Cathie Wood’s ARK has stated that the market value of disruptive innovation platforms could scale 40% annually during this business cycle, from $13 trillion today to $200 trillion by 2030. In 2030, the market value related to disruptive innovation could account for nearly all of the worldwide equity market capitalization, it stated.
Brett Winton, Chief Futurist and ARK Enterprise Investment Committee Member, noted in his research that artificial intelligence is crucial catalyst, its velocity cascading through all other technologies.
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He named five converging innovation platforms that outline this technological era: Public Blockchains, Artificial Intelligence, Multiomic Sequencing, Energy Storage and Robotics.
The converging innovation platforms involve 14 investable technologies undergoing steep cost declines, impacting multiple sectors, and serving as launching pads for more innovation, Winton wrote.
On Robotaxis: ARK said the pace of AI innovation has increased its confidence within the business viability of robotaxis and other autonomous mobility systems.
“Neural networks are starting to exceed human performance in multiple areas. Autonomous transportation should prove no different. Performance improvements in neural networks should enable scalable robotaxi systems which might be safer than humans in just about all situations,” it said.
It’s widely known that Wood is a giant Tesla Inc (NASDAQ: TSLA) bull and her fund has stuck with the stock during its worst rout in history. “Tesla applies transformer neural networks—introduced as an answer for language translation—to assist its vehicles understand complicated intersections and drivable pathways,” ARK stated.
Talking about battery capability, ARK noted that improvements in battery capability and energy density will likely be critical to advances in intelligent devices.
Satellite Connectivity: It identified that satellite connectivity providers like Iridium Communications Inc (NASDAQ: IRDM) and Starlink have made worldwide connectivity a reality by making the most of the price declines in reusable rockets. Iridium Communications is the second largest holding within the ARK Space Exploration & Innovation ETF (NYSE: ARKX).
“The price of satellite bandwidth has fallen 7,500-fold over 19 years, enabling the launch of a record variety of communication satellites in 2022,” it said.
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