Innovation has reordered established industries and created new ones. For investors, these developments have created tremendous opportunities. Investor interest in these trends tightened last year, though growth potential remains high. These include applied AI, next-generation software development, EVs, blockchain technology and more. These are “satellites” to the core of a diversified portfolio.

Internet of Things

Thanks to super-cheap computer chips and wireless networks, almost any physical object can be fitted with sensors that communicate real-time data. It makes everything from kitchen appliances to cars to smart homes more intelligent, allowing them to respond quickly to changes without human intervention. IoT also gives companies valuable operational data and helps reduce maintenance costs. It can even prevent outages by sending alerts before they happen. A tech sector on a strong growth track, Internet of Things technologies range from smart devices such as smart home appliances and fitness wearables to self-driving cars and factory robots. They’re also transforming fields like urban planning and consumer data collection by connecting to solve real problems. Investors in tech companies should look beyond how numbers on a spreadsheet change quarter to quarter. Instead, they should concentrate on whether a business has a solid long-term strategy for future expansion underpinned by new technology themes. According to David Adelman Darco Capital, investing in cutting-edge technologies is necessary for future-proofing. 

Artificial Intelligence

Innovating technology catalyzes secular shifts in markets. Cloud computing allows entrepreneurs to build and scale disruptive businesses. Data analytics solutions and artificial intelligence support decision-making and performance. Weak AI helps improve products and services. Strong AI has the potential to transform industries and society.

Many companies use AI to improve customer service, reduce costs and outperform competitors. For example, chatbots can answer customer questions in their native language and detect fraud. Leading cloud providers offer AI to streamline data prep, model development and application deployment. In addition, generative AI tools can automate software coding and IT processes. It’s important to understand that not all AI is equal. Some types, known as weak AI, don’t learn from experience and may reflect their training data or other biases.

Robotics

Robotics are transforming the economy and creating new investment opportunities. Technological advancements in AI, machine learning, and sensor technology enable robots to become more efficient, versatile, and affordable.

Cybersecurity

Tech companies that develop and benefit from the proliferation of new technologies can generate significant profits. It is particularly true for emerging technologies with shorter investment time horizons that can resist the effects of rising interest rates. For example, information security technology protects business data from cyberattacks. Cybersecurity also includes IoT security, which safeguards network-connected physical IoT devices from cyberattacks. Edge computing is another tech opportunity that helps reduce response times and change operations at a local level.

Big Data

Big data is a massive new source of information that can be manipulated and used by technology companies to improve efficiency, generate insights and innovate. These large data sets come from traditional and digital sources inside and outside your company, including customer, product, sales and marketing information; analytics from point-of-sale terminals and e-commerce platforms; security data; and financial market activity. The real value comes when you analyze and understand the data and transform it into actionable insights.

Mobility

A wave of technologies is redefining how we work, play and live. They provide a massive opportunity to invest in growth-backed companies.

Private companies are disrupting established industries and creating new ones. They’re backed by venture capital and are generating enormous value. They have also catalyzed secular shifts in the market.

Cloud Computing

The cloud is a repository for data that eliminates the need to keep and update servers or install security patches. It also reduces costs by allowing companies to scale up and down their IT infrastructure as needed. For instance, due to its scalable cloud-based infrastructure, a fast-casual restaurant chain could handle online orders during the COVID-19 pandemic in just 42 days. Growth equity investors should not be deterred by the 2022 swoon in tech valuations and IPOs, as many of these companies are still developing and benefiting from next-gen technologies.