As the buzz around artificial intelligence continues to grow, investors are scrambling to identify the sectors best positioned to take advantage. Ark Invest’s Tasha Keeney is no different. Keeney, director of investment analysis and institutional strategies at the asset manager, estimates that equity market capitalization attributable to innovation will jump to $220 trillion by the end of the decade, up from $15 trillion to $20 trillion now. “Most of that … we expect to be attributed to artificial intelligence,” he said. Ark Invest — which has a strong focus on innovation — invests in areas such as autonomous vehicles, drones and robotics, energy storage, 3D printing and space exploration through the Ark Autonomous Tech & Robotics ETF (ticker ARKQ). After a bullish 2020 post-pandemic, the fund has struggled and is currently down about 3.7% year-to-date. Self-driving cars: A $28 trillion opportunity Self-driving cars are an area related to artificial intelligence that Keeney is “particularly excited about.” “Self-driving cars are already in major cities today around the world. We think in the next 10 years, that’s going to scale. I think that opportunity alone could be worth $28 trillion in enterprise value because that’s going to be very disruptive.” “, he said. he told CNBC’s “Street Signs Asia” on March 8. One company that stands out to her is Tesla — also a longtime favorite stock of Ark Invest’s Cathie Wood. Calling it an industry leader, Keeney pointed to “incremental advances in self-driving technology” as one of the company’s strengths. “Sure, it’s still not perfect, it still messes up in certain scenarios. But what we’re relying on here is the data advantage that Tesla has [has and] That’s very important for artificial intelligence in general,” he said. Tesla shares are down about 1.8% over the past 12 months. Ark Invest has a $200 price target on the stock, but Keeney said that is in the process of being updated. . Tesla was trading around $178 on Friday. Some analysts are now cautious on the stock. According to Factset data, of the 49 analysts covering it, 23 have hold ratings, 18 give it a buy or overweight rating and 8 sell. or Underweight Rating. They have an average price target of $210.65. Autonomous Drones: A ‘Very Hot Topic’ Beyond automakers, Keeney wants to ride the wave of autonomy through opportunities in drones. “These days, it’s a very hot topic, because … “we see conflict increasing globally,” she said, naming Kratos Defense and Security Solutions and AeroVironment as two stocks on her radar thanks to lower costs and more affordable drone platforms. Kratos makes defense technologies such as jet-powered drone systems, while AeroVironment makes munitions, drones and is a “long-time leader” in surveillance technology, according to Keeney. Keeney emphasized that drone technology can go beyond military use cases and be applied to all industries. For example, supermarket chain Walmart has partnered with drone delivery players Wing — backed by Google parent Alphabet — and Zipline to deliver food to consumers. “Ultimately … it lowers the cost to the end consumer,” he said.