch, which included second-generation Cascade Lake, the 10nm Agilex FPGA and 800 series of 100G Ethernet adapters.
AI is making strides at many levels in the world of investment management. Investors may already be riding the wave of artificial intelligence, unaware of the many ways they've been integrated. There are three main levels where AI is making a mark, says Amit Gupta, a managing director in Accenture's capital market industry group. At the first level, firms are using AI in back-office administrative tasks like net asset value calculations, reconciliation, settlement operations. At the second level, they use it in front-office tasks like client targeting and management, profiling of clients, personalization of service.
Data is growing by leaps and bounds, the convergence of extremely large data sets both structured and unstructured define Big Data. The increasing awareness of the Internet of Things (IoT) devices among organizations and volume, variety, velocity and veracity at which data is generated have caught the attention of the enterprise in a bid to enhance digital technologies and guide digital transformation. Analytics Insights eliminates that the big data market size will grow at a CAGR of 10.9%, globally from US$ 193.5 billion in 2020 to US$ 301.5 billion by 2023. This region is witnessing significant developments in the big data market gaining remarkable traction in the BFSI industry vertical. Numerai is the world's first hedge fund, to predict the stock market.
Baidu (NASDAQ: BIDU) is making a big push into cutting-edge IT segments. The company announced Thursday that it will be allocating more capital to investments in developing corners of the market, particularly artificial intelligence (AI), cloud computing, and data centers. This project will unfold over the next 10 years, in an attempt by the China-based company to build out assets for future tech needs. This piggybacks on the Chinese government's ambition to develop what it calls "new infrastructure" throughout the country to dramatically modernize its economy. Baidu did not specify how much it would spend on its new infrastructure efforts.
This top S&P 500 stocks forecast is designed for investors and analysts who need predictions for the whole S&P 500. Package Name: Top S&P 500 Stocks Recommended Positions: Long Forecast Length: 3 Months (4/1/2020 – 7/1/2020) I Know First Average: 32.03% The greatest return came from ABMD at 75.82%. NVDA and ETFC also performed well for this time horizon with returns of 44.61% and 42.98%, respectively. The overall average return in this Top S&P 500 Stocks package was 32.03%, providing investors with a 11.47% premium over the S&P 500's return of 20.56% during the same period.
This stock scanner is part of the Risk-Conscious Package, as one of I Know First's equity research solutions. We determine our aggressive stock picks by screening our algorithm daily for higher volatility stocks that present greater opportunities but are also riskier. Package Name: Aggressive Stocks Forecast Recommended Positions: Long Forecast Length: 3 Months (4/1/2020 – 7/1/2020) I Know First Average: 100.66% The highest trade return came from NVAX, at 486.89%. NLS and DPW followed with returns of 259.77% and 213.26% for the 3 Months period.
This forecast is part of the Options Package, as one of I Know First's algorithmic trading tools. Package Name: Options Recommended Positions: Long Forecast Length: 1 Month (5/31/2020 – 7/1/2020) I Know First Average: 13.93% I Know First's State of the Art Algorithm accurately forecasted 8 out of 10 trades in this Options Package for the 1 Month time period. OSTK was the highest-earning trade with a return of 63.69% in 1 Month. Additional high returns came from DVAX and RH, at 35.78% and 19.72% respectively.
Artificial Intelligence (AI) refers to intelligent machines that work and react like humans. AI helps to deliver insights to complex client questions in real time through its virtual conversational interface between business and clients. AI enabled applications such as natural language generation (NLG) is closing the gap between data analysis and investment decisions, providing real-time insights through automated trading strategies. For instance, according to a survey in 2018 by Forbes, 34% of wealth management companies have currently deployed AI within their firms and around 99% plan on deploying AI within the next 3 years. Companies such as Wells Fargo and Bank of America have already deployed AI services to better serve clients.
As businesses, governments and consumers rely on digital systems to fulfil most of their daily operations, so do the risks of those systems being hacked increase. The more the technologies they adopt, the greater the hazards they have to face. In fact, new solutions to ease businesses daily operations such as Artificial Intelligence in Operative Systems and IT software huge databases, bring even more complexity to an already convoluted world. However, these new techs can also become their strongest allies! If properly developed and embraced, they can deliver new layers of security that build up a strong shield of protection against hackers.