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The Pharmacology of Human Decision Making Study with Monash University
BlinkLab Limited (ASX:BB1) (“BlinkLab” or the “Company”), an innovative digital healthcare company developing smartphone-based AI powered diagnostic tests for neurological disorders, is pleased to announce a new study to run in partnership with Monash University. The study will evaluate BlinkLab as a medical device able to monitor the therapeutic effects of ketamine on cognitive processes whereby sensory information is converted into decision making. In the future, results from this study can help facilitate cognitive behavioural therapy outcomes in patients with psychiatric conditions such as depression, schizophrenia, epilepsy, and post-traumatic stress disorder (PTSD).
Highlights
- Study provides a unique opportunity to discover the building blocks of cognition with the potential to transform our understanding of a range of clinical conditions including depression, schizophrenia, epilepsy, PTSD.
- Potential to demonstrate that drugs targeting glutamatergic neurotransmission can treat some aspects of psychiatric disease symptomology or improve the efficacy of cognitive behavioural therapy.
- Evaluates ability of BlinkLab tests to be used as a tool to measure pharmacological effects of existing and novel therapeutic agents.
Significance of the Study
Perceptual decision-making is a fundamental cognitive process where sensory information is transformed into meaningful interpretations of the environment, guiding our actions. This field has flourished through the integration of neuroscience and mathematical modelling , providing a robust framework for investigating the neural mechanisms involved. The core idea is that decisions are based on the accumulation of sensory evidence until a decision threshold is reached. These advancements offer a unique opportunity to uncover the fundamental components of cognition and have the potential to revolutionise our understanding of various clinical conditions. By characterising underlying mechanistic abnormalities, refining clinical classifications, and identifying intervention targets, this research holds promise for significant clinical advancements and new therapies for a variety of psychiatric and neurodevelopmental conditions.
The study, conducted by the School of Psychological Sciences at Monash University will investigate the impact of glutamate challenge on perceptual decision making (including behavioural performance, sensorimotor gating) by administering ketamine while participants perform a prepulse inhibition test using BlinkLab application.
The study will be able to demonstrate whether administration of ketamine can disrupt basic sensory encoding mechanisms, which will be detectable in reduced prepulse inhibition.
Study Design
The study will recruit up to 35 healthy adults between 18-55 years old. Each participant will complete 3 testing sessions after ketamine administration. Their participation is expected to take 4-5 weeks per subject.
Terms of the Collaboration Agreement (“Agreement”)
- Responsibilities: BlinkLab will provide access to its technology, data and shall facilitate the use of its platform during the term of the Agreement.
- Financial arrangements: None at the date of signing (to be determined via mutual agreement in the future and in a separate agreement).
- Intellectual Property: Each party will retain all right, title and interest in and to its background intellectual property (copyright, trademarks, designs, know how, patents, plant varieties, confidential information and all other intellectual property as defined in article 2 of the Convention establishing the World Intellectual Property Organization 1967). Any project IP (generated through the study) will be owned by Monash University.
- Term: Date of signature by the last party to sign (5 August 2024), until completion of the Research Project as communicated by Monash.
- Termination: Either party may terminate this Agreement by giving between 5 and 20 days written notice (at the terminating party’s election) to the other party if the other party commits a material breach of the Agreement and does not remedy that breach within 10 days after receiving notice requiring them to do so. Monash may terminate this agreement with immediate effect by giving written notice to BlinkLab.
- Confidentiality: Standard confidentiality terms for an agreement of this nature included.
This announcement has been approved by the Board of Directors.
Click here for the full ASX Release
This article includes content from Blinklab Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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BlinkLab Limited
Overview
BlinkLab (ASX:BB1) offers a smartphone-based diagnostic platform that leverages computer vision, artificial intelligence and machine learning. A company started by neuroscientists at Princeton University, Blinklab has developed the technology over the last several years providing an app-enabled, smartphone-based diagnostic tool for evaluating children with neurodevelopmental conditions such as autism and ADHD.
The app turns the mobile phone into a medical device for an effortless way of conducting remote and rapid tests.
BlinkLab’s smartphone-based technology, which uses AI and machine learning (ML), makes it attractive to investors. Like other industries, AI is becoming very popular in the healthcare sector. According to Statista, the AI healthcare market is expected to proliferate from $11 billion in 2021 to $187 billion in 2030. The increasing use of AI is driven by advanced ML algorithms, access to data, and use of 5G technology. AI and ML technologies can evaluate and analyze enormous volumes of data faster than humans.
Artificial intelligence, and particularly machine learning, has the potential to serve as the great equalizer for many behavioural healthcare concerns like autism. According to recent data, 97 percent of adults in the United States own a cellular device, and 85 percent own a smartphone. In emerging economies such as Mexico, South Africa, India, Philippines, etc., most adults have access to a mobile phone of some kind, with 53 percent having access to a phone that can connect to the internet and run apps (a smartphone). As these percentages continue to rise and internet-powered devices become ubiquitous, access to digital services can become democratised on a global scale. While autism spectrum disorder (ASD) services are currently restricted to relatively privileged populations, digital solutions powered by emerging data science methodologies can make access to autism therapy universal.
