Artificial Intelligence Stocks: The 10 Best AI Companies
AI could be the biggest new industry of the 21st century.
AI has long been a focus of science fiction and is no longer a curious subject for thinking about the distant future. it is here. The best artificial intelligence stocks you can buy are already using processes like machine learning and neural networks on a daily basis. If you were to take AI capabilities away from the following companies, their profitability would drop instantly - and three of them are trillion dollar companies, underscoring the importance of the new technology to the economy of 2021. The growth of artificial intelligence is also enviable; In a 2020 report by Grand View Research, the global market size for 2019 was estimated at 39.9 billion US dollars and projected an average annual growth rate of 42.2% between 2020 and 2027. Here are 10 AI companies that are making waves right now.
Nvidia Corp. (Ticker: NVDA)
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Nvidia is among the best AI stocks to buy as the high-end chipmaker is the preferred supplier of specialized semiconductors that power some of the most exciting areas of AI, from high-performance games to autonomous vehicles. The company, which last year announced the purchase of UK-based chip designer Arm for $ 40 billion, is now planning to build an AI laboratory in Cambridge, England, with an AI supercomputer. Nvidia's graphics processors (GPUs) are also used to power "Leonardo", the world's fastest AI supercomputer. Few companies are relying more on artificial intelligence than Nvidia, a strategy that has worked for shareholders as their shares rose from around $ 25 per share in early 2016 to recent highs of around $ 590.
Alphabet (toget, togetL)
Alphabet, the parent company of Google, is a great example of a massive, nearly $ 1.2 trillion company that uses AI every day to improve its business and profitability. Voice search, digital ad pricing, and relevant search results themselves use in-house developed artificial intelligence tools and deep learning techniques to drive the world's most dominant search engine. Employing some of the world's leading AI researchers to keep up with the latest technology, Google has been developing self-driving car technology since 2009. Alphabet's autonomous vehicle unit, Waymo, was valued at $ 30 billion in its most recent funding round. Google's leadership position in quantum computers, which could replace traditional computing and accelerate technological advancement dramatically in the future, is another key requirement to buy as one of the best AI stocks to buy.
Salesforce has been a leading large-cap growth stock for the past several years, becoming one of the newest members of the vaunted Dow Jones Industrial Average in 2020, replacing Exxon Mobil (XOM) in the blue-chip benchmark. As a leading provider of customer relationship management software, Einstein leverages Salesforce AI's software to add value to customers, scrape data to identify hard-to-find trends, prioritize hot sales leads, predict superior marketing copies, and much more. Analysts expect earnings per share to grow more than 17% annually for the next five years. The sales company for business-to-business software still has a lot of leeway, especially if Salesforce customers continue to benefit from the AI-supported Salesforce Einstein technology.
Jeff Bezos, CEO of Amazon, writes a letter to shareholders every year highlighting what the company has achieved and where it is currently putting its focus and resources. Artificial intelligence has been a major focus in these letters for years, and you can see the results in Amazon's Alexa devices, which have been leaders in voice recognition for consumers. At more than $ 1.5 trillion, AI didn't just improve Alexa on Amazon's operations. As with Google, the relevance of search is very important to the AMZN business and artificial intelligence helps to iterate and improve search results all the time. However, Amazon does not hoard its AI expertise for internal purposes: Amazon Web Services, the leading cloud computing platform, offers customers machine learning. Last quarter, AWS operating income represented more than 57% of Amazon's total operating income.
Microsoft Corp. (MSFT)
The world's most valuable technology companies invariably invest in artificial intelligence. Microsoft's cloud computing service, Azure, provides AI-driven tools for medicine, speech, robotics, medical imaging, and many more. A $ 1 billion investment in 2019 in OpenAI, founded by Elon Musk, aims to create the holy grail of AI, artificial general intelligence (AGI) - the technology that can do everything human intelligence can do. While this is definitely swinging for the fences, OpenAI is already making breakthroughs. Recently, a neural network called DALL-E was created that can create a dizzying array of custom images from text alone. While the threat to photography may not sound like groundbreaking, it is a formidable landmark. Because of its investment, Microsoft becomes OpenAIs preferred partner for commercialization and solidifies MSFT as one of the world's leading AI companies.
