Finally, there are pure plays on AI like the publicly traded company c3.ai. The stock makes the best AI stocks list because of its strong yearly performance as well as analysts projecting strong EPS growth over the next five years. Analysts predict a move into profitability in 2024, with an EPS estimate of 48 cents per share. The stock price is up over the last year, but the company hasn’t produced positive earnings yet.
Offerings include purpose-driven software suites for supply chain optimization and energy efficiency, and industry-specific solutions for financial services and oil and gas. With all that potential, some investing experts are tagging AI as the “next big thing” a man for all markets in technology (even though AI goes back to the 1950s). Below are 12 AI stocks to research, plus a quick review of popular AI business applications and the AI terms you need to know.
ServiceNow, Inc. (NOW)
The broad efficiency opportunity is exciting for investors, because it can create a steep demand curve for AI tech. As early adopters find success, others will follow How to buy bitcoin under 18 suit just to remain competitive. AI’s sweeping applicability has the potential to transform business processes across many industries. Businesses can leverage the power of AI to analyze massive data sets from disparate sources to find new efficiencies and create more engaging customer experiences. AI can also automate tasks, freeing up human resources for higher-level responsibilities.
A Look at the Risks
The current macroeconomic environment could also affect the company’s growth trajectory, posing further uncertainty for investors. These real-world examples demonstrate the tangible benefits and value proposition of C3.ai’s applications. However, that optimism isn’t supported by the fundamentals of Tesla’s business, which looks to be on a slower growth trajectory than its current stock price implies, the analysts said. Investors are feeling bullish that Elon Musk’s ties to the President-elect Narrative and Numbers will be positive for Tesla. The company was reportedly onboard with ending the EV tax credit, which analysts have said would primarily hurt Tesla’s competitors.
Deep learning stocks
- “So far, we’re sticking with more of the mega-cap tech companies,” Brenner says, referring to FBB Capital Partners’ AI portfolio.
- It has strategic partnerships with Google Cloud, AWS, Microsoft Azure, Baker Hughes, Booz Allen, Raytheon, FIS, and others.
- The stock was an excellent performer in 2023 and is currently trading near a 52-week and all-time high.
Microsoft has gotten a lot of buzz of late, thanks to its partnership with OpenAI. The tech giant began investing in the tech start-up in 2019 and recently invested another $10 billion in OpenAI following the launch of ChatGPT. Its professional visualization segment, which includes its omniverse, also has a lot of potential in AI. Nvidia’s GPUs could someday be supplanted by more specialized processors designed for AI, but the company is in an enviable position for now. In a short demo video intended to showcase Bard’s power, the chatbot gave an incorrect answer.
If Nvidia can maintain its lead in AI chips, the stock should continue to be a winner, but the stock will likely be volatile since the AI landscape is still developing. Microsoft is also harnessing the power of AI in other ways, including automated clinical documentation in healthcare to reduce paperwork and administrative needs. Additionally, it’s using Azure to allow customers to build custom AI tools.
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Nvidia isn’t guaranteed to remain the leader; competition is on the way. Artificial intelligence is likely to shake up the economy and the business world, creating opportunities in the stock market as that happens. Whether AI is good for investing will depend on the company, but there will be winners from the new technology.
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SYM did report margin improvement in its most recent quarter, which helped the company achieve its first quarter of positive adjusted Ebitda. Micron is also using AI internally to optimize its own processes. Growing efficiency coupled with higher demand sets MU up for nice returns ahead. The most immediate opportunity is in deploying more advanced AI analytics tools to inform search results and advertising placement.