Investing in technological innovation can be challenging. Separating the hype from the potential to create long-term value requires a sometimes skeptical eye. Even so, there are many unknown variables and deceptive representations that can prevent a return on your investment. In this article, data-driven investor Daniel Calugar highlights ten of the most promising areas for investing in technology:
1. Artificial Intelligence:
AI has become one of tech’s most severely overused buzz words, and yet there are exceptional investment opportunities in companies that develop AI applications. Because marketers know that few people truly understand what AI means, they use it liberally and, unfortunately, often inappropriately.
2. Augmented Reality:
AR software projects digital images onto real-world surfaces and could easily represent the next frontier in computing. Advanced AR apps often use 3D-sensing cameras, computer vision chips, artificial intelligence (AI) algorithms, and cloud services to digitally enhance a user’s surroundings in real-time. Big names like Microsoft and Snap are making significant investments in this technology.
3. Autonomous Vehicles:
Not only the companies that make autonomous vehicles but also smaller companies that develop mapping software and simulation environments are likely a good bet for future growth.
Biotech applications can be found in medicine, agriculture, industrial processes, and environmental sustainability. In each case, they are focused on providing solutions to human health problems. Biotech companies have historically been sound investments, and there are no indications that this will change in the foreseeable future.
While there are some widespread misconceptions about what blockchain is and what it does, applications based on this distributed ledger technology have a bright future. Be cautious of any firm that talks about blockchain as if it is only used for cryptocurrency or gaming. That arena is rife with scammers.
6. Internet of Things:
Eventually, every conceivable aspect of our lives will be connected to the internet and, therefore, a part of the Internet of Things (IoT). It is a growth area within the technology sector, and as IoT grows, we can expect cybersecurity solutions to protect all the connected devices to grow as well.
7. On-Demand Platforms:
With services like Uber, Upwork, and Netflix, consumers have had a taste of the convenience of on-demand platforms, and they like it. Just about any new service that will provide consumers a faster and easier way to get what they want right when they want it will probably do well going forward.
8. Robotic Process Automation:
The reality of R2-D2 and C-3PO may not be imminent, but just about anything that can be automated in the future will be automated. From security guards to transportation systems to manufacturing lines, automation efficiencies are a reality, and you can expect them to continue growing.
9. Social Networking:
Facebook and Instagram may be passé now, but social networking is still a hot business. The caution here is that the public can be fickle about what social platforms are “cool,” so diversification is a good strategy.
10. Virtual Reality:
Product marketing and entertainment are two business types looking to adopt virtual reality in a big way. The convenience of being able to tour five or six potential real estate purchases all from the comfort of your living room within a couple of hours is one example of how this technology can be used. The VR experiences can vary widely from one solution to another, so personally experience them before investing if at all possible.
Technology is an exciting sector for investors. The new advances are remarkable, as are the investment opportunities. However, use a little common sense and seek qualified technical advice if you’re not sure you understand a specific technology well.