Bank of America released 14 “moonshot technologies” that they feel investors should know about. In total, these investments have a $330 billion market size that could grow to $6.4 trillion by the early 2030s. The firm’s predictions come amid a growing appetite for thematic investing that focuses on understandable and relatable narratives. Led by Cathie Wood’s Ark Investment Management’s products, exchange-traded funds based on a market niche have attracted $42 billion of fresh money this year. For Next Tech to succeed, it must be economical and solve a key problem. It can also improve quality of life, and there must be government buy-in or support.
The lifespan of S&P 500 incumbents is shortening and by 2027 companies could last just 12 years before being replaced. Why? Next Tech and the rate of evolution is outpacing and replacing legacy systems. Incumbents are displaced at a faster rate because of accelerating innovations.
6G – The next generation of telecom networks will be here in less than a decade. Companies include Apple, Samsung, Ericson, Huawei, LG Nokia, AT&T, Verizon and T-Mobile.
Brain Computer Interfaces – Humans will be unable to keep pace with computers and AI. Therefore, rain computer interfaces should help humans to “level up.” Companies include Neuralink, Neurable, Emotiv, Kernel, NextMind, Meltin MMI, and BitBrain.
Emotional Artificial Intelligence – Known as ‘Affective Computing’ and ‘Cognitive Computing’, it is designed to capture, analyze and respond to human emotions and simulate human thought. Companies include Prombot & Neurodata Lab, Emotibot, Affectiva, Beyond Verbal, NVISO, Cynny S.p.a., Entropik Technologies, Human (wearehuman.io), CrowdEmotion, Mad Street Den, MusiMap, NuraLogix, Emoshape, BRAIQ, Receptiviti, and Personalyze,
Synthetic Biology – ‘Synbio’ takes advantage of the vast diversity of nature to make biomolecules not made by traditional chemistry. Here are some of the top public companies in the space: Codexis, Ginkgo Bioworks, Twist Bioscience, Precigen, Amyris. And the top private companies are: Apeel Sciences, Insitro, ElevateBio, National Resilience, Impossible Foods.
Immortality – Actors are looking to challenge the hallmark of aging by pathways such as “genomic instability, telomere attrition, mitochondrial dysfunction, and cellular senescence among others.” Companies include Calico Labs, Celerity, Unity Biotechnology, Spring Discovery, Gordion Biotechnology, and Reservoir Neuroscience. Also, checkout the Longevity Fund and Celine Halioua.
Bionic Humans – Invasive or non-invasive practices. Biohacking is also an associated field. RFID chips. Companies include: Sarcos Robotics, Ekso Bionics, ReWalk Robotics, Synchron, Xilloc Medical, Mobius Bionics, Open Bionics, Beta Bionics, and Advanced Bionics.
Average Lifespan of a Company on the S&P 500
eVTOL – Electrical vertical take-off and landing vehicles. These may provide an alternative mobility transportation solution to outdated infrastructure and overly stressed roads.
Wireless Electricity – As the Internet of Things (IoT) continues to takeoff, creating near continuous charging solutions could provide convenience for consumers. It could also solve charging problems for the rollout of EVs and secure electricity supplies for remote communities. This goes beyond traditional wireless charging companies. Companies include Rolls Royce, Airbus, Toyota, Qualcomm, Energous, WiTricity, Powermat Technologies, PowerbyProxi, WAVE, Humavox, Powercast, LaserMotive, Wi-Charge.
Holograms – Technology capable of creating a simulated environment through light imagery projections. It will allow everyone to come together in one virtual room, without leaving their physical location. As per hologram companies, take a look at WiMi Hologram Cloud (NASDAQ: WIMI). There are a plethora of stocks focusing on Virtual Reality (“VR”). These companies include: Facebook, Apple, Microsoft, NVIDIA Corporation, Alibaba Group Holding, Unity Software, Alphabet, and Lumentum Holdings.
Continue to look forward to the future.
Metaverse – A future iteration of the internet, made up of shared, 3D spaces that are linked into a virtual universe. The virtual worlds are interconnected with one another, as well as the physical world. Markets such as gaming, retail and entertainment would be transformed. Metaverse companies include Facebook, Microsoft, Unity Software, Roblox Corp., Amazon, Walt Disney Company, and NIVIDIA Corporation.
Nextgen Batteries – Lithium batteries are the major EV technology. But, there are alternatives such as solid state, vanadium flow, sodium ion, etc. Companies include Toyota, Murata Manufacturing, General Motors, Panasonic, Albemarle, Sociedad Quimica y Minera de Chile, AES Corporation. Also take a look at Albemarle, QuantumScape, Romeo Power, Value and Glencore. Others include Panasonic Corporation, NIO Limited, Tesla, Energous Corporation, and Lithium Americas Corporation.
More Energy-Related Tech
Ocean Technology – Utilizing the sustainable ocean economy – waves, currents, tides, etc. we harness its many benefits. Solutions may also include advances in aquaculture and fishing. Companies focused on ocean technology, include: Shone, Ocean Power Technologies, Resolute Marine, AquaBotix, OceanServer, NOTPLA.
Green Mining – We continue to move away from a carbon-intensive economy, which may require moving into a more metal-intensive one. Green mining solutions include deep-sea mining, agromining, mining of wastewater and asteroid mining. These could potentially mean less polluting and destructive solutions. The leading players in the green mining market are Glencore (Switzerland), Rio Tinto (UK), BHP Billiton (Australia), Vale (Brazil), Tata Steel (India), Anglo American (UK), Jiangxi Copper Corporation (China), Dundee precious (Canada), and Freeport-McMoRan (US).
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Carbon Capture & Storage – All current zero-carbon pathways require some form of CO2 removal. CCS, alongside various geoengineering solutions, could act as part of the solution with long-term permanent removal of CO2. Most of these companies are conglomerates, however, and do not utilize CCS as their primary business. Examples include Royal Dutch Shell, Chevron Corporation and NRG Energy. There is, however, a Global Carbon ETF called “KRBN” on the NYSE.
Which Sectors should have the most advantage?
Well, according to Bank of America, that would be Communication Services, Health Care, and Info Tech.
Conversely, BofA predicted that Real Estate would be hardest hit in a move to a virtual world.
Investing in early innovators often requires a strong stomach for losses, both in terms of the bottom line and stock performance.
For more stock-specific articles, check out our Buy List, showcasing some of the top-performing companies in the markets!
For more in-depth articles to help you navigate your financial journey, check our Personal Finance page out!
Bank of America