If you are finding the best artificial intelligence stock for investing, this article might be helpful for you. Here we will provide the 9 best artificial intelligence stocks for knowledge purposes. So, continue reading till the end.
The world is evolving at a breakneck pace. The AI race is heating up as more corporations and countries build intelligent computers capable of working and interacting with people. Furthermore, this has generated the new potential for investors to capitalize on these prospects to invest in AI stocks.
Artificial intelligence stocks and organizations are blossoming at an incredible rate as a result of the increased adoption and use of emerging technology. So, we will tell you about the 9 best artificial intelligence stocks in this article to provide good opportunities for investment in AI stocks.
Also, Read... Best Artificial Intelligence Mutual Funds in 2023
How do Companies use Artificial Intelligence?
AI is generated through machine learning, which entails training a system using massive volumes of data. It then applies the trained system to draw conclusions about new data that it has never seen before.
Businesses use artificial intelligence in two ways. Numerous IT companies employ AI to enhance their present processes, such as robotics, self-driving cars, and virtual assistants. Google, an Alphabet company, employs AI to filter spam for Gmail users. Amazon employs AI to promote things to customers, but Netflix uses AI to direct content creation and recommendations.
Several organizations benefit directly from AI by offering hardware, software, services, or expertise that the technology requires. These are actually artificial intelligence stocks, including those listed below.
List of the Best Artificial Intelligence Stocks
You can invest in companies that create AI hardware, develop AI solutions, or market AI development tools. You can also invest in companies that utilise AI to improve their products, marketing, or efficiency. Overall, you have high-quality possibilities in all categories, including a few equities you already know. Let’s begin.
NVIDIA (NVDA) AI Stock
Nvidia, the world’s leading graphics processor maker, has capitalised on the AI boom, with its graphics cards becoming the de facto standard in data centres worldwide. The training phase of machine learning requires a lot of computational resources, but the inference phase requires less. Graphics processing unit (GPU) processors, used mostly for rendering video games, support both stages well.
Nvidia’s data centre division is progressively expanding its share of total revenue and is expected to surpass gaming revenue in fiscal 2022. Nvidia’s graphics cards are used to accelerate a wide range of data centre applications, so this section isn’t entirely AI-related. Yet, artificial intelligence is one of the driving drivers behind the company’s expansion.
Another area of emphasis is self-driving cars. Nvidia creates platforms, including hardware and software, that can enable driver-assist features as well as completely autonomous driving.
A self-driving car must interpret enormous volumes of data from various sensors and cameras in real-time, detect items such as pedestrians and other vehicles, and make sophisticated judgements. They necessitate a great amount of computer power, which Nvidia’s technology provides.
Its professional visualization business, which includes its omniverse, is also rapidly expanding, with revenue more than doubling by 2021. Nvidia’s graphics cards may one day be overtaken by more specialised CPUs developed for AI, but for the time being, the company is in an ideal position.
C3.AI – Artificial Intelligence Stock
C3.AI may be the closest approach to a pure-play AI stock on the market, as the “AI” in the company’s name and ticker suggest. While the firms on the list above are diverse IT giants or chip makers with some AI operations, C3.AI is solely focused on artificial intelligence.
C3.AI is a SaaS firm whose platform enables businesses to develop massive AI applications. The company’s solutions enable its customers to accelerate software development while lowering costs and risk, and they have a wide range of applications.
A European utility Company Engie is utilising C3.AI to monitor energy consumption and cut energy costs. C3.AI claims to be the first in its industry and claims to be unaware of any end-to-end enterprise AI development platform that competes with it. Although the AI SaaS industry is expanding and could bring cloud competition from Amazon, and Microsoft. But the company’s unique positioning could make C3.AI a long-term winner.
ADOBE (ADBE) AI Stock
Adobe Software is produced for document management, publishing, marketing, data analytics, and content production. Design software that is marketed as a subscription is the company’s flagship product, Creative Cloud.
The marketing and analytics suite Adobe Experience Cloud will include new AI and machine learning (ML) features in 2022. Predictive capabilities among these developments aid sales and marketing teams in comprehending how various aspects of marketing campaigns influence customers’ purchasing decisions. Their marketing and expenditures can be optimised using that data.
IBM – Best Artificial Intelligence Stock
IBM is the industry leader in AI products and services. Its mainframe computer systems are still widely used in some areas, and it regularly signs multi-year technology agreements worth hundreds of millions of dollars. IDC placed IBM at the top in AI software platforms in 2020, with a 13.7% market share, up 46% from the previous year.
IBM’s AI goal aims to use the technology to boost human intelligence, improve efficiency, or reduce expenses. In the healthcare industry, IBM’s AI technology is being used to generate tailored care plans, accelerate the process of bringing new pharmaceuticals to market, and improve the quality of care.
In the financial services industry, IBM is employing AI to help clients with the difficult chore of financial regulatory compliance. IBM is a complex organization experiencing transformation, and AI is far from its only possibility for growth. Yet, if you want to invest in a firm that is well-positioned to benefit from the AI boom, IBM is an excellent option.
