Artificial intelligence (AI) used to be a fascinating but futuristic idea that seemed far out of reach. However, many companies are now using AI techniques, such as machine learning and neural networks to help run their business. Now almost everyone will interact with AI at some point during the day, whether it is through facial-recognition software, virtual assistants, mapping applications. The fact that AI technology has begun to skyrocket over the past years makes investing in companies creating the technology a wise investment. Some of the artificial intelligence stocks that are definitely worth taking a look at include:

  • Nvidia Corporation
  • Tencent
  • Alphabet
  • Microsoft
  • Salesforce
  • Amazon.com
  • Facebook
  • Baidu
  • Twilio
  • Intel Corp.

1. Nvidia Corporation

If you have been following AI stocks at all, you have likely heard of Nvidia, which is a specialized semiconductor company whose technology plays a crucial role in a number of high-growth tech areas. Their graphics processing unit is used in a wide range of applications including:

  • Autonomous vehicles
  • High-performance gaming
  • Cloud computing

Nvidia saw a skyrocketing performance on the market before shares fell in 2018, but is still predicted to have a steady rise even though there are more competitors in their market. With the recent drop, the company is now at a more reasonable valuation, making it a wise investment for those looking to get in on AI stocks.

2. Tencent

The largest social company in China and one of the largest in the United States, is the conglomerate Tencent. The company climbed to the top with WeChat and has built itself up to over $400 billion. The WeChat app is widely used in China for payment processing, messaging, ride ordering, email, and social media. The app alone sees one billion users on a day-to-day basis and with there stride in AI, the possibility for growth seems endless. The company has employed several of the top experts in artificial intelligence, luring them from their rivals Microsoft and Baidu to build a team to help them develop AI in a way that other companies may not be able to reach.

3. Alphabet

Alphabet is the parent company of one of the most well-known tech companies across the globe, Google. They are heavily invested in AI and deep learning and are using this research and development to automate some of the most vital components in their business. They have used these technologies to develop:

  • relevant search results
  • Self-driving technologies
  • Digital ad pricing
  • Image recognition software
  • Speech recognition software
  • Personal assistant

The company has a market capitalization that is approaching almost a trillion dollars, and since the valuation of the company requires that the company continues to improve on the services they offer, investors can expect them to continue to innovate and move forward to keep up with and eventually exceed the competition. They have the resources, the teams, and the experience to continue to be a competition in the AI market.

They also have a DeepMind division, which is bringing a more challenging game that focuses on the tenant of AI. Based on the ancient Chinese board game called GO, the game is considered to be even more of a challenge than playing a game of chess. The division has released more than 100 games, with one game already beating a human international champion. They eventually plan to use this machine learning technology out of the gaming sector, and towards more important tasks, such as drug development.

4. Microsoft

Another well-known, and by far, one of the most valuable companies in the world, Microsoft, has stepped up its AI development to become one of the top contenders in the industry. They have created a cloud computing service, known as Azure, which uses a number of AI-driven tools to be used in:

  • Medicine
  • Robotics
  • Language
  • Medical imaging

They have recently invested more than a billion dollars, to create one of the most comprehensive AI programs around, called OpenAI. This new technology is artificial general intelligence designed to do everything that a human could. If the new technology is deemed successful OpenAI plans to partner with Microsoft to bring it to the commercial market. While the project is likely still decades away before it may be completed, if it is successful, it is expected to produce profits that investors only dream of. Investors would be wise to get into Microsoft stock now to be on the ground floor before the technology comes to fruition.

5. Salesforce

One of the best-known companies in the realm of customer relationship management software, Salesforce is extremely focused on growth and constantly looking for ways to scale. To continue to grow, the company is known for its acquisition of up-and-coming tech startups that can help aid in improving their SaaS offerings. They recently acquired Bonobo AI, bringing them into the AI field. The company uses AI to perform an automated analysis of calls, texts, and chats from customers to be able to deliver actionable insights.