Large players are investing in this segment to tap into the vast potential of these new technologies. One such example was Pfizer’s acquisition of ResApp. In October 2022, Pfizer acquired Queensland University startup ResApp Health for $179 million. ResApp developed a smartphone technology to detect respiratory diseases using cough analysis accurately. Furthermore, big tech companies such as Apple, Amazon, Microsoft and Alphabet are also now venturing into the AI healthcare market.
Company Highlights
- Australia-based BlinkLab is focused on transforming mental healthcare through an AI-enabled smartphone application, a breakthrough technology developed at Princeton University.
- The company’s innovative approach leverages the power of smartphones, AI and machine learning to deliver screening tests specifically designed for children as young as 18 months old. This marks a significant advancement, considering traditional diagnoses typically occur around five years of age, often missing the crucial early window for effective intervention.
- Once approved by the regulators, this cutting-edge digital technology is poised to capture the imagination of both investors and major pharmaceutical companies, eager to embrace transformative solutions in healthcare.
- BlinkLab is led by an experienced management team and leading experts in the field of machine learning, autism and brain development bridging the most advanced technological innovations with groundbreaking scientific research. The company is chaired by Brian Leedman, an experienced biotechnology entrepreneur and founder of ResApp Health, a digital diagnostic company recently acquired by Pfizer.
Key Technology and Applications
Neurobehavioral assays of brain function can reveal fundamental mechanisms underlying neuropsychiatric conditions, but typically require centrally located equipment in a laboratory test facility. Consequently, these tests are often unpleasant for participants as they require instruments attached to their face and cannot be used at scale in daily clinical practice, particularly with paediatric patients.
BlinkLab has developed a smartphone-based software platform, known as ‘BlinkLab Test, to perform neurobehavioural testing free from facial instruments or other fixed location equipment. This AI-based platform is designed to be used at home or in similar environments, independently or with the assistance of a caregiver, while following instructions from the mobile-device application. The tests include, but are not limited to, eyeblink conditioning (EBC), a form of sensory-motor associative learning, prepulse inhibition of the acoustic startle response (PPI), which measures the ability to filter out irrelevant information through sensorimotor gating, startle habituation, which measures the ability for the intrinsic damping of repetitive stimuli and sensory adaptation, and habituation of eye blink response, which serve as biomarkers for neurological and psychiatric disorders.
The BlinkLab App combines a smartphone’s ability to deliver stimuli and acquire data using computer vision with a secure cloud-based portal for data storage and analysis. In the experiments, each audio and/or visual stimulus is presented with millisecond-precise control over parameters such as timing, amplitude and frequency. To maintain participant attention, an entertaining movie of choice is shown with normalized audio levels. Participants’ responses are measured by the smartphone’s camera and microphone, and are processed in real time using state-of-the art computer vision techniques, fully anonymized, and transferred securely to the analysis portal. There, BlinkLab’s in-house AI/machine learning algorithms then perform clustering and statistical analysis to identify the prediction value of the experiment in the particular data set.
BlinkLab Test is initially developed as a prescription diagnostic aid to healthcare professionals (HCP) considering the diagnosis of ASD in patients 18 months through 72 months of age at risk for developmental delay. In collaboration with Princeton University in the US and Erasmus Medical Center in the Netherlands, the company has conducted several trials using BlinkLab test as an early assessment tool for autism. Autism represents a global challenge, with 1 in 44 children identified with ASD. With no early tests currently available to detect the condition, the majority of children are diagnosed with the condition as late as age five. Blinklab’s mobile app can aid in early detection. The child can watch their favourite movie or cartoon on the phone, and while they watch, the app will record their reactions, providing key information on the functioning of the brain. BlinkLab tests can help with early diagnosis of autism as early as age one-and-a-half, leading to timely intervention that can make a significant impact on the child’s development.
BlinkLab will be subject to regulatory oversight as a medical device and must clear clinical studies. Previous clinical trials done by Blinklab have shown an impressive success rate, achieving sensitivity of 85 percent and specificity of 84 percent. The company notes these trials are very similar to those required by US FDA and have shown a much higher accuracy compared to currently approved products.
In order for the BlinkLab Device to be used as a clinical aid in the diagnosis of ASD, BlinkLab will need to complete a pivotal registrational study and subsequently apply for FDA registration and reimbursement for the tests. The registrational study intends to recruit up to 500 subjects. Enrolments for this study will start during the second half of 2024, with study completion expected by mid-2025. The potential to participate in a disruptive and scalable AI-powered technology close to regulatory approval should attract attention from big medical technology companies.
BlinkLab is led by an experienced management team and directors with a proven track record in building companies and vast knowledge in digital healthcare, computer vision, AI and machine learning. The company’s chairman, Brian Leedman, is an experienced biotechnology entrepreneur and founder of ResApp Health, a digital diagnostic company for respiratory conditions, which was recently acquired by Pfizer for $179 million before reaching FDA approval for their main diagnostic product.