Oracle (ORCL) AI Stock
Oracle offers cloud computing infrastructure, software, and hardware, such as the AI-capable Oracle Cloud Infrastructure. As previously stated, the company has recently expanded its cooperation with chipmaker Nvidia in order to broaden the AI capabilities it provides to enterprise customers.
Oracle helps businesses automate processes by leveraging pre-built artificial intelligence, data-driven cloud apps, and cost- and time-saving strategies. Among these are procurement and inventory management for finance teams, automated receivables and payables, and cash flow optimization.
These apps help salespeople close deals by identifying the most likely business opportunities. It is one of the best artificial intelligence stocks to look for in 2023.
Microsoft – Artificial Intelligence Stock
Since 2019, Microsoft has invested in OpenAI, the firm that created ChatGPT. The collaboration began with a $1 billion investment and an agreement that Microsoft would provide the AI lab with cloud computing capabilities exclusively.
Microsoft stated in January 2023 that it would expand its OpenAI cooperation into a “multiyear, multimillion-dollar commitment.” Microsoft has also asserted that its Azure cloud computing platform will make AI technology available to everyone. Like Alphabet, Microsoft recently unveiled an AI chatbot for its search engine Bing. But it also failed.
Alphabet (Google) AI Stock
Alphabet, the parent company of Google, recently unveiled a beta version of Bard, an AI chatbot that works similarly to ChatGPT. When you ask Bard a question, it responds right away with an answer by quickly locating, gathering, and summarising internet data.
Some believe that this is the next step in the search. Instead of requesting a list of web pages from a search engine, you obtain a single, straightforward response.
Sadly, Bard’s test launch was a complete failure for Alphabet. The chatbot provided a false response in a brief demo movie meant to demonstrate Bard’s strength. Clearly, Alphabet needs to improve its technology. Outside of Bard, Alphabet provides commercial AI infrastructure and tools via its Google cloud computing division.
Amazon – Best Artificial Intelligence Stock
Amazon uses AI more than any other corporation, if not all. The company’s foundation has always been technology, even if Amazon began as an online shop. Amazon now employs AI in all of its products, from Alexa, its market-leading voice-activated technology, to its cashier-less grocery stores, Amazon Go, to Amazon Web Services Sage-maker, the cloud infrastructure tool that provides data scientists and developers with high-quality machine learning models.
Since algorithms power, its top-tier recommendation engines for e-commerce, video streaming, and music downloads, Amazon’s online retail operation is likewise based on AI. Even Amazon’s logistics operations benefit from its AI capabilities, which aid in scheduling, rerouting, and other methods to increase delivery accuracy and efficiency. Drone deliveries, which the corporation has long tried to adopt, would be yet another AI use for the tech behemoth.
It’s impossible to quantify the influence of AI on Amazon’s business, but it’s definitely a major component of the company’s competitive advantage. During its existence, Amazon has been at the vanguard of emerging technologies such as e-commerce, e-books, cloud computing, video streaming, and voice-activated technology. AI supplies much of the infrastructure that enables the organization to enter new markets rapidly and successfully.
Micron Technology (MU) AI Stock
Micron Technologies makes memory cards such as dynamic random-access memory (DRAM) and NAND flash memory, which are used in solid-state drives. The majority of the company’s products are commodities, which means that supply and demand determine to price.
The demand for memory cards was strong in 2021, due to the expansion of mobile networks, 5G, and cloud computing. A resurgence in the automotive sector and a lack of semiconductors have helped increase prices for Micron’s DRAM and NAND chips. Profits are skyrocketing in the current environment, with earnings per share tripling to $4.04 in the first half of fiscal 2022.
The demand for memory chips will continue to rise in the future, and the AI sector will benefit the most. According to estimations from Micron, the total amount of data produced by all the sensors and cameras is approximately 1 GB every second. Both data centres and smartphones that could be executing AI programs need a lot of memory. Due to the nature of the business, Micron will probably continue to be volatile. The long-term need for memory chips is fuelled by AI, but in the short term, supply and demand rule supreme.
If you invest in AI stocks in 2023, have a long-term view of those holdings. While artificial intelligence (AI) may be the next great thing to generate tremendous riches in the stock market, it will not happen tomorrow. Give yourself a five-year time frame and, like with other investments, be prepared for some volatility along the way.
These are all about the best artificial intelligence stocks for investment in our opinion. It is provided solely for educational reasons, not intended to be investment advice. Before making any investment decisions, do your own research and consult with financial professionals. We are not responsible for the investment perspectives presented in the article. That’s all for now, stay tuned for more. And, thanks for reading!
Frequently Asked Questions
1) Is it wise to invest in artificial intelligence?
AI stocks may be fantastic long-term investments. Companies that do not invest in AI goods and services may become obsolete.
2) Is AI a thriving industry?
AI has been a constant hotspot, with the market expected to rise by $76.44 billion by 2025, with an annual growth rate of more than 21%.
3) What are the best artificial intelligence stocks for investment?
Some of the best AI stocks are NVIDIA, C3.AI, Adobe, Microsoft, IBM, Alphabet, Oracle, Amazon, and Micron Technology. We have described all of them in the above article. Go, and read.