AI Stocks Span Chips, Software, Internet Giants
- by Tech Today
- Posted on October 2, 2022
The stocks of artificial intelligence are more scarce than you’d imagine. Numerous companies promote AI initiatives in technology or machine-learning. There are a only a few pure-play, public AI stocks.
In general, you should look for AI companies that utilize artificial intelligence to enhance products or gain an advantage.
Electric automobile manufacturer Tesla (TSLA) held the annually scheduled AI day on September. 30. Tesla unveiled a concept that was their Optimus Humanoid Robot. Tesla CEO Elon Musk stated that the goal price of the robot was less than $20,000. TSLA shares have Relative Strength Ratings of 78. This is out of an ideal 99.
AI is a technology that cybersecurity companies aim to detect and stop criminal activity on computers more effectively than the current technology are able to. Cybersecurity company Palo Alto Networks (PANW) is aiming to implement AI throughout the cloud platforms it operates.
“We must become more savvy about implementing AI in our business as well as across the entire industry,” Palo Alto Chief Executive Nikesh Arora said at Goldman Sachs Communacopia conference on Sept. 13. “So our greatest challenge as a company at the moment is to comprehend our data in a way to be able to use the data to create predictive capabilities within our products to ensure that our customers can have a better experience than relying on humans to be able to grasp everything and then take extremely complex products and apply them successfully.”
Many companies find that gaining an advantage with AI requires continuous investment in computing, networking and data infrastructure for data centers.
The best AI stocks to invest in span chip makers, software firms for enterprise and tech giants who use AI tools across a variety of applications. Consider cloud computing giants Amazon.com (AMZN), Microsoft (MSFT) and Google-parent Alphabet (GOOGL).
Tech Giants are among the top AI Stocks
Cloud computing giants offer AI analytical services to business customers.
Amazon is the only company that uses AI to tailor its the retail options on its website and to recommend items to customers on its website. The giant of e-commerce also utilizes robots and AI to run its fulfillment centers. Furthermore, AMZN stock leverages AI in its retail stores, as noted in the recently released Monness, Crespi, Hardt and Co. report to its customers. Over 30 Amazon Fresh U.S. retail stores plus over twenty Amazon Go U.S. stores and two Whole Foods Market stores use Just Walk Out payment technology.
Google is, naturally, makes use of AI to improve the understanding of complicated search queries, which allows it deliver relevant advertisements and web-based results. Plus, GOOGL stock uses AI tools in digital advertising.
In the meantime, Salesforce (CRM) rolled new AI-based tools during its Dreamforce customer event in September.
“We are delighted by the introduction of the AI platform Genie that is built upon a completely revamped Hyperforce platform that includes new data lakes and data ingest capabilities and also the ability to integrate to Snowflake (SNOW) and Amazon’s SageMaker machine learning library,” said Bank of America analyst Brad Sills in a report. “Genie could be a catalyst for AI powered workflow automation on multiple clouds , for negotiating multi-cloud deals.”
All AI software requires computing power in order to identify patterns and draw inferences from huge amounts of data. The race to develop AI chip for data centres, autonomous vehicles robots smartphones, drones, and many other gadgets.
In its annual spring conference the chipmaker Nvidia (NVDA) showcased its development tools based on software for creating artificial intelligence applications.
“Nvidia is developing an AI ecosystem that is growing as a norm,” Jefferies analyst Mark Lipacis wrote in a note. Nvidia competitor Intel (INTC) is, in turn seeks to keep pace with AI software development.
AI Stocks Software Market Key
The venture capitalist Marc Andreessen once observed how “software is taking over the world” by creating new industries via automation. Similar to this, artificial intelligence is predicted to transform software.
In the face of a shortage of software engineers programs, low-code tools make it simpler for businesses to create AI applications. DataRobot is one of the new generation of AI companies that are bringing low-code software to the market.
In the meantime, Snowflake and startups such as Databricks intend to disrupt the market for databases by analyzing lightning-fast “unstructured data” collected from sensors. One example is streaming video.
Databricks announced its new contributions to opensource projects during the recent AI Summit
However, the adoption of AI technology is only beginning. A majority of companies are still exploring AI technology, as per the findings of an Accenture (ACN) report. Only 12% of organizations are employing AI technology at a stage that gives them a significant competitive edge, according to Accenture.
However, it is expected that the AI computer market predicted to grow by 21.3 percent to $62.5 billion by 2022, according to the market-research firm Gartner.
