As the artificial intelligence (AI) sector continues to expand, Australian investors are increasingly looking to capitalize on this growth through specific funds and stocks. However, AI funds allow investors to get exposure to a range of companies. Rather than select a handful of companies, the Defender AI fund focuses on a handful of companies that offer a range of services. In this article, we highlight the Defender AI Fund and two stocks that operate in the sector. This article provides an overview of the Defender AI fund and two stocks in the sector. We show that it is possible to get exposure in a range of companies even as there are individual stocks that perform well.
Defender AI
Defender AI is at the forefront of AI innovation in Australia, focusing on improving cybersecurity through advanced machine learning algorithms and providing a range of solutions such as dream analysis and interpretation and cloud services through Sharon AI. The fund primarily invests in companies that develop AI-driven security solutions, making it a compelling choice for investors seeking exposure to the growing demand for AI-related companies that provide real value to their users. Defender Ai has several companies in its portfolio, which include;
- Stock Piper: This is a platform that uses AI to analyze stock market trends and provide investment recommendations to all types of investors. It selects the most topical and useful trends, stocks, and news to ensure that investors and asset managers can make informed investment decisions. Their low-cost strategy enables them to provide useful ad-ons to sites like Motley Fool Australia.
- Interpretr: Dream analysis is increasingly used in psychoanalysis and by individuals. It has the potential to scale across a range of countries, presenting investors with a unique service that can scale substantially.
- Sharon.Ai: Focused on creating personalized AI-driven customer experiences, enhancing engagement and satisfaction. It provides cloud-based media technology and on-demand GPU infrastructure for a range of start-ups and companies. By leveraging partnerships with Nvidia and Lenovo, they facilitate significant advancements in data processing and storage for their clients.
- Supportr.ai: Provides AI-based support solutions for businesses, streamlining customer service operations. They can be used for data collection in the public and private sectors, supporting informed decision-making at all levels of business.
Life360 Inc (ASX: 360)
Life360 is emerging as a leader in the ASX AI space, illustrating how AI can be used to improve safety and connectivity for families worldwide. The company’s mobile app integrates various AI tools that provide real-time location updates and safety alerts, making it useful for millions of consumers across the board. Life360’s share price surged from $7.60 to $16.37 over FY24, marking a remarkable increase of over 115% in the last year. They equally reported a 15% year-over-year revenue increase in Q1, driven by higher premium subscriptions. The company is distinct from others due to its strong focus on user data and insights, positioning it for future growth as it continues to innovate its offerings.
Megaport Ltd (ASX: MP1)
Megaport operates within the Network as a Service (NaaS) model, providing crucial infrastructure for businesses that are adopting new technologies, including AI. Growing demand for its services has seen it experience significant growth. Furthermore, Megaport’s share price increased from $7.22 to $11.22 over the past year, reflecting a total gain of 55% over the last year. Looking at sales growth, the company reported a 30% year-over-year increase in sales, indicating robust demand for its services. As it plans to enter new markets and improve its platform, we expect revenue to continue to grow.
Conclusion
The Australian market presents several promising opportunities for investors interested in artificial intelligence. Funds like Defender AI are leading the charge by investing in innovative companies that leverage AI technology across various sectors. However, there are equally established players such as
Life360 and Megaport, demonstrating substantial returns for the strategic implementation of AI solutions. Investing in a single stock comes with significant risk, hence the need to diversify by investing in a fund that is comprised of a range of companies ranging from cloud computing to voice assistance.
