These 25 companies are best positioned to rake in big profits as robots and AI take over, SocGen says

  • The market for artificial intelligence will grow to generate $59.75 billion in revenues by 2025, Société Générale forecasts. 
  • The firm created a Rise of the Robots index with companies that are best positioned to profit from this growth. 
  • In the selection process, the analysts considered companies that invest heavily in research and development, those with a healthy return on invested capital, and sales growth. 

The robots won't take over every job, but they're already transforming the world. 

From self-driving cars to lab-grown meat, humans are designing robots to make our lives easier by speeding up and improving tasks we've always done. 

In fact, in a distant future, Société Générale sees artificial intelligence board members and politicians, and implantable phones as some of the possibilities. 

But bringing it back to the present day, the firm has identified investable companies that are best positioned to benefit from the growth of AI in their respective industries. AI will grow to rake in $59.75 billion market in revenues by 2025, SocGen forecasts.   

"AI raises concerns about security and privacy, and especially about the future of jobs," Daniel Fermon, the head of thematic research, said in a note on Tuesday.

"However, it also offers the potential for new solutions to some of our most pressing global problems, in areas ranging from climate change to the ageing of the population ... Whatever the outcome, AI is happening, creating potential investment opportunities as the field advances."

The list below highlights the top companies in SocGen's Rise of the Robots index. In the selection process, the analysts considered companies that invest heavily in research and development, which they saw as essential to leading in the fields of AI and robotics. They also selected companies with a healthy return on invested capital and sales growth. 

25 PHOTOS
Companies posed to rake in big profits as AI takes over
See Gallery
Companies posed to rake in big profits as AI takes over

NXP Semiconductors

Ticker: NXPI

Country: Netherlands

Sector: Semiconductors

R&D/sales: 16.79%

Return on invested capital: 6.26%

Three-year sales growth: 20.39%

Source: SocGen 

Photo credit: Markets Insider

Cypress Semiconductor Corp.

Ticker: CY

Country: US

Sector: Semiconductors

R&D/sales: 15.34%

Return on invested capital: -2.62%

Three-year sales growth: 54.09%

Source: SocGen 

Photo credit: Markets Insider

IPG Photonics

Ticker: IPGP

Country: US

Sector: Electronic Manufacturing Services 

R&D/sales: 7.16%

Return on invested capital: 18.94%

Three-year sales growth: 22.91%

Source: SocGen  

Photo credit: Markets Insider

Realtek Semiconductor Corp.

Ticker: 2379

Country: Taiwan

Sector: Semiconductors

R&D/sales: 27.45%

Return on invested capital: 7.39%

Three-year sales growth: 10.42%

Source: SocGen 

Photo credit: Markets Insider

Lasertec Corp.

Ticker: 6920

Country: Japan

Sector: Semiconductor Equipment

R&D/sales: 8.42%

Return on invested capital: NA

Three-year sales growth: 8.63%

Source: SocGen 

Photo credit: Markets Insider

Manhattan Associates

Ticker: MANH

Country: US

Sector: Application Software

R&D/sales: 9.70%

Return on invested capital: 67.31%

Three-year sales growth: 6.69%

Source: SocGen 

Photo credit: Markets Insider

Renesas Electronics Corp.

Ticker: 6723

Country: Japan

Sector: Semiconductors

R&D/sales: 16.27%

Return on invested capital: 11.97%

Three-year sales growth: -1.62%

Source: SocGen 

Photo credit: Markets Insider

Cadence Design Systems

Ticker: CDNS

Country: US

Sector: Application Software

R&D/sales: 41.39%

Return on invested capital: 12.71%

Three-year sales growth: 7.12%

Source: SocGen 

Photo credit: Markets Insider

Align Technology

Ticker: ALGN

Country: US

Sector: Health Care Supplies

R&D/sales: 6.62%

Return on invested capital: 22.62%

Three-year sales growth: 25.06%

Source: SocGen 

Photo credit: Markets Insider

Global Unichip Corp.

Ticker: 3443

Country: US

Sector: Semiconductors

R&D/sales: 13.39%

Return on invested capital: 21.87%

Three-year sales growth: 20.74%

Source: SocGen 

Photo credit: Markets Insider

Sunny Optical Technology Group

Ticker:2382

Country: China

Sector: Electronic Components

R&D/sales: 5.22%

Return on invested capital: 34.38%

Three-year sales growth: 38.87%

Source: SocGen 

Photo credit: Markets Insider

Ennoconn Corp.

