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The Next Big Theme: September 2024

Sep 17, 2024

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Artificial Intelligence

AI Monetization Surge Fuels Rising Startup Valuations

OpenAI is reportedly in talks to raise a funding round that values the company at over $100 billion.1 Earlier this year, OpenAI’s valuation jumped to over $80 billion, significantly higher than its $29 billion valuation from last year.2 This news follows OpenAI announcing that it is on track for $3.4 billion in annualized revenue for 2024, more than double the $1.6 billion it reported in late 2023.3 The company has been focusing on increasing revenue from enterprise customers by offering AI services, including access to its models through Microsoft Azure, which is expected to generate $200 million.4 OpenAI also announced the launch of SearchGPT, a prototype search engine designed to deliver fast, relevant answers with clear sources. Condé Nast, one of the first enterprise customers of the new prototype, will now display content from outlets like Vogue, The New Yorker, Condé Nast Traveler, and GQ through SearchGPT.5

Healthcare Innovation

Obesity Drugs Show Promising Results in Preventing Diabetes and Treating Other Conditions

The positive momentum continued for obesity drugs, as Eli Lilly recently reported clinical trial data in which its obesity drug, Zepbound, cut the risk of pre-diabetics progressing to diabetes by 94% compared to placebo.6 Called SURMOUNT-1, the trial tested tirzepatide treatment in adults considered to be pre-diabetic and obese or overweight. Adults who received the highest dose of tirzepatide, 15 milligrams, lost about 23% of their body weight on average over three years, significantly more than the average 2% lost by those on placebo.7 Lilly also released data that supports tirzepatide’s use beyond diabetes and weight loss, including for sleep apnea and heart failure. Zepbound is expected to report $22.3 billion in 2030 sales. The same medication but for type 2 diabetes, Mounjaro, is expected to total $22.7 billion in 2030 sales.8

Internet of Things

AI PC Chip Competition Intensifies

Qualcomm and Intel are accelerating their efforts to capture the growing demand for AI-integrated devices and reshape the future of personal computing. Qualcomm introduced its Snapdragon X Plus 8-core processor, targeting PCs priced as low as $700 to expand its semiconductors to more devices.9 Traditionally focused on smartphone chips, Qualcomm is expanding its presence in the PC market to compete with companies like Intel. The new Snapdragon X series, designed for PCs running Microsoft’s Windows operating system, offers powerful AI capabilities while maintaining long battery life, making it suitable for a wide range of AI-driven applications.10 Qualcomm’s push follows Microsoft’s launch of Copilot + PCs, which rely on Qualcomm’s chips to manage on-device AI tasks. Intel also recently unveiled its Core Ultra 200V series, also built to power AI functionalities on PCs with better battery life.11 Intel’s chips are expected to be made available in September 2024.12

Autonomous & Electric Vehicles

Uber Partners with AI Startup Wayve and Cruise to Drive Autonomous Vehicle Innovation

Uber and AI startup Wayve, which aims to develop a general purpose driving AI system for any vehicle worldwide, announced a partnership to advance autonomous driving technology. As part of the deal, Uber will fund Wayve in return for a minority stake.13 Wayve’s AV2.0 technology, which enables vehicles to autonomously navigate by using data from their physical environment, offers automakers the ability to enhance existing vehicles with advanced driver assistance systems and fully automated driving capabilities. For Uber, integrating Wayve’s AI solutions could fast-track the rollout of self-driving vehicles on its platform. Uber also entered a multiyear partnership to bring Cruise, GM’s self-driving car company, to the Uber platform.14 Once launched, Uber riders will have the option to select a Cruise AV.15 Both partnerships further solidify the auto industry’s shift toward shared, electric, and autonomous mobility, positioning Uber as a key player in the future of transportation.