Key Management People
Dr. Henk-Jan Boele – Founder and Chief Executive Officer
Henk-Jan Boele is an assistant professor of neuroscience at the Medical Center of Erasmus University and a researcher at Princeton University. He obtained his PhD from Erasmus University in 2014. Boele has always been pushing scientific and methodological boundaries and received numerous government and industry grants in the field of neuroscience.
Peter Boele – Founder and Chief Technology Officer
Peter Boele holds a bachelor’s degree in history and philosophy from Leiden University. He has over 20 years of experience in software development and has worked with Erasmus University, Leaseweb, Kaboom Informatics and Insocial.
Dr. Anton Uvarov – Founder and Chief Operational Officer
Anton Uvarov holds a Ph.D. from the University of Manitoba and an MBA from the Haskayne School of Business. He has rich experience in bio-technology investments with a particular focus on neuroscience and has successfully led several IPOs. He started his career as a biotechnology analyst with Citigroup, US.
Dr. Bas Koekkoek – Founder and Chief Scientific Officer
Bas Koekkoek is an assistant professor at Erasmus Medical Center. Koekkoek has been working at the Department of Neuroscience mainly in the role of rapid prototype of new technology and techniques for neuroscience. He has numerous publications in the area of brain development including Nature and Science journals.
Professor Sam Wang – Founder and Chair of Advisory Board
Sam Wang holds a PhD from Stanford University. He is a professor of neuroscience at Princeton University, has published over 100 articles on the brain in leading scientific journals and has received numerous awards. He gives public lectures on a regular basis and has been featured in The New York Times, The Wall Street Journal, NPR, and the Fox News Channel.
Professor Chris de Zeeuw – Founder and Scientific Advisor
Chris de Zeeuw is chairman of the Department of Neuroscience at Erasmus MC in Rotterdam and vice-director at the Netherlands Institute for Neuroscience in Amsterdam. De Zeeuw has received over 100 grants, including the Pioneer Award from ZonMw and the ERC advanced grant. In 2006, he received the Beatrix Award for Brain Research from Her Majesty the Queen; in 2014, he became an elected member of the Dutch Academy of Arts & Science; and in 2018, he received the international Casella Prize for Physiology.
This article was written in collaboration with Couloir Capital.
AMD Raises AI Chip Sales Forecast in Light of Strong Q2 Results
AMD (NASDAQ:AMD) announced robust financial results for the second quarter of 2024 on Tuesday (July 30), highlighting increases in revenue and earnings primarily driven by its data center segment.
The company's revenue for Q2 reached US$5.84 billion, marking a 9 percent year-on-year increase. Its gross margin came in at 49 percent, while its operating income rose sharply by 1,445 percent to hit US$269 million.
Net income for the quarter was reported at US$265 million, translating to diluted earnings per share of US$0.16.
On a non-GAAP basis, AMD's performance was even stronger, with a gross margin of 53 percent, operating income of US$1.26 billion, net income of US$1.13 billion and diluted earnings per share of US$0.69.
Dr. Lisa Su, AMD's chair and CEO, credited the company's positive performance to record revenue in its data center segment and continued acceleration in its artificial intelligence (AI) business.
“Our AI business continued accelerating and we are well positioned to deliver strong revenue growth in the second half of the year led by demand for Instinct, EPYC and Ryzen processors,” she said in a press release.
“The rapid advances in generative AI are driving demand in every market, creating significant growth opportunities as we deliver leadership AI solutions across our business," Su added.
AMD's data center segment reported record revenue of US$2.8 billion, a 115 percent year-on-year increase, mainly driven by a sharp rise in AMD Instinct GPU shipments and robust growth in 4th Gen AMD EPYC CPU sales.
Meanwhile, the client segment saw a 49 percent year-on-year increase in revenue, reaching US$1.5 billion. It was driven by strong sales of AMD Ryzen processors. Sequentially, this segment's revenue grew by 9 percent.
In contrast, the gaming segment reported a revenue decline to US$648 million, down 59 percent year-on-year and 30 percent sequentially, mainly due to decreased semi-custom revenue. The embedded segment's revenue dropped by 41 percent year-on-year to US$861 million, although it saw a 2 percent sequential increase.
During H1, AMD expanded its AI solutions portfolio with new CPUs, GPUs, NPUs and software offerings.
Key announcements include an expanded AMD Instinct accelerator roadmap, the unveiling of the new AMD Instinct MI325X accelerator and the introduction of AMD Ryzen AI 300 Series processors for AI PCs.
In light of the company's positive performance and the expectation of increased chip sales, AMD has raised its expectations for Q3, projecting revenue of approximately US$6.7 billion, plus or minus US$300 million. That would represent year-on-year revenue growth of about 16 percent at the midpoint of the range.
AMD's share price spiked when trading opened on Wednesday (July 31), rising as high as US$151.23.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
Blinklab Partners with Mental Care Group in Europe to Improve and Accelerate the Diagnostic Evaluation of ADHD
Positive results from the initial, prospective ADHD clinical trial run by BlinkLab and MCG provides a strong foundation for clinical adoption.
