FMP

FMP

Enter

5 Best AI Stocks to Invest in Right Now

-

twitterlinkedinfacebook
blog post cover photo

Image credit: Andrea De Santis

AI stocks are drawing huge attention from investors globally with the growing popularity of artificial intelligence-based products and services.

AI is a modern technology involving machines that mimic the human brain through various concepts like neural networks, machine learning, deep learning, natural language processing, etc. in order to perform cognitive functions.

Now, AI-powered applications and machines are used in almost every sector, from IT to manufacturing, automobile, agriculture, defense, and beyond. The applications include spam filtering in emails, trading, digital healthcare, self-driving cars, and many more.

So, from top global companies to small-scale companies and startups, all are getting involved in AI in one way or another.

In this article, we'll discuss what AI stocks are, their benefits, and the top AI stocks you can invest in today.

What Do You Mean by AI Stocks?

Artificial intelligence (AI) stocks are the stocks, equities, or financial securities of a company that offers AI-powered products and/or services.

AI stocks include chipmakers, cloud computing service providers, software companies, and other giants in the technology domain. These stocks can be of two categories:

  • Blue chip tech companies (well-established companies) partnered with artificial intelligence developers. These are Apple, Amazon, Alphabet, IBM, Verizon, Microsoft, etc.
  • Smaller companies with their complete focus on AI development. These can be OpenAI, Jasper, Synthesia, Grammarly, and many more.

Why Invest in AI stocks?

There's no better time than now to invest in AI stocks. Here are some reasons to support this:

Growing Industry

The AI industry is expanding rapidly and is expected to continue growing in the future too.

According to a report, the global AI market size in 2022 reached US$ 136.55 billion and can expand at 37.3% CAGR between 2023-30.

Given the popularity of AI, many companies globally are creating AI-powered products and services. So, this is creating a potentially beneficial ground to reap larger returns on your AI stock investments.

Higher Adoption and Returns

Now, AI is being used in almost every sector, transforming lifestyles and businesses. From a simple Google search for personalized recommendations to building sophisticated systems for manufacturing, AI is witnessing massive adoption worldwide. This large market size indicates greater returns.

Innovation

AI is still in its early stages and we are likely to see many more innovations in the field of AI in the upcoming years. This could lead to exciting opportunities for individuals and businesses alike. This means this market will be thriving and so your investments in AI stocks.

Diversification

As an investor, your investments in AI stocks will allow you to diversify your portfolio. Since many industries are using AI, you will get exposure to different sectors. In turn, it will help minimize risks while rendering a more stable investment portfolio.

While there are a number of advantages of investing in AI stocks, some risks are also present such as high market volatility, huge competition, cybersecurity issues, regulatory changes, technology limitations, and so on. So, be careful while investing in AI stocks, stay updated with industry news, and use real-time financial data.

Now, let's talk about some of the top AI stocks you can invest in.

NVIDIA (NASDAQ: NVDA)

With a market cap of $1.2 trillion, NVIDIA is one of the best options where you can invest in AI stocks. It's providing AI breakthroughs in a multitude of applications to companies from across the world.

Today, 35k+ companies, small and large, are using NVIDIA's AI platform to build AI-powered products and services. This leading semiconductor company develops high-end graphic processors and chips for smartphones, laptops, tablets, video games, self-driving cars, etc. to enable optimal AI software performance.

According to Insider Monkey, NVIDIA's stock went up by 215.39% in the past 12 months by 240.79% year-to-date (YTD) when the market closed on August 29. In Q2, its hedge fund investments rose to $26 billion which was $12.3 billion in Q1.

Palantir (NYSE: PLTR)

Founded in 2003, Palantir Technologies Inc. is a leading provider of AI-powered services and products to private organizations, governments, and defense institutions. It empowers them to build AI solutions to meet growing challenges and make better decisions.

According to Forrester, Palantir was a leader in AI/ML platforms in Q2 2022. As of August 2023, it showed about 97.69% growth in its stock prices in 1 year and 141% overall. It has 39 hedge fund holders and a combined stake of $4.9 billion.

Symbotic Inc. (NASDAQ: SYM)

Symbiotic Inc. is an AI-powered robotic technology platform that offers warehouse automation to transform the way goods move in a supply chain. It deploys sophisticated robots in an end-to-end, high-density system to increase efficiency, flexibility, and speed.

Operating in the US and Canada, Symbiotic Inc. showed a revenue growth of 177% year-over-year. Some of its customers include big names like Walmart. It also recently partnered with SoftBank, a Japanese telecom service company to start a joint venture with $100 million of investment.

As of August this year, it has shown 220.28% growth in its 1-year stock prices. In Q2, it had 8 hedge fund holders. With $24.711 million worth of stakes.

Broadcom (NASDAQ: AVGO)

Broadcom is a computer software and semiconductor company that uses AI in its broadband communication systems and devices and set-top boxes. It offers broadband Wi0Fi AP solutions, financial services solutions, data center solutions, broadband access solutