Visible Alpha’s AI Monitor

Stay Ahead with Cutting-Edge AI Insights and Trends

Welcome to the forefront of AI analytics. Visible Alpha’s AI Monitor delivers unparalleled insights into the rapidly evolving landscape of artificial intelligence. Our monthly analyses and real-time monitoring tools empower professionals and enthusiasts alike to stay informed and ahead in the dynamic world of AI.

AI growth and performance overview

Discover the rapid advancement of AI through our focused analysis on growth trends and performance metrics. Gain insights into key developments and industry benchmarks in the dynamic AI landscape.

Top 10 breakdown of AI-exposed revenue expectations

Unveil the forefront players in AI with a detailed breakdown of the top 10 companies leading in AI-exposed revenue. Explore their expectations, strategies, and how they’re shaping the future of AI-driven profitability.

AI Monitor detailed breakdown

Explore the core of our AI Monitor with an extensive and detailed breakdown. Uncover nuanced insights and in-depth analytics that reveal the intricate dynamics of the AI industry. This module provides a thorough understanding of the current AI landscape and its future potential.

The Visible Alpha AI Monitor Push Towards Enterprise Adoption

The Visible Alpha AI Monitor: A Push Towards Enterprise Adoption

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Expert AI Analysis

Our experts dissect the latest AI Monitor data, offering detailed analysis and commentary in our blog. Gain expert perspectives to complement the raw data and understand what it means for the future of AI.

AI Monitor Goals and Objectives

The objective of the Visible Alpha AI Monitor is to show the investment community which companies are likely to drive AI going forward. As the world embraces AI and its applications to enterprise workflows and our daily lives, big questions exist about how AI’s impact on company business models will unfold over the next 3-5 years. AI can potentially free people from tedious work to enable more focus on critical workflows that require human creativity and analysis.

A primary goal of the Visible Alpha AI Monitor is to show which U.S. companies and specific line items we are keeping an eye on as the embryonic AI theme emerges across company fundamentals and begins to scale broadly across the economy. We are monitoring how AI may be reflected in the numbers and which companies may be benefitting more or less. This universe attempts to be comprehensive and to show investors the dynamics of both the large and smaller U.S. players. Additionally, it aims to help investors identify new names that may be smaller and less covered, but potentially growing and emerging more quickly.

AI Monitor Methodology

Using Visible Alpha’s comprehensive database of detailed estimates pulled directly from sell-side analysts’ spreadsheet models, we have assembled an aggregation with a universe of 69 publicly-traded companies that are contributing to the infrastructure and broad scaling of AI capabilities. This monitor aims to provide a current and future snapshot as to where AI-related revenues are and are not growing across each of these 69 companies, and particularly the 10 largest.

We have aggregated the revenues of specific business segments at firms that are driving the wider AI trend. For larger firms, we have attempted to pinpoint where in their revenue model AI is driving growth. For some smaller firms, we are simply incorporating 100% of revenues. The AI-exposed revenue lines we identify are intended to be used as a proxy for monitoring the growth of each company’s AI business. Given both lack of discrete company disclosures and how intertwined AI and conventional technologies and services can be, these lines should not be taken as exact quantifications of AI revenues, but are, we believe, the best systematic approximation available.

The AI Monitor provides three measures of stock performance for its universe. These metrics are meant to show the returns of various weighting schemes. The returns are calculated on both an equal-weighted and market-cap weighted basis. The universe performance of the AI Monitor is also weighted based on AI-exposed revenues and calculated in aggregate. From 2024, the return calculations were standardized and market-cap-weighted now reflects year-over-year changes.

For Visible Alpha subscribers, details of these companies can all be found within the Visible Alpha Insights platform. Each company included in the monitor has coverage by at least four sell-side analysts. In addition, given the quickly evolving state of the AI space, these line items are subject to change and may shift significantly over time. We plan to refresh the data on an ongoing basis and provide regular updates.

AI Monitor Frequently Asked Questions

What does the AI Monitor measure?

We have assembled a universe of publicly traded companies contributing to the infrastructure and broad scaling of AI capabilities. The AI Monitor measures AI-exposed revenues of publicly traded U.S. companies, tracking growth trends and how these revenues impact business models across various industries within the technology sector. This monitor aims to provide a current and future snapshot as to where AI-exposed revenues are and are not growing across each of the companies, and particularly the ten largest.