This software is considered the perfect complement to their software Salesforce Einstein, which uses a variety of data to see business patterns that may be unseen by humans. This helps to:

  • Create hotter sales lead
  • Predict which marketing copy will better perform with the target market
  • Optimize how businesses operate and convert leads

While not previously on the AI stocks radar, Salesforce is now considered a fast-moving stock in the industry.

6. Amazon.com

Another company, with a valuation in the trillion-dollar range, is Amazon. Powered by the leadership of a CEO, who is known as the richest person in the world, the company has the funds, the drive, and the need to continually invest in new technologies, including AI. Amazon.com relies on artificial intelligence for a number of business processes such as:

  • Forecasting the demand for products
  • Optimizing logistics and warehousing processes
  • Improving voice-powered technology, such as Alexa
  • Returning relevant search results

7. Facebook

With the acquisition of Jerome Pesenti, who is a legend in the field of artificial intelligence, Facebook has reiterated its deep commitment to bring AI to its services and utilizing it in its business processes. The AI team has developed an automating self-teaching algorithm which can improve its Newsfeed. They have also used AI to better screen for fake news and hate speech. The platform services more than 2.4 billion users per month, which gives it a great test market for its new technologies allowing it to constantly improve on them and excel among the competition. They also have used a variety of machine learning tools to help map unmapped parts of the world.

8. Baidu

A leading search engine company in China, Baidu, is also a strong performing company that you should consider adding to your possible AI investment opportunities. They have found a way to use AI predictable to be able to provide relevant search results and deliver ads that are relevant to the searcher. But this is not where their AI use stops. They also are now excelling with their facial recognition software beating out three of their biggest competitors Alibaba, Huawei, and Chinese universities. They are also a partner in a self-driving platform, Apollo, which has logged 91% of all the successful self-driving miles in the city of Beijing in the past year. They not only have a head start on some of the best AI technologies but they also have unique expertise, and a vast number of resources, making them a top contender.

9. Twilio

Twilio has been singled out by U.S. News as one of the most opportunistic investments, which has investors standing up and taking notice. They are known for maybe having the greatest risk, but also one of the greatest chances for a large reward, which can make it appealing to investors who want to cash out big. The company was a $3.8 billion cloud software company that was believed to be widely overvalued and could grow exponentially within just five years. The prediction proved to be true, and in just a few short years, it has now quintupled into a $20 billion company. The company offers a variety of cloud-based application programming interfaces that can be used by developers to add messaging, voice, and video features to their own apps. While they are considered riskier after their recent meteoric rise, the fact that their applications remain widely used and popular makes it a good AI stock to consider.

10. Intel Corp.

Intel has been around for a long time, and even though it is not seeing significant gains, it is thought to be a good conservative AI investment for those who are looking for a stable company that is still poised for growth. They are not only a well-established leader in the industry, but they have $14 billion in free cash flow. This asset allows them to focus funds on their R&D which will help them to make strategic acquisitions and hire the talent they need to continue to grow in the AI sector. Intel programming is used by Microsoft and a number of other tech leaders, proving that it is a company that is here to stay. They have recently developed processing units which can allow surveillance cameras to count the people in crowds, analyze behavior, and perform facial recognition.

AI is definitely an industry for savvy investors to take notice. As the world continues to rely on AI for day-to-day activities, these companies are expected to continue to grow and develop new technologies that consumers and businesses can’t live without. Want to learn more about choosing the right stocks to invest in? Download our free e-book, or sign up for one of our webinars today.

Author:
Jason Bond

Jason taught himself to trade while working as a full-time gym teacher; his trading profits grew eventually allowed him to free himself of over $250,000 in student loans!

Now a multimillionaire and a highly skilled trader and trading coach, Over 30,000 people credit Jason with teaching them how to trade and find profitable trades. Jason specializes in both swing trades and in selling options using spread trades, which balance the risk of selling options. Jason is Co-Founder of RagingBull.com and the RagingBull.com Foundation which donates trading profits to charity. So far the foundation donated over $600,000 to charity.

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