Ticker: 6414

Country: Taiwan 

Sector: Technology Hardware & Storage

R&D/sales: 8.78%

Return on invested capital: 7.48%

Three-year sales growth: 96.98%

Source: SocGen 

Photo credit: Markets Insider

Workday

Ticker: WDAY

Country: US 

Sector: Application Software

R&D/sales: 42.49%

Return on invested capital: -12.80%

Three-year sales growth: 39.68%

Source: SocGen 

Photo credit: Markets Insider

Adobe

Ticker: ADBE

Country: US 

Sector: Application Software

R&D/sales: 16.76%

Return on invested capital: 19.08%

Three-year sales growth: 20.81%

Source: SocGen 

Photo credit: Markets Insider

Ams AG

Ticker: AMS

Country: Austria 

Sector: Semiconductors

R&D/sales: 20.12%

Return on invested capital: 6.56%

Three-year sales growth: 38.62%

Source: SocGen 

Photo credit: Markets Insider

Alibaba

Ticker: BABA

Country: China 

Sector: Internet Software & Services

R&D/sales: 9.09%

Return on invested capital: 6.97%

Three-year sales growth: 49.11%

Source: SocGen 

Photo credit: Markets Insider

Micron Technology

Ticker: MU

Country: US 

Sector: Semiconductors

R&D/sales: 8.98%

Return on invested capital: 33.80%

Three-year sales growth: 13.15%

Source: SocGen 

Photo credit: Markets Insider

Cavium

Ticker: CAVM

Country: US 

Sector: Semiconductors

R&D/sales: 38.41%

Return on invested capital: -3.07%

Three-year sales growth: 39.98%

Source: SocGen 

Photo credit: Markets Insider 

Harmonic Drive Systems

Ticker: 6324

Country: Japan 

Sector: Industrial Machinery 

R&D/sales: 4.60%

Return on invested capital: 8.65%

Three-year sales growth: 32.01%

Source: SocGen 

Photo credit: Markets Insider

Tencent Holdings

Ticker: 700

Country: China 

Sector: Internet Software & Services

R&D/sales: 7.34%

Return on invested capital: 19.97%

Three-year sales growth: 44.84%

Source: SocGen 

Photo credit: Markets Insider

Intuit

Ticker: INTU

Country: US 

Sector: Application Software

R&D/sales: 19.28%

Return on invested capital: 40.84%

Three-year sales growth: 7.02%

Source: SocGen 

Photo credit: Markets Insider

Mazor Robotics

Ticker: MZOR

Country: Israel 

Sector: Healthcare Equipment 

R&D/sales: 12.61%

Return on invested capital: -9.15%

Three-year sales growth: 46.99%

Source: SocGen 

Photo credit: Markets Insider

Cyberdene

Ticker: 7779

Country: Japan 

Sector: Healthcare Equipment 

R&D/sales: 48.81%

Return on invested capital: -1.93%

Three-year sales growth: 45.16%

Source: SocGen 

Photo credit: Markets Insider

Nvidia

Ticker: NVDA

Country: US 

Sector: Semiconductors

R&D/sales: 18.50%

Return on invested capital: 41.58%

Three-year sales growth: 28.50%

Source: SocGen 

Photo credit: Markets Insider

Facebook

Ticker: FB

Country: US 

Sector: Internet Software & Services

R&D/sales: 19.07%

Return on invested capital: 24.94%

Three-year sales growth: 48.36%

Source: SocGen 

Photo credit: Markets Insider

HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

BANK OF AMERICA: These 17 companies are best positioned to benefit from the millennial boom, which offers investors a $62 trillion opportunity »

More from Business Insider: 
One of investing's most influential pioneers just made a bold prediction about where tech stocks will be in 10 years — and it's not pretty for the likes of Apple and Facebook 
Wall Street experts are crying foul on an overlooked yet dangerous signal that a market meltdown is near 
These 7 global companies have the best chance to survive the retail apocalypse, Credit Suisse says

 

 

SEE ALSO: The world's hottest tech companies are now worth more than $5 trillion, and they could be pointing out the next big bubble

Read Full Story

Markets

DJIA 25,162.41 -137.51 -0.54%
NASDAQ 7,774.12 -96.78 -1.23%
NIKKEI 225 22,192.04 -12.18 -0.05%
HANG SENG 27,136.97 -186.62 -0.68%
DAX 12,163.01 -195.86 -1.58%
USD (per EUR) 1.14 0.00 0.34%
USD (per CHF) 0.99 0.00 -0.05%
JPY (per USD) 110.82 0.24 0.22%
GBP (per USD) 1.27 0.00 0.24%