BlinkLab Limited (ASX:BB1) (“BlinkLab” or the “Company”), an innovative digital healthcare company developing smartphone-based AI powered neurometric tests to aid in the diagnosis of neurodevelopmental conditions, is pleased to announce a major research and clinical partnership with Mental Care Group (MCG) in The Netherlands.
Highlights
- Strategic partnership with the fifth largest outpatient mental health care provider in Europe.
- Partnership formalised following successful outcomes of a pilot study led by Mental Care Group that validated Blinklab’s technology in a clinical setting.
- Initial prospective study in 184 participants showed that children with ADHD have significantly heightened sensory sensitivity, which can be objectively quantified by measuring the rate and amplitude of sound-evoked eyelid responses using the BlinkLab app.
- Partnership will accelerate BlinkLab’s path to European and US regulatory approval for ADHD and clinical adoption. Data collected from the current clinical trial will be used as part of a large global ADHD study conducted by BlinkLab.
- Blinklab and MCG will scale up the rollout and validation of the solution in the coming years to a broader patient group and additional diagnosis.
About Mental Care Group
Mental Care Group is the largest outpatient mental health care provider in the Netherlands and fifth largest in Europe. With 150 locations it includes a national network of psychologists, psychotherapists and psychiatrists serving over 80,000 patients annually. Leveraging its extensive knowledge and experience in Dutch mental healthcare, MCG focuses on all aged groups. The care offered includes treatments for anxiety disorders, depressive complaints, post-traumatic stress disorders (PTSD), ADHD and autism.
As a pioneer in e-health, MCG provides patients with multiple digital applications, including online enrolment, intake, and an extensive e-health library. Additionally, a segment of their patient base benefits from online or blended treatments. In partnership with BlinkLab, MCG envisions a transformative future where medical technology, AI, and digital applications revolutionize the prediction, diagnosis, and early intervention of healthcare needs. An example of the innovation is the patient portal that MCG developed in-house and went online this week. This collaboration aims to offer innovative treatment and support methods, enhancing patient outcomes and setting new standards in mental healthcare.
European Regulatory Approval and Clinical Adoption
BlinkLab and MCG will work together to obtain regulatory approval for the diagnostic application, and to accelerate the path to clinical adoption and reimbursement. The current study conducted in the Netherlands potentially could be used as part of the global ADHD study with BlinkLab opening additional recruitment and testing.
Click here for the full ASX Release
This article includes content from Blinklab Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Study with Columbia University on Spinocerebellar Ataxias
Partnership aligns with BlinkLab’s strategy to enhance its AI-powered digital platform for sensory phenotyping and promote global adoption.
BlinkLab Limited (ASX:BB1) (“BlinkLab” or the “Company”), an innovative digital healthcare company developing smartphone-based AI-powered diagnostic tests for neurological disorders, advises it will be participating in a clinical study in patients with spinocerebellar ataxias conducted by Columbia University, New York.
Highlights
- New study in partnership with Columbia University, New York, to study the effect of aerobic physical exercise on neuroplasticity in adults with spinocerebellar ataxias (“SCA”).
- Potential to demonstrate that the BlinkLab eyeblink conditioning test can serve as an effective biomarker for neuroplasticity in human SCA patients.
- Partnership will contribute to global adoption of the BlinkLab platform by world renowned centres and research institutions to study a variety of neurological disorders.
- Study will continue for up to 18 months and will recruit up to 62 adults with SCA.
- Collaboration agreement ensures that BlinkLab will have an option to exclusively licence any intellectual property developed as a direct result of the partnership.
“Since the very first successful test of the BlinkLab platform in the lab at Princeton University, our team’s vision has always been to develop a tool that will someday be considered as a standard of care in the initial diagnosis of neurodevelopmental conditions where children have difficulties in processing sensory information, such as autism and ADHD. However, as a team of scientists we also envisioned the development of a research platform that would facilitate groundbreaking digital sensory phenotyping in neuropsychiatric conditions in a much broader sense. In the past few months we have made significant progress towards this goal as evident from the adoption rate of our technology among top researchers across a broad range of neuropsychiatric clinical disciplines. We know that research adoption will smoothen clinical adoption. Data generated from these studies will further inform our machine learning training and ensure BlinkLab remains the leader in the field of digital sensory phenotyping in humans.”
What is Spinocerebellar Ataxia?
Spinocerebellar ataxias are a group of disorders in which progressive cerebellar degeneration leads to severe disability and even death. An estimated 150,000 Americans are living with these diseases1, and the average annual healthcare cost to the United States is over 1.9 billion dollars2. There are currently no effective treatments or cures for genetic causes of these diseases. Thus, there is a critical need to find treatments that slow disease progression and allow affected individuals to live more functional lives.
