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

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

robot waiter restaurant

Reuters

A chef places plates with food onto the tray of a robot waiter in a restaurant in Xianyang, China June 17, 2017. Picture taken June 17, 2017.

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  • 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.

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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.

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"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.

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NXP Semiconductors

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

Cypress Semiconductor Corp.

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

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IPG Photonics

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

Realtek Semiconductor Corp.

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

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Lasertec Corp.

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

Manhattan Associates

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

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Renesas Electronics Corp.

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

Cadence Design Systems

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

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Align Technology

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

Global Unichip Corp.

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

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Sunny Optical Technology Group

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

Ennoconn Corp.

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

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Workday

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

Adobe

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

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Ams AG

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

Alibaba

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

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Micron Technology

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

Cavium

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

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Harmonic Drive Systems

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

Tencent Holdings

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

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Intuit

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

Mazor Robotics

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

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Cyberdene

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

Nvidia

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

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Facebook

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