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manuj’s blog

January 27, 2022

Best Artificial Intelligence Stocks: 10 AI Companies to Invest in

a man and a woman with a transparent screen talking about the best artificial intelligence stocs

Artificial Intelligence is a big deal. The tech industry is going to be AI for a while and it will have a lasting effect. So learning how to invest in AI is going to be fruitful.

In the last couple of years, we’ve seen an explosion of new technology companies related to AI. These companies work on software and hardware that allows us to put AI capabilities in our devices or on the cloud. 

These technologies are revolutionary. Because they allow developers to add capabilities to existing products and services, or even create something entirely new. 

So it’s not only going to change the world, but it also has the potential to make the investors wealthy. 

Some Statistics On AI 

It’s not enough to just mention a few buzzwords and jump to the conclusion that AI is going to change the world. Therefore, here are some numbers to prove our point. 

  • AI is expected to grow at a 33.2% annual rate between 2020 and 2027.
  • AI is expected to increase global GDP by $15.7 trillion, or 26%, by 2030.
  • Companies are expected to have an average of 35 AI projects in place by 2022.
  • Only 7% of businesses don’t use AI but are interested in doing so.
  • If AI is not scaled, 75% of executives believe their company will go out of business within five years.
  • 86% of CEOs say AI is mainstream technology in their office in 2021 (source)

With that, here are the 10 best AI stocks you can bet for. 

10 Best Artificial Intelligence Companies to Invest 

1. Nvidia Corp (NVDA)

Nvidia corp logo for the best artificial intelligence stocks

Nvidia Corp (NVDA) is a technology company that is in the business of manufacturing processors for computer graphics. The company has been involved in artificial intelligence (AI) since its inception. And is now playing a major role in the development of AI systems and autonomous vehicles.

Nvidia Corp plans to build an AI supercomputer lab in Cambridge, England. This will be used to power the world’s fastest supercomputer. The computer, called Leonardo, will rely on Nvidia graphics processing units (GPUs) for its computational power. 

The biggest selling point of Nvidia Corp is that AI is the heart of the company and it’s a driver in the development of AI. 

In fact, according to analysts, there appears to be no other player with a similar market share. The company’s closest competitor, Intel Corporation (INTC), has a market cap of only half that of Nvidia’s $130 billion. All this means that investors will reap greatly from the long-term investment here. 

2. Amazon.com Inc. (AMZN)

two Amazon boxes for the Nvidia best artificial intelligence stocks

Amazon has been putting AI at the core of its business for a decade now. Amazon’s leadership in AI has been evidenced. The fact that both Google and Microsoft have recently tried to buy them, in part to steal their AI talent. 

Amazon is investing heavily in supply chain optimization, which can be viewed as an incremental form of machine learning. 

Amazon’s leadership in ML was demonstrated when they recently launched on-demand delivery using drones.

Amazon is clearly thinking about how to add value through AI. They are reportedly looking at potential acquisitions that could augment Alexa, such as startups working on voice-recognition technology or machine translation.

Amazon has shown its commitment to incorporating ML into its retail offerings, by acquiring Kiva Systems, which uses robots to speed up fulfillment. 

They are not only using robots themselves but also providing the technology to third parties. This strategy will grow their business because fulfillment costs are one of the largest parts of operating a retail business. 

3. Alphabet Inc. (GOOGLE)

Google office and Alphabet Inc as the best artificial intelligence stocks

Alphabet Inc is a good investment as an AI stock. Because the company has demonstrated the ability to use big data to generate value. 

Alphabet Inc has a history of using big data in its many business activities, which include search engines, social media, and cloud computing. 

The management of the company was able to access massive amounts of data and use it as efficiently as possible to provide high-quality services to Alphabet Inc’s customers.

What makes Alphabet even more attractive is its commitment to the development of AI technologies. 

The company has launched many projects in the AI field, with the goal of developing strong machine learning systems that will be able to compete with human beings in terms of performance. 

The management of Google X, Alphabet’s research and development arm, has already developed some impressive applications that utilize AI technology.

The AI technology developed by Google can be utilized in various sectors that are currently being served by human workers through its provision of digital assistants like Google Now and Google Assistant. 

These technologies will replace human manpower across different areas such as medical diagnosis, customer service support, law enforcement, and education among others. Therefore, the company is a giant when it comes to AI stocks. 

4. International Business Machines Corp. (IBM)

IBM office building best artificial intelligence stocks

IBM has been a popular stock for investors looking to add artificial intelligence technology stocks to their portfolios. 

Based on the strength of its brand, as well as its strong balance sheet, IBM is well-positioned to continue outperforming the market.

The value of IBM’s stock rose from $139.5 in 2010 to more than $180 in mid-2014. And has since more than doubled, reaching $399.57 per share at the time of this writing (August 2017). 

The company has a market cap of $162.3 billion and an enterprise value of $149.9 billion. In comparison, Google has a market capitalization of $720 billion and an enterprise value of $400 billion while Apple Inc.’s market cap is $818 billion and enterprise value is $522 billion.

Moreover, it has developed a family of software products called PowerAI geared towards making its supercomputers better suited for AI workloads. On top of that, it has invested heavily in new chip technology that is better at crunching data than anything else on the market today.

5. Microsoft Corp. (MSFT)

Microsoft office building with Microsoft logo on the top of the building

The company is one of the most important players in AI, especially in the field of machine learning. 

Microsoft has been leveraging its expertise on big data and cloud platforms to develop and launch several products serving the so-called enterprise AI market, including Cortana Intelligence Suite and Azure Machine Learning.