Researchers at Columbia University Medical Center demonstrated that aerobic training is a promising treatment for spinocerebellar ataxias, but the mechanism of action is not fully understood. Training may increase leg strength and endurance which allow compensation for balance deficits, but may also cause neuroplastic changes in the brain that are of benefit. In fact, long-term aerobic training in healthy individuals has been shown to create a fertile brain environment by increasing expression of plasticity-related genes and growth factors to support subsequent learning.
Prior work with in-person laboratory assessments has shown that individuals with spinocerebellar ataxia have impaired eyeblink conditioning, poor retention of learning, and difficulty increasing learning capacity across multiple training sessions. There are no published studies in humans examining the impact of exercise training on eyeblink conditioning, but a few animal studies have been conducted. Experimental animals that perform aerobic exercise are able to condition (i.e. associative learning tasks) significantly better than sedentary rats.
Dr. Scott Barbuto, Columbia University, commented on the study:
”The current study will investigate the impact of acute and long-term aerobic training on eyeblink conditioning in individuals with spinocerebellar ataxia. The aim of this study is to demonstrate that aerobic training, but not balance training, causes neuroplastic changes in the cerebellum to enhance motor learning. Eyeblink conditioning has had limited use in clinical studies and is used more often in basic science research. Reasons for limited use include: the high cost of the standard equipment setup needed to test eyeblink conditioning and the need for extensive programming and data management skills to acquire and interpret data. Some studies have been conducted on individuals with spinocerebellar ataxia, but sample sizes are typically very small, ranging from 8-24 participants. With the use of BlinkLab, we will be able to test many individuals with ataxia and determine if differences exist between various types. We will also determine if exercise impacts eyeblink conditioning in individuals with ataxia, a topic that has not been investigated to date.”
Click here for the full ASX Release
This article includes content from Blinklab Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
TSMC Boosts Revenue Expectations as US Policy Concerns Weigh on Chipmakers
Industry-leading chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE:TSM,TPE:2330) released its Q2 results, reporting a 36.3 percent net income jump year-on-year.
The company, whose clientele includes market behemoths Apple (NASDAQ:AAPL) and NVIDIA (NASDAQ:NVDA), continues to benefit from surging demand for artificial intelligence (AI) chips.
It reported consolidated revenue of 673.51 billion New Taiwan dollars (approximately US$20.82 billion), reflecting a 40.1 percent year-on-year increase and a rise of 13.6 percent from the previous quarter.
TSMC's net income rose by 9.9 percent from the first quarter, hitting 247.85 billion New Taiwan dollars.
“Our business in the second quarter was supported by strong demand for our industry-leading 3nm and 5nm technologies, partially offset by continued smartphone seasonality,” said Senior Vice President and CFO Wendell Huang.
Huang added that moving into the third quarter, the company aims to leverage growing demand for AI-related services, including smartphones, high-performance computing and generative AI. To meet this demand, TSMC has launched new factories overseas, including three planned in the US and one in Japan that opened this year.
During the second quarter, the company briefly broke the US$1 trillion market capitalization barrier, putting it ahead of Elon Musk's Tesla (NASDAQ:TSLA) as the seventh most valuable technology firm.
Looking forward to Q3, TSMC expects revenue of US$22.4 billion to US$23.2 billion.
Trump comments on Taiwan hurt chipmakers
Shares of TSMC took a hit on Wednesday (July 17) after former US President Donald Trump suggested that Taiwan "should pay (the US) for defense" since it "does not give (the US) anything."
After closing on Tuesday (July 16) at US$186.14, TSMC fell as low as US$171.16 on Wednesday. It sank even further on Thursday (July 18), reaching US$166.14 before finishing the day at US$171.81.
Other major semiconductor companies also saw significant share price drops.
Declines were further exacerbated by reports that the Biden administration is mulling strict curbs on firms allowing China access to advanced chip technology. Taiwan produces more than 90 percent of the world’s most advanced chips, primarily through TSMC, making it a critical player in the global semiconductor supply chain.
Addressing concerns, TSMC Chairman and CEO C.C. Wei told reporters on Thursday, "So far we did not change any of our original plans of expansion of our overseas fabs. We continue to expand in Arizona, in Kumamoto, and maybe in future in Europe. No change in our strategy. We continue in our current practice."
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
ASX AI Stocks: 5 Biggest Companies in 2024
Artificial intelligence (AI) continues to evolve and advance rapidly, becoming increasingly integrated in the automation of everyday life and a focal point of growth in the technology sector.
AI is also becoming a major focus for the Australian government, whose budget for the 2023/2024 fiscal year outlines a plan to invest AU$101.2 million in AI development and adoption over the coming years. That includes AU$17 million announced in December 2023 to fund up to five AI Adopt Centres for small- and medium-sized businesses.
According to a September 2023 report from IDC on worldwide AI spending, Australia, along with Korea and India, is leading the Asia-Pacific region in spending on AI solutions; the three countries are also leading when it comes to AI adoption in the area. Spending in the region, excluding Japan and China, is expected to reach US$28.2 billion by 2027.