In the U.S. news's original description of the best AI stocks in early 2018, Twilio was valued at less than $ 4 billion and was named the biggest risk / reward of any company. Three years later, the cloud software business is worth more than $ 59 billion. Twilio makes cloud-based application programming interfaces (APIs) that developers can use to integrate voice, video, and messaging capabilities into their apps - and it's still an extremely popular, useful, and rapidly growing service. Like some of the others on this list, Twilio's high growth means high multiples. While only investors with higher volatility should consider TWLO, it deserves to be named as one of the leading artificial intelligence companies in 2021. Analysts expect earnings to grow more than 20% annually over the next five years.
IBM itself no longer has the same influence in the technology world as it used to. To be honest, the overall business has been slowly declining for years. Even so, it's still a huge business, with at least $ 75 billion in annual sales, and it's putting profits back into high-growth areas like the cloud, data, and artificial intelligence. With free cash flow of $ 10.78 billion over the past twelve months, investors needn't worry about IBM's sustainability. The company has worked with partners such as JPMorgan Chase & Co. (JPM) and Daimler AG to find various practical applications for IBM's efforts in quantum computing in their industries. IBM's Watson technology, famous for the dominance of Jeopardy! Competitions, is also used in healthcare, infrastructure, finance and other areas.
Facebook is deeply committed to machine intelligence. As of January 2018, the company has Jerome Pesenti, a legend in the field who is known to lead IBM's Watson division and lead the AI research team. Automating self-taught algorithms to improve Facebook's newsfeed algorithm, which is used by 2.74 billion monthly active users, is central to FB's success. Using AI to find hate speech and fake news has never been more important to the company (or society). Although Facebook is using its top talent to come up with useful tools like the COVID-19 forecast, it also created AI chatbots that unexpectedly began communicating in their own made-up language in 2017, forcing the company to pull the plug. Facebook's open-loop initiative, which aims to steer smart technology and AI regulation, also has the potential to serve itself.
In the transition from the largest social enterprise in the US to the largest social enterprise in China, technology conglomerate Tencent is also one of the best AI stocks to buy. China's first technology company, valued at more than $ 500 billion, has largely hit the jackpot with WeChat, a dynamic app ubiquitous in China for messaging, payments, hail, social media, mail, and other functions. One can imagine how virtually endless machine learning and artificial intelligence can expand this service - and how in the meantime the more than 1 billion active users of WeChat every day can be used to test this technology and quickly improve it. TCEHY has recruited several top AI experts from competitors such as Microsoft and Baidu (BIDU) over the past several years. Tencent is currently using AI to enhance its content, social media and gaming experiences and hopes to sell its AI solutions to the healthcare, agriculture, industrial and manufacturing sectors.
It might come as a surprise that an online document service like DocuSign is ranked as one of the world's leading AI companies, but that's how DocuSign is using artificial intelligence to revolutionize contracts - one of the unannounced pillars of modern society - - that's so exciting. In 2020, DOCU acquired Seal Software, an AI company specializing in contract analysis, for $ 188 million. DocuSign's use of natural language processing and machine learning not only uncover risks hidden in contracts, it also identifies opportunities and significantly accelerates the flow of business by reducing the legal steps required to close deals. The stock more than tripled in the past year, but analysts believe DocuSign will grow earnings per share by more than 50% between 2021 and 2022.
The Best AI Stocks to Buy:
- Nvidia Corp. (NVDA)
- Alphabet (toget, togetL)
- Salesforce.com (CRM)
- Amazon.com (AMZN)
- Microsoft Corp. (MSFT)
- Twilio (TWLO)
- IBM (IBM)
- Facebook (FB)
- Tencent (TCEHY)
- DocuSign (DOCU)
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