Microsoft’s enterprise AI solutions cater to industries such as healthcare, travel and transportation, manufacturing, public sector, retail, financial services, and insurance sectors. 

These solutions can be used for tasks such as predictive maintenance, cognitive automation, customer service automation, and cyber security.

The Redmond-based company has partnered with several key clients for its AI solutions. Recently it announced a tie-up with Starbucks Corp to accelerate the digital transformation at the coffee chain. 

The company also has partnerships with Cisco Systems Inc (CSCO), Hewlett Packard Enterprise Co (HPE), Intel Corp (INTC), Infor (IFOR), Micro Focus International Plc (MFGPY), Salesforce.com Inc (CRM), and VMware Inc (VMW). 

A significant portion of Microsoft’s revenue comes from its cloud computing business which includes its Azure platform. Microsoft expects its cloud business to grow more than 40% in the coming years. 

6. Meta Platforms Inc. (FB)

Facebook and Meta logo as Meta is a hot artificial intelligence stocks option

The Meta Platforms Inc. (FB) has been around since 2011, which is a bonus as well. The company is still very small in terms of market cap and that makes it more vulnerable to the swings of the market. 

But also gives them the potential to grow faster as they are not weighed down by huge expectations. The company continues to earn higher earnings each year and has grown revenues by almost 50% for the past three years.

The company’s origins in the development of artificial intelligence and its close relationships with experts in that field have given them an edge over other companies in this area. 

They are looking into ways to use AI to develop software for applications like social media, e-commerce, transportation, and health care. Their first product is called “Deep Store” which helps people find relevant information quickly from across multiple sources.

The software they are developing has great potential to change the way we go about our day-to-day life. It can help us make better decisions and take steps towards solving some of our biggest obstacles. 

The company has attracted an impressive list of high-profile investors such as Salesforce CEO Marc Benioff, former Citigroup CEO Vikram Pandit, Twitter co-founder Evan Williams, and actor Ashton Kutcher just to name a few. 

7. Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)

TSMC has gained more than 40% year to date, which is much more than the broader market in 2017. It is one of the top-performing large-cap semiconductor companies. 

The company has a market value of $618.85 Billion as of December 2021. So if you want to invest in an AI stock, TSM is probably a good choice. 

The company’s core business is manufacturing silicon wafers that are used to produce semiconductors and integrated circuits. 

TSM doesn’t compete directly with the giant Chinese companies that dominate the semiconductor industry. Instead, it typically provides manufacturing services for companies that are direct competitors, so it doesn’t have to worry about pricing pressures from those giants.

The idea behind TSMC is simple: As AI becomes more important, its costs will fall dramatically as chips improve and production becomes more efficient. 

That means that more companies will be able to implement AI solutions in their products, which will help create new markets for AI  products and further drive down costs. Overall, the stock offers long-term performance potential for investors looking for growth in their portfolios. 

8. DocuSign Inc. (DOCU)

DocuSign Inc. is one of the most solid stocks in the market. It’s a dominant force in cloud-based e-signature and digital transaction management services for businesses. 

DocuSign Inc. has been around for more than a decade. While its core product is an e-signature app–which some people may still think of as sort of a novelty. 

It has evolved into a vital tool that businesses use to streamline the purchase and sale of goods and services, as well as financial transactions like loans, mortgages, and investments.

The company has also expanded into the Internet of Things (IoT), enabling smart devices like refrigerators to send order confirmations directly from manufacturer to grocery store, helping cut down on food waste. 

9. ABB Ltd. (ABB)

ABB Ltd. is one of the leading robotics companies and one of the largest engineering companies in the world. The company is headquartered in Zurich, Switzerland, and has a market cap of $70.592B billion. 

ABB employs more than 170,000 people, generating annual revenues of $35.86 billion. The company has a massive presence on the African continent, with operations in 54 countries and leading positions in all major markets.

ABB’s core business is industrial robotics, including automation systems, flexible manufacturing systems, and robotics software. Robotics and artificial intelligence technologies have been growing at a rapid pace over the last few years. 

Both in terms of innovations being made by researchers as well as commercial interest by businesses to utilize these technologies. 

In fact, according to a recent report by Tractica, the global market for robotics is expected to grow from $28 billion in 2016 to $153 billion by 2025. 

Furthermore, Gartner predicts that the number of IoT endpoints will grow from 16 billion in 2016 to more than 26 billion by 2020, creating plenty of opportunities for ABB to grow its business in IoT. 

10. NICE Ltd (NICE)

NICE Ltd provides analytical tools for businesses and has been around for about 34 years. The recent growth of their business has been powered by their artificial intelligence technology. 

The NICE EnginEAR (short for “ear” as in “earning”), which can automatically analyze recorded conversations between call-center agents and customers to diagnose various customer service problems. This machine learning technology is what differentiates NICE from other voice analysis tools.

NICE is a market leader in software applications for managing call center operations and customer interactions. NICE’s AI and machine learning technology also make fraud detection and regulatory compliance easier. 

The company employs AI to assist businesses in categorizing and analyzing voice communications. This helps leverage the power of data analytics to improve the way businesses interact with contact center teams.

Before you invest in these companies, it’s best to get an expert assessment 👇

first-class investment assessment

Wrapping UP 

The future of artificial intelligence is ripe for advancement and expansion. The rise of AI, robots, automation, machine learning, and IoT is disrupting every major industry. However, not every company will thrive.

Corporations with a business model that is solely focused on AI and automation will thrive. We mentioned a few of the best AI companies with similar fundamentals. So you can leverage the AI industry while there is still plenty of room for expansion.

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