What can the AI Monitor be used for?

A primary goal of the Visible Alpha AI Monitor is to show which U.S. technology companies and specific line items we are keeping an eye on as the embryonic AI theme emerges across company fundamentals and begins to scale broadly across the economy.

Investors, corporates, and sell-side analysts can use the AI Monitor for insights into which companies are both potentially leading and/or seeing an upward shift in AI-exposed revenue growth, helping them make informed investment decisions and understand the broader impact of AI. Additionally, it aims to help investors identify new names that may be smaller and less covered, but potentially growing and emerging more quickly.

How are line items selected and classified as AI-exposed?

After conducting a comprehensive deep search both within the Visible Alpha Insights platform and on the SEC’s EDGAR filings, we identified a list of companies contributing to the foundation for scaling AI more broadly, especially concerning generative AI applications. We then read through the filings, transcripts, and earnings releases of each company to determine how these new initiatives may be captured in specific line items on the Visible Alpha platform.

Given both the lack of discrete company disclosures and how intertwined AI and conventional technologies and services can be, these lines should not be taken as exact quantifications of AI revenues. Rather, they are, we believe, the best systematic approximation available.

How are AI-exposed revenues weighted in the AI Monitor?

The weighting of AI-exposed revenues is calculated based on the amount of AI-exposed revenues relative to total revenues. The values of the AI-exposed revenue portions are then aggregated. The AI-exposed specific company weights are based on the AI-exposed revenue portion relative to the total amount of AI-exposed revenues across the AI Monitor universe. For example, if a company has $10 billion of AI-exposed revenue out of $15 billion in its total revenue, and the total amount of revenue for the universe of AI-exposed companies is $100 billion, then the weight is 10%.

How does Visible Alpha ensure the accuracy and reliability of its AI-related revenue data?

Visible Alpha employs a combination of advanced data analytics, expert analysis, and collaboration with industry experts to validate and ensure the quality of the data. Additionally, constant updates and revisions in response to new company disclosures and market developments help maintain data accuracy over time.

What specific criteria or definitions does Visible Alpha use to classify revenues as AI-related?

Visible Alpha defines AI-related revenues through a detailed review of company offerings, segment reporting, and specific product or service revenues directly tied to AI technologies. The classification involves an in-depth understanding of each company’s business model within the AI universe and how AI contributes to their revenue streams.

Can I find the AI-exposed revenue lines of data on Visible Alpha Insights?

Visible Alpha’s Insights platform provides detailed financial data, including AI-exposed revenue lines, for companies covered by the AI Monitor. Users can find this data when they are looking at a specific company within the AI monitor universe by searching for “AI-exposed.” The company’s AI-exposed revenues will show up as standardized data. Users can click through to see the exact area(s) of the business this data is coming from.

In addition, users can see companies compared side-by-side by clicking ‘My Insights’ and going to the ‘Sectors and Industries’ page. Scroll to the bottom of this page and click ‘Cross Sector’ and you will see ‘AI-exposed’. This provides a complete list of all the companies within the AI Monitor, the AI-exposed revenue line and valuation metrics.

Can users customize the AI Monitor to track specific companies or AI technologies of interest?

Visible Alpha provides various tools and filters that allow users to tailor their research and analysis to specific interests. This can include selecting certain sectors, companies, or focusing on particular AI applications. Visible Alpha Insights users are able to create personalized dashboards or reports that highlight the AI revenue trends most relevant to their investment strategies or research interests, through the use of our Excel Add-in or activating unparalleled data control through the use of an API, data feed, or connection to Snowflake.

Jul 24, 2024

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Visible Alpha’s AI Monitor

Stay Ahead with Cutting-Edge AI Insights and Trends

AI growth and performance overview

Top 10 breakdown of AI-exposed revenue expectations

AI Monitor detailed breakdown

The Visible Alpha AI Monitor: A Push Towards Enterprise Adoption

Expert AI Analysis

AI Monitor Goals and Objectives

AI Monitor Methodology

AI Monitor Frequently Asked Questions

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