Artificial Intelligence Stocks IBM Sells Watson Health
It’s not always easy to succeed. IBM (IBM) on January 1, sold Watson Health to private equity firm Francisco Partners. The transaction was reported to have been over $1 billion. However, IBM had made a bigger investment in Watson. In spite of the Watson defeat, IBM continues to acquire AI companies.
AI tools play an important role in the Facebook-parent Meta Platforms (META) legacy businesses and in new initiatives. In”the “metaverse, Meta said it is building a new supercomputer for artificial intelligence. It is dubbed”the AI Research Supercluster, the Meta computer is powered by chips from Nvidia.
While this is happening, Apple (AAPL) continues to expand its AI assets. Apple recruited the former Google scientists Samy Bengio. Bengio resigned from the company that was a major player in search engines amid tensions within its research department. Bengio is the head of a brand new AI research group within Apple with John Giannandrea. Bengio was hired by Apple in the year 2018 following more than an eight-year period at Google.
AI Stocks span Chips software, Internet Giants
Microsoft has in the month of April, 2021 purchased speech recognition software manufacturer Nuance Communications (NUAN), Nuance Communications is a company that makes artificial intelligence software extensively used in the health care industry. Additionally, Microsoft aims to deliver Nuance AI tools to health patients via their Azure cloud-based computing system.
Microsoft, Google and Nvidia have been removed from the IBD Leaderboard which is the IBD’s carefully curated list of the top companies that stand out in fundamental and technical metrics.
The world-wide AI semiconductor market will expand to reach more than $70 billion by 2025 rising from just $23 billion in 2020, according to the research firm Gartner.
AI technology employs algorithms that are computer-generated. The programs are designed to imitate human abilities to comprehend patterns, learn from them and draw conclusions.
“Machine training” is by far the most commonly used type of AI used in the workplace. Machine learning systems utilize massive amounts of data to train algorithms to detect patterns and to make predictions.
“AI workloads can be classified as either training or inference,” Oppenheimer analyst Rick Schafer mentioned in a recent report. “Training is the process of creating an AI model by repetition of data processing and learning. Training is computationally demanding, requiring the most sophisticated AI software and hardware. Most often, they are located in data centers that are hyperscale and we estimate the training market size at $21 billion by 2025.”
Software companies integrate AI Tools
AI companies to be on the lookout for include firms that offer information technology services like IBM, Accenture, and Epam Systems (EPAM).
The research firm IDC has estimated IDC that IBM, Accenture and Infosys have 28 percent from the market for artificial intelligence, which is estimated at $17 billion. IT market according to an Susquehana Financial Group report.
Tata Consultancy Services will partner with Walton Centre NHS Foundation Trust to create digital solutions for the care of patients. Tata Consultancy will develop an AI-powered chatbot that can assist in reducing the wait time of three months time required for patients to see an expert doctor.
Additionally, software firms are among artificial intelligence stocks to keep an eye on. Many software-as-a-service companies use AI tools.
For the collision and auto insurance industry, CCC Intelligent Solutions (CCCS) seeks to gain an edge by using AI instruments..
Bank of America recently upgraded Palantir (PLTR) to purchase the company, citing its AI ability.
Marketing software and digital media manufacturer Adobe (ADBE) during an event recently showcased cloud-based applications that allow businesses to create more personalized content for their customers at a larger scale.
Slew of Artificial Intelligence Stocks
C3.ai’s initial public offering C3.ai (AI) during the latter part of 2020 brought in $651 million. However, C3.ai has been slow since its IPO.
ZoomInfo Technologies (ZI) aims to gain an edge in marketing for business-to-business using artificial intelligence.
Zendesk (ZEN) has recently purchased Cleverly to enhance customer service.
Upstart Holdings (UPST) leverages artificial intelligence in the evaluation of auto and personal loan applications for banks. Upstart’s shares Upstart dropped in May due to poor estimates.
San Mateo, Calif.-based Coupa (COUP) bought Llamasoft which is a supplier of supply chain software powered by AI in the amount of $1.5 billion. Llamasoft’s clients are Boeing (BA) as well as Home Depot (HD).
Software for enterprises ServiceNow was conducting AI acquisitions. Under the new chief executive Bill McDermott, ServiceNow in the beginning of 2020 purchased two AI businesses, Passage AI and Loom Systems.
DocuSign (DOCU) will be purchasing DocuSign in the year 2020. has agreed to acquire Seal Software for $188 million. DocuSign employs artificial intelligence for contract analysis.
Artificial Intelligence Stocks Span Industries
For certain companies that are based in the U.S., it is the U.S. government is a important client. Also , in 2021 it was announced that it was announced that the U.S. commerce department formed the National Artificial Intelligence Advisory Committee. Additionally is the Department of Defense is accelerating the use of AI.
Additionally, AI competition is fierce across a variety of sectors. These include pharmaceuticals, financial services cybersecurity, and health care. The worldwide market for AI software used in retail applications will increase to $9.8 billion by 2025 in comparison to $1.3 billion at the time of 2019 estimates Omdia.
Additionally, Netflix (NFLX) utilizes AI to customize its online TV content for its subscribers.
There’s plenty of AI rivalry in the enterprise world of software.
Meanwhile, Salesforce’s Einstein tools improve sales forecasts. The AI software utilizes an organization’s historical lead and account data to identify the most likely deals to be closed. Salesforce has widened its Einstein tools to finance along with other industries.
In its earnings call for the quarter’s first quarter, Salesforce said its customers produced greater than 163 billion Einstein predictions every day, a jump from 100 billion in the previous year. However, Salesforce has yet to release the financial figures on the amount of revenue Einstein AI generates. Einstein AI platform generates, either directly or indirectly.
IBD 50: Companies Adopt AI
In e-commerceand e-commerce, Adobe’s AI tools can personalize content on websites to highlight products or services consumers on the internet are more likely to purchase. Additionally, Adobe also belongs to the IBD Leaderboard.
Additionally to that, it is worth noting that the IBD 50 roster of growth stocks includes artificial intelligence companies in business communications, and digital advertising.
Additionally, other businesses that make use of AI include:
Square-parent Block (SQ): Square Capital is part of the Block, a digital payment processor Block, offers credit to merchants. Square Capital uses an AI-driven credit assessment platform to approve new loans.
Match Group (MTCH) is controlled by the IAC (IAC), Match utilizes artificial intelligence to enhance its Tinder mobile dating application. Tinder’s brand new “Super Likable” feature makes use of machine learning.
Trade Desk (TTD) Trade Desk (TTD) digital advertising firm offers automated tools to assist customers purchase online ads and increase the ROI of their spending. The Trade Desk’s AI tools can identify the top websites to purchase ads on.
Digital Payment Firms in the Top 1% of AI Stocks
Here are some other AI stocks to look at:
Qualcomm (QCOM) is planning to offer an AI-ready modem to 5G wireless networks.
Five9 (FIVN) is a provider of cloud-based software for contact centers Five9 is currently developing algorithms for machine learning that can assist companies in automatizing customer support. Five9 is working with Google to develop AI call center technology.
Visa (V) as well as Mastercard (MA) Visa (V) and Mastercard (MA) credit card networks employ AI tools to spot financial crimes , such as money laundering and fraud. Additionally, banks of all sizes employ AI in chatbots which offer online customer support.
Omdia estimates it is likely that AI accelerators and chipsets that are used in “edge” apps will rise to $51.9 billion by 2025, a jump from $7.7 billion in 2019. The applications comprise mobile phone, automobile drones, security cameras, drones robotics, smart speakers and robots.
Additionally the memory chip makers like Micron Technology (MU) should see a boost in sales analysts believe. The reason for this is that smart devices will require storage capacity to process AI applications.
Applied Materials (AMAT) in March 2021 introduced an innovative optical inspection device, named ExtractAI. It is designed to identify chips with defects making use of AI software.
U.S., China Battle In Artificial Intelligence
Semiconductor manufacturers of equipment for manufacturing like Applied Materials expect AI to enhance demand for high-end equipment. Test equipment manufacturers like Teradyne (TER) could see boosts due to AI chips, too.
Furthermore it is also the case that U.S. is racing versus China and other nations to create Artificial Intelligence technology. In the early 2021s it was announced that the U.S. government placed restrictions on exports and import of AI software.
Additionally, the use artificial intelligence for facial recognition and other fields has been criticized. In addition, Alphabet CEO Sundar Pichai has demanded the regulation of artificial intelligence.
Investors who are interested in AI technology might also consider investing in TCW Artificial Intelligence Equity Fund (TGFTX). It’s intended for institutions, but it’s also available to investors who are retail.
The stocks of artificial intelligence are more scarce than you’d imagine. Numerous companies promote AI initiatives in technology or machine-learning. There are a only a few pure-play, public AI stocks. In general, you should look for AI companies that utilize artificial intelligence to enhance products or gain an advantage. Electric automobile manufacturer Tesla (TSLA) held…