Although the AI market is relatively small in Australia, it’s growing. To help investors understand the options available, the Investing News Network used TradingView's stock screener to find the top AI stocks on ASX by market cap. All ASX AI stocks data was current as of July 11, 2024; companies whose business is focused mainly on AI were considered.
1. NextDC (ASX:NXT)
Market cap: AU$11.08 billion; current share price: AU$18.33
NextDC is Australia’s leading data centre operator, with 13 functioning centres throughout Australia, New Zealand, Malaysia and Japan, and nine more currently in the works. NextDC has expressed its commitment to improving Australia’s digital infrastructure with multiple business and academic partnerships.
This past August, NextDC announced it would be partnering with Microsoft (NASDAQ:MSFT), as well as well-known Australian mining and telecommunications groups, to bring a state-of-the-art data centre to Pilbara, Western Australia. Then, in November 2023, the company officially broke ground on an AU$80 million data centre in Darwin as part of an action plan to improve the digital infrastructure in the Northern Territory. A new construction project to build a data centre in Adelaide was announced on June 12.
NextDC also revealed last September that it would be partnering with La Trobe Business School’s Research Centre for Data Analytics and Cognition on research into future theoretical and practical applications of AI across a range of industries.
2. BrainChip (ASX:BRN)
Market cap: AU$366.85 million; current share price: AU$0.195
BrainChip is the company behind akida, a revolutionary digital neuromorphic chip that’s built with a spiking neural network, a type of artificial network that mimics the way messages are passed between neurons in the human brain.
Because the AI is inside the chip, the chip is able to learn on its own and is not reliant on the cloud or other networks. This makes it much more secure and reduces latency as well.
On June 5, the company released a white paper for its newly developed technology called TENNs-PLEIADES, an efficient AI processor that can perform complex tasks like decision-making, object recognition and data analysis. Unlike akida, this chip is designed for spatiotemporal classification and detection using event-based data, making it particularly well-suited for low-latency applications such as self-driving cars.
3. Appen (ASX:APX)
Market cap: AU$101.47 million; current share price: AU$0.465
Appen began in 1996 as an automated speech recognition startup by a couple based in Sydney, New South Wales. Today, the company operates as a trusted partner to firms transitioning to AI usage, with a suite of industry-specific large language models and AI-training products.
Appen has struggled in recent years to retain its market share as generative AI has increased in popularity. In January, long-time partner Alphabet (NASDAQ:GOOGL) cut ties to focus on in-house AI.
As its share price is down significantly from its peak at the beginning of this decade and revenue was down in 2023, this stock could be risky. Interested investors should perform their due diligence and keep a close eye on upcoming results. On June 24, the company announced that its H1 2024 results for the period ending June 30 will be shared on August 30. In a subsequent press release, Appen shared that it would be issuing new shares as part of a strategic move to raise additional capital and expand its presence in the AI market.
4. Bigtincan Holdings (ASX:BTH)
Market cap: AU$92.44 million; current share price: AU$0.15
Bigtincan Holdings is a sales platform that uses AI to help companies improve their customers’ buying experience by making the process more efficient and personalised. Bigtincan’s list of partners includes Apple (NASDAQ:AAPL), Adobe (NASDAQ:ADBE), SalesForce (NYSE:CRM) and Microsoft (NASDAQ:MSFT).
5. AI-Media Technologies (ASX:AIM)
Market cap: AU$79.35 million; current share price: AU$0.44
AI-Media Technologies is a global media access provider with operations in four key regions: Australia and New Zealand, North America, EMEA (Europe, Middle East, and Africa), and Asia. It was founded in 2003 by Tony Abrahams and Alex Jones, who was born deaf.
The company uses AI to transcribe speech, making media accessible to all and is now one of the world’s leading caption and translation providers. AI-Media technologies began trading on the ASX on September 15, 2020.
FAQs for investing in AI
What is artificial intelligence?
AI is defined as human intelligence exhibited by machines. The development of graphics processing units with faster and more powerful chips has supported the emergence of AI technologies.
Where is AI used?
AI has been heralded as a technology of the fourth industrial revolution, with heavy investment from industries including transportation, manufacturing, education and agriculture. Some of the sectors that will likely see the fastest AI investment growth in the coming years are healthcare, pharmaceutical research, retail, industrial automation, finance and intelligent process automation.
How to invest in AI stocks?
Investors looking to capitalise on AI's growth potential have a number of entry points when it comes to stocks. It's key for each person to practise due diligence and speak to their broker to determine the most suitable investments.
The companies listed above have a strong focus on AI, but investing in companies that are using AI as part of a larger business model is one way to gain indirect exposure to the sector. Examples of stocks like this on the ASX include Block (ASX:SQ2), WiseTech Global (ASX:WTC), Seek (ASX:SEK) and Xero (ASX:XRO).
For a more diversified approach, the Betashares Global Robotics and Artificial Intelligence ETF (ASX:RBTZ) invests in companies involved in the development of AI applications all across the globe. Investing in an exchange-traded fund is a low-cost way to benefit from a sector without directly buying individual stocks.
