ROBO ETF Well-Positioned for AI Growth in 2024, Generative AI Driving Commercialization
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ROBO Global Robotics and Automation ETF (ROBO) is a good way to invest in AI commercialization. It has been less volatile than the popular ARK Autonomous Tech ETF (ARKQ).
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2024 should see widespread enterprise adoption of AI after initiations in 2023, with opportunities in many sectors. ROBO is exposed to these sectors.
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ROBO could potentially grow revenue at 12% in 2024 based on growth estimates for the generative AI market. A price target of $60.76 is justified.
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ROBO has lower concentration risk than peers, with top 10 holdings only 17.7% of assets. This could be beneficial in a volatile market.
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Generative AI makes robots more interactive, a key theme for commercialization. Despite AI progress, caution on overhyped areas like autonomous vehicles.