Artificial intelligence is already revolutionizing industry, like it or not.
Wall Street occasionally seizes upon futuristic themes with religious fervor, bidding up shares in companies that supposedly lead in one space or another. AI once occupied that “fascinating-but-far-off” thematic market sector, but the best artificial intelligence stocks to buy today use techniques like machine learning and neural networks routinely as a core function of their business. Millions of consumers interact with AI directly or indirectly on a day-to-day basis via virtual assistants, facial-recognition technology, mapping applications and a host of other software. That said, this is just the early innings, and the area’s profit potential is hard to overstate. Here are 10 AI companies betting big on artificial intelligence.
Nvidia Corporation (ticker: NVDA)
NVIDIA is the pioneer of GPU-accelerated computing. NVIDIA specialize in products and platforms for the large, growing markets of gaming, professional visualization, data center, and automotive.
NVIDIA creations are loved by the most demanding computer users in the world – gamers, designers, and scientists. And our work is at the center of the most consequential mega-trends in technology.
Alphabet (GOOG, GOOGL)
Google parent Alphabet has a practically existential interest in investing heavily in artificial intelligence. Google uses AI and deep learning to automate many vital parts of its sprawling software business: relevant search results, speech recognition, self-driving technology, ad pricing, personal assistant software and much more. Much of Alphabet’s nearly $1 trillion valuation depends on maintaining and improving these services. With many observers believing AI could be a winner-take-all market, GOOG has the resources, motivation and experience to win, which would certainly make it one of the best artificial intelligence stocks to buy. In late 2019 Google announced it had achieved “quantum supremacy” with its Sycamore processor, solving a computation in 200 seconds that would take the world’s fastest supercomputer 10,000 years. Until proven otherwise, this may make GOOG the single most exciting AI company in the world.
The Fourth Industrial Revolution is changing the way people work, using robotics, AI, the Internet of Things, and more. By making these innovations easier and more accessible, Salesforce are helping create a future with greater opportunity and equality for all.
The second company to ever reach a $1 trillion valuation, Amazon couldn’t have hit that level by now if it weren’t all-in on artificial intelligence. Like Google, returning relevant search results is central to Amazon’s business, and AI also powers key capabilities like forecasting product demand, optimizing logistics and warehousing, and improving the voice-powered Amazon Alexa virtual assistant. Amazon Web Services (AWS), the company’s cash cow, is also the leading cloud provider of machine learning services, making Amazon’s expertise here even more vital (and lucrative). With hundreds of jobs in AI and machine learning posted globally, the e-tailer is working rabidly to stay at the forefront of the fast-growing field.
Microsoft Corp. (MSFT)
The most valuable tech companies in the world, without exception, all invest in artificial intelligence. Microsoft’s cloud computing service, Azure, is home to AI-driven tools for medicine, language, robotics, medical imaging and many other areas. A 2019 $1 billion investment in Elon Musk-founded OpenAI aims to produce the holy grail of AI, artificial general intelligence (AGI), the technology that can do anything human intelligence can. If successful, Microsoft becomes OpenAI’s preferred partner for commercialization. If AGI is feasible it’ll likely take decades, but the profit potential is virtually unthinkable. Anyone who wants a slice should own the top AI companies today – and that means owning MSFT, one of the few tech giants not currently being targeted by U.S. regulators.
Baidu, the dominant Chinese internet search operator that’s trying to recast itself as a leader in artificial intelligence, will provide its technology to streamline the operations and improve efficiency at Beijing’s main airfield.
The company will provide the airport with its AI-enabled facial recognition technology for the admission of ground crew and staff, gradually expanding the capability to verify the identities of passengers. Eventually, passengers will be able to board their flights just by having their faces scanned at the airport, with the “face as boarding pass” capability ready for implementation as early as 2018, Baidu said.
Analysts expect earnings growth above 20% in both 2020 and 2021, and after falling in 2019, BIDU’s valuation combined with China’s willingness to incentivize AI research, and a large population, means BIDU is one of the top AI stocks to buy today.
Intel Corp. (INTC)
Artificial Intelligence has unleashed a new era of creativity and ingenuity. Today, Intel® technologies power some of the most promising AI use cases in business, society, and research. From massive cloud to tiny device, Intel turns the promise of a transformative AI model into a global-scale reality.
Intel customers have achieved success across a range of hardware: massive inference deployment on CPUs across multiple data centers for content recommendation engines, VPU-based cameras that protect endangered species from poachers in real-time, and FPGAs that provide acceleration for fast search results. Intel® hardware and software power image recognition, cyber intelligence, predictive maintenance, fraud waste, and much more. From data strategy to enterprise-scale deployment, Intel and our ecosystem accelerate time from pilot to business impact with production-ready solutions that solve common problems—no matter what your industry.
And there’s more to come. Intel are working closely with the AI community to accelerate discoveries and make meaningful progress in how we use artificial intelligence to add value to our work and lives, whether it’s finding water on the moon, speeding critical medical diagnoses, or seeing product defects faster. This is AI on Intel.
“TWLO may have the greatest risk/reward of the top AI companies,” U.S. News’s original write-up of the best AI stocks, circa early 2018, read. “At $3.8 billion, the cloud software business could be wildly overvalued – or shares could quintuple in the next five years.” Well, it didn’t take that long. By summer 2019, its valuation hit $20 billion. It’s pulled back some since, but Twilio – which offers cloud-based application programming interfaces (APIs) allowing developers to build voice, video and messaging features into their apps – still remains a wildly popular, useful and fast-growing service. Like some others on this list, Twilio’s high growth means high multiples. While only investors comfortable with greater volatility should consider TWLO, it still deserves mention as a top artificial intelligence company in 2020.
Facebook AI Applied Research engages in cutting-edge research that can improve and power new product experiences at huge scale for our community. Building on Facebook AI’s key principles of openness, collaboration, excellence, and scale, we make big, bold research investments focused on building social value and bringing the world closer together.
Transitioning from the largest social company in the U.S. to the largest social company in China, the tech conglomerate Tencent rounds out the list of the best AI stocks to buy. The nearly $500 billion company largely hit the jackpot with WeChat, a dynamic app ubiquitously used in China for messaging, payments, ride-hailing, social media, mail and other functions. One can imagine the practically endless ways machine learning and artificial intelligence could augment that service – and in the meantime, how WeChat’s more than 1 billion daily users can be used to test and rapidly improve this technology. TCEHY has recruited several top AI experts in recent years from rivals including Microsoft and Baidu.
The best AI stocks to buy:
- Nvidia Corp. (NVDA)
- Alphabet (GOOG, GOOGL)
- Salesforce (CRM)
- Amazon.com (AMZN)
- Microsoft Corp. (MSFT)
- Baidu (BIDU)
- Intel Corp. (INTC)
- Twilio (TWLO)
- Facebook (FB)
- Tencent (TCEHY)
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