This is an updated version of an article first published by the Investing News Network in 2020.
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Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
AI Market Update: Q2 2024 in Review
The artificial intelligence (AI) industry has experienced both remarkable growth and turbulence in Q2.
Events such as a tech selloff on April 19, triggered by stubbornly high inflation data and the US Federal Reserve's reluctance to lower interest rates, sunk the S&P 500 (INDEXSP:INX) below 5,000 for the first time since February, highlighting the influence the sector has on the overall economy.
Goldman Sachs' (NYSE:GS) prime brokerage report found that the group of companies leading the AI revolution, known as the Magnificent 7, accounted for 20.7 percent of hedge fund net exposure to US stocks following Nvidia’s Q1 results on May 22.
Despite setbacks, investor enthusiasm for the potential of AI technology has remained strong. Following the mid-April decline, major indexes trended steadily upward for the remainder of the quarter, reaching record-breaking closes the week ending on June 14. Further, Crunchbase data showed that AI startup funding more than doubled in Q2, indicating a strong appetite for innovation and a belief in the transformative potential of AI technology.
However, the potential for AI monetization remains unclear and requires further exploration. Furthermore, fears of overconcentration in the semiconductor industry were compounded after an earthquake struck Taiwan at the start of the quarter, causing supply chain interruptions as Taiwan Semiconductor Manufacturing Corporation (TSMC) (NYSE:TSM), the primary chip supplier for AI-focused tech companies, was forced to halt operations. Micron Technology (NASDAQ:MU) said the earthquake would hurt the calendar quarter of its DRAM supply as its four Taiwanese locations were also affected.
Gary Marcus, a prominent AI researcher, expressed concerns about the potential burst of the generative AI bubble in an article published just days before the disaster. He cited issues such as lack of profitability, security concerns and overconcentration in the semiconductor industry as potential catalysts.
Fueling innovation: Financing and investment in the AI sector
The AI startup landscape witnessed a surge in fundraising activities in Q2.
In early April, Reuters announced Elon Musk’s efforts to raise US$3 billion in a funding round that would have brought his startup xAI’s total valuation to US$18 billion. The story was unconfirmed at the time; however, a US$6 billion Series B funding round was announced on xAI’s website a month later, after which the company was valued at US$24 billion.
Meanwhile, Perplexity, an AI-powered search engine that could one day rival Google, held a US$62.7 million funding round that brought its valuation to US$1 billion on April 23. At the same time, the company launched Enterprise Pro, a solution designed for organizations looking to increase their productivity.
Additionally, major tech companies pursued partnerships and investments in promising AI startups, including OpenAI, the company behind ChatGPT. In April, OpenAI raised $300 million in funding and announced a collaboration with Reddit (NYSE:RDDT), providing the platform access to its AI technology in exchange for Reddit's content.
Adobe (NASDAQ:ADBE) also announced its intention to collaborate with OpenAI and other startups, such as Runway and Pika Labs, aiming to bring generative AI capabilities to Adobe Premiere Pro. Similarly, Apple's (NASDAQ:AAPL) acquisition of Datakalab was reportedly struck to enhance its product line with on-device generative AI. AI features were revealed at its World Wide Developers Conference event in June, where Apple also officially announced its partnership with OpenAI to integrate ChatGPT within iOS, iPadOS and macOS.
Prominent AI hardware provider NVIDIA (NASDAQ:NVDA) partnered with Alphabet (NASDAQ:GOOGL) to offer up to US$350,000 in Google Cloud credits to startups in NVIDIA's Inception program, a virtual incubator program designed to support and nurture AI startups.
Governments also provided various incentives to promote the development and growth of the AI industry. TSMC received a US$6.6 billion subsidy from the Commerce Department to build a production facility in Phoenix, while Micron was granted US$6.1 billion in chip grants to build factories in New York and Idaho. Intel’s (NASDAQ:INTC) US$28 billion chip factory, Ohio One, which could potentially be the world’s largest chip factory, also received government funding.
In addition, the Canadian government has shown commitment to reinforcing the country’s AI sector, with Prime Minister Justin Trudeau announcing a C$2.4 billion investment package from Budget 2024.
Addressing Challenges in the AI Industry: Managing Investor Expectations, Quarterly Results, ROI, and Data Center Expansion
With billions of dollars at stake, the recent unveiling of AI products by tech giants has had a significant impact on their quarterly results. OpenAI's GPT-4, Google's AI-powered Chromebooks Plus, Apple's AI-powered iPad and Microsoft's (NASDAQ:MSFT) Copilot+ PCs have set the stage for an AI-driven revolution in consumer technology.
As an example, Dell Technologies' (NYSE:DELL) financial results for its first fiscal quarter of 2025 were objectively solid, with 6 percent revenue growth compared to last year and an increase in AI-optimized server orders and shipments. However, despite these positive results, Dell's share price fell by over 15 percent in after-hours trading, with the decline attributed to the fact that investors had expected even stronger growth from the company.