Defense Technology

Defense Tech Private Investments Gain Momentum

With modern militaries embracing AI-powered and unmanned tools of war, defense start-up Anduril Industries has raised $1.5 billion in a Series F round, boosting its valuation to $14 billion from $8.5 billion in 2022.16 The company plans to use the funds to expand its workforce, enhance infrastructure, and strengthen its supply chain. A significant portion of the investment will support Arsenal, a new manufacturing platform that will power the Arsenal-1 factory to produce tens of thousands of autonomous military systems annually.17 Anduril’s focus on AI-powered drones and robotics addresses critical gaps in defense production, particularly those exposed by the war in Ukraine. With long lead times for replenishing weapons, the industry faces challenges in responding quickly to conflicts. Scalable, cost-effective autonomous systems position Anduril as a disruptor while offering the United States and its allies the ability to enhance their military readiness.

Hydrogen

European Commission Approved Green Hydrogen Support Schemes for the Netherlands and Spain

The European Commission approved a €998 million ($1.09 billion) financial support scheme for the Netherlands to produce renewable hydrogen. The scheme will support the construction of at least 200 megawatts (MW) of electrolysis capacity and contribute to the Netherlands’ efforts to grow its electrolyzer capacity to 500 MW in 2025 and to 3–4 gigawatts (GW) by 2030. It will also support the EU’s ambitions to install at least 6 GW of renewable hydrogen electrolyzers by 2024 and at least 40 GW by 2030. Eligible projects could have as much as 80% of costs covered by grants, and projects could receive a premium for up to 10 years.18 The bidding process is expected to conclude by year-end. The European Commission also approved a €1.2 billion ($1.3 billion) financial support package for renewable hydrogen projects in Spain. The new support scheme could support up to 100 MW of installed electrolyzer capacity. Qualified investments include the production of renewable energy-derived electricity, the production of renewable hydrogen-derived fuels, and renewable hydrogen storage.19

THE NUMBERS

The following charts examine returns and sales growth expectations by theme, based on their corresponding ETFs or indices.

KEEP UP WITH THE LATEST RESEARCH FROM GLOBAL X

To learn more about the disruptive themes changing our world, read the latest research from Global X, including:

ETF HOLDINGS AND PERFORMANCE

To see individual ETF holdings and current performance across the Global X Thematic Suite, including information on the indexes shown, click these links:

Appendix: Thematic Expected Sales Growth Graph Indices

AgTech & Food Innovation: Solactive AgTech & Food Innovation Index

Aging Population: Indxx Aging Population Thematic Index

Artificial Intelligence & Technology: Indxx Artificial Intelligence & Big Data Index

Autonomous & Electric Vehicles: Solactive Autonomous & Electric Vehicles Index

Blockchain: Solactive Blockchain Index

Clean Water: Solactive Global Clean Water Industry Index

CleanTech: Indxx Global CleanTech Index

Cloud Computing: Indxx Global Cloud Computing Index

Cybersecurity: Indxx Cybersecurity Index

Data Center & Digital Infrastructure: Solactive Data Center REITs & Digital Infrastructure Index

Defense Tech: Global X Defense Tech Index

E-Commerce: Solactive E-commerce Index

FinTech: Indxx Global FinTech Thematic Index

Genomics: Solactive Genomics Index

Hydrogen: Solactive Global Hydrogen Index

Internet Of Things: Indxx Global Internet of Things Thematic Index

Lithium & Battery Technology: Solactive Global Lithium Index

Millennial Consumer: Indxx Millennials Thematic Index

PropTech: Global X PropTech Index

Renewable Energy Producers: Indxx Renewable Energy Producers Index

Robotics & Artificial Intelligence: Indxx Global Robotics & Artificial Intelligence Thematic Index

Social Media: Solactive Social Media Total Return Index

Solar: Solactive Solar Index

Telemedicine & Digital Health: Solactive Telemedicine & Digital Health Index

U.S. Infrastructure: Indxx U.S. Infrastructure Development Index

Video Games & Esports: Solactive Video Games & Esports Index

Wind Energy: Solactive Wind Energy Index

Category: Articles

Topics: Consumer Economy, Disruptive Technology, Infrastructure & Environment, Thematic

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