By Ali Hassan
2:25 AM UTC
The rise of artificial intelligence, automation, and robots is disrupting virtually every major industry and business. Top AI companies’ stocks are rarer than you might think. Many companies tout AI technology initiatives and machine learning. But there really are few Top AI companies, if any, public, pure-play artificial intelligence stocks.
However, every company in today’s world is somehow involved in dealing with AI. From machine learning to the internet of things, to smart appliances and autonomous vehicles, companies that aren’t developing and incorporating AI into their businesses run the risk of becoming obsolete.
Some companies will benefit from the development of AI, such as chipmakers and software developers. But many, many more companies will become winners because of easy, economical access to AI.
According to forecasts market research firm Gartner, the AI software market is expected to jump 21.3% to $62.5 billion in 2022. Whereas, as per a report by Grand View Research, the global AI market is expected to reach $997.7 billion by 2028 and grow at a compound annual growth rate of 40.2%.
We have compiled the five best AI stocks to get in early for high profits in the long term.
Nvidia (NVDA) is the leading provider of AI chips for cloud computing and other applications. Nvidia’s data center business represents a steadily increasing share of the company’s total revenue. This segment isn’t all AI-related. However, Nvidia’s graphics cards are used to accelerate a wide variety of data center applications. But AI is one of the driving forces behind the company’s growth.
Nvidia recently announced that it continues to extend its AI inference performance leadership. Through x86 or Arm-based CPUs, the company is exploiting the AI marketplace. This would be the third consecutive time that Nvidia has set records in performance and energy efficiency on inference tests from MLCommons. This would also be the first time that its data-center category tests have run on an Arm-based system. That gives users more choice in how they deploy AI.
Analyst Vivek Arya believes that Nvidia’s Edge AI will generate $15 billion in revenue by 2024. NVDA is a solid AI stock that can give you huge profits if you invest early.
Pinterest (PINS), a popular visual search platform where people discover and save ideas. The company invests heavily in artificial intelligence, often in ways that might not be obvious to a casual user.
By using AI to analyze mountains of data, Pinterest tailors search results for each of its hundreds of millions of users. That’s a big reason why Pinterest considers itself “at its core, a data and Top AI company.”
PINS stock has had a poor 2021 and is currently trading just above its 52-week lows. The general mood on Wall Street is edgy these days. The indices are swinging wildly coming into the end of 2021. In recent times, due to market uncertainty, we can not be so sure about how a stock would perform in short term. Pinterest has been under the same radar.
Despite reporting a rise in global monthly active users by 30% during the first quarter, revenues soared over 78% to $485 million. PINS stock had a tough year. However, Pinterest being on the low side of the market is in a high upside position.
Artificial intelligence can be deployed in any social media ecosystem. It can be particularly effective with Pinterest because users go to the site seeking knowledge, and not necessarily engagement. PINS stock could be a good go if you’re looking for an AI stock.
One of the all-time tech greats, International Business Machines (IBM) needs no introduction at all. The company has been there for decades ruling the computing world. But now, it’s the time to diversify and that’s where IBM is investing.
IBM has been developing ways to adapt its AI supercomputer Watson to revolutionize health care, finance, law, and academia. Unfortunately, programs like Watson for Genomics and Watson for Oncology didn’t live up to expectations. Still, Watson recently performed as well as or even better than AI services from Amazon, Microsoft, and Google. The company’s Watson AI question-answering software is capable of communicating with people through machine learning.
IMB expanding its research into the area of AI hardware should not come as a shock as IBM do want to put itself on the list of Top AI Companies. Venture Beats reported back in June 2018 that IBM had designed a power-efficient chip for AI processing. IBM published a paper describing their designs and how they were using analog memory in the process of training neural networks.
Recently, IBM signed a multi-year contract with the Spanish telecommunications company, Telefonica. The deal is to use intelligent automation software to implement a 5G core network platform.
The AI push can help IBM stock soar over $200 in the near long-term. Currently, Bank of America has given the stock a price target of $172.
CrowdStrike (CRWD) is a fast-growing cloud-based cybersecurity company that applies AI in its applications. For starters, its Falcon endpoint security platform is powered by AI, which runs on the company’s proprietary Threat Graph database.
The cybersecurity company utilizes powerful self-learning artificial intelligence that gets smarter as it consumes more data. CrowdStrike continues to grow at double-digit rates and is providing a rare opportunistic pullback for prudent investors. CRWD wants to gain exposure as a leading cybersecurity player, as well as an AI leader.
CrowdStrike offers a set of cloud-delivered technologies that provides a wide range of products including antivirus, endpoint detection, and many more. More importantly, the company crowdsources data from millions of endpoints. Then leans on AI to block even the most sophisticated attacks.
During the third quarter, the company announced the availability and FedRAMP authorization of CrowdStrike Falcon Forensics. The speed of response is crucial to help agencies prevent security incidents from turning into breaches. That’s where CrowdStrike has been able to leverage its AI expertise to compete with Top AI Companies.
Micron Technology (MU) manufactures memory chips, including dynamic random-access memory and NAND flash memory. Micron’s technology is powering a new generation of faster, intelligent, global infrastructures that make mainstream artificial intelligence possible.
In 2021, demand for memory chips is strong, boosted by the growth of mobile networks, 5G, cloud computing, and a recovery in the automotive sector. While a shortage in semiconductors has helped lift prices for Micron’s DRAM and NAND chips.
In the future, demand for memory chips will only grow, and that’s especially true in the AI industry. Self-driving cars are a good example. All the sensors and cameras produce a lot of data. Probably around 1 GB per second, according to Micron estimates. Data centers running AI processes need plenty of memory and so do smartphones that may be doing AI work. Newer iPhones, for instance, use AI with the camera function to produce improved images.
Micron will likely remain volatile due to the nature of its business. Even though AI is driving increased demand for memory chips, in the long run, supply and demand reign supreme in the short term. If you have the digest investing in a volatile stock then MU isn’t a bad way to bet on AI.