AI-related revenue bolstered Amazon (NASDAQ:AMZN) and Broadcom’s (NASDAQ:AVGO) quarterly results, with Amazon shares hitting a new record high of US$189.05 on April 11 after its Q1 earnings showed a 235 percent rise in net income year-on-year. This marked a significant milestone for the company at the time, and its share price continued to climb – as of July 16, it is trading at US$193.02.
Broadcom’s results for its second fiscal quarter of 2024 also showed a surge of 280 percent in AI-related revenue, and the company announced that a 10-for-1 stock split would take place on July 15.
The volatility of AI stocks was on full display toward the end of April with the industry’s major players experiencing significant swings in their share prices.
NVIDIA and Super Micro Computer (NASDAQ:SMCI) led a tech selloff on April 19 when Super Micro failed to deliver a positive pre-announcement of its Q3 results. NVIDIA, a strategic collaborator of Super Micro, saw its share price fall in tandem below its 50-day moving average, and the company experienced its steepest decline since March 2020.
Days later, Super Micro, which had joined the S&P 500 only one month prior, plummeted 23 percent, leading analysts to speculate whether AI’s run could be showing signs of winding down. The company’s results added fuel to these worries when it missed revenue estimates for Q3 and saw its shares drop 14 percent in after-hours trading.
Despite the earlier challenges, NVIDIA had its best weekly performance in almost a year during the week that ended on April 26, when its share price rallied 15 percent on the heels of quarterly reports released by Meta (NASDAQ:META), Microsoft and Alphabet. All three companies announced plans to spend more on AI in the coming year; however, only Meta — whose Q1 results were released in close succession to Llama 3 and the addition of multimodal AI to its Ray-Ban Smart Glasses — saw a drop in share price due to weaker Q2 revenue guidance coupled with higher expenditure. The stock’s price fell by 14.74 percent.
Alphabet announced its first dividend and a US$70 billion stock buyback upon the release of its Q1 results, bringing its share price up by 10 percent and driving the market cap above US$2 trillion, its highest valuation since November 2021.
Apple and Microsoft also reported strong financial performances. Apple's Q2 results included a record-breaking US$110 billion share buyback program, demonstrating the company's commitment to shareholder value. Meanwhile, Microsoft's Q3 results revealed a robust 17 percent year-over-year revenue increase.
NVIDIA's upward trend continued as it announced Q1 2024 results and a June 7 stock split — potentially making it eligible for a spot on the Dow Jones Industrial Average — on May 22. Subsequently, NVIDIA surpassed Apple as the second most valuable company on June 5, achieving a market cap of US$3.02 trillion.
Rising Challenges: Chip Shortage, Geopolitical Tensions, and Power Consumption
The rapid growth of AI and the increasing demand for data-intensive applications have led to a surge in data center construction and a significant increase in electrical utility demand. Rene Haas, CEO of Arm Holdings (NASDAQ:ARM), told Bloomberg that AI computing's energy consumption is projected to surpass the electrical use of India by 2030.
With those dynamics in mind, Amazon and Alphabet have announced significant investments in data center infrastructure, with Amazon investing US$11 billion in Indiana and Alphabet planning a US$3 billion investment for data centers in Indiana and Virginia.
These data centers require vast amounts of energy to power their servers, cooling systems and other infrastructure, contributing to the overall strain on electrical grids. As AI continues to advance and more data-driven technologies emerge, the demand for electrical power by data centers is expected to further escalate, with South Korean electrical equipment manufacturers such as Hyundai (KRX:005380), Hyosung (KRX:004800) and LS Electric (KRX:010120) witnessing significant gains in their share prices as a result.
However, the demand poses challenges to energy providers and necessitates innovative solutions for sustainable power generation and distribution, prompting the establishment of the Federal AI Safety and Security Board. The board is comprised of prominent figures like NVIDIA's Jensen Huang and OpenAI’s Sam Altman, who will help guide the responsible development and deployment of AI technologies, including addressing the associated challenges of increased electricity consumption.
The subsequent surge in power consumption has brought the energy efficiency of computer chips into sharper focus. Google, for instance, unveiled Axion, an Arm-based data center processor, aimed at improving energy efficiency in data centers, along with a new version of its own AI chip.
The push for efficiency extends to the manufacturing process as well. TSMC is planning a new generation of technology called A16, which is expected during the second half of 2026. The company says the technology will allow it to produce chips without using ASML’s (NASDAQ:ASML) High NA EUV machine, which can reportedly build powerful chips more efficiently.
TSMC also had a good quarter, reporting its fastest monthly revenue growth since 2022 in March. The chipmaker's Q1 results, released on April 18, beat market expectations in quarterly net profit by 9 percent, with growth expected to continue as demand for chips increases.
Looking ahead
Overall, the second quarter of 2024 has been marked by notable developments in the technology sector. While companies reported strong financial results, the industry faces antitrust lawsuits across various jurisdictions. The outcomes of these legal proceedings and the potential impact on the competitive landscape remain to be seen, emphasizing the importance of monitoring the evolving regulatory environment in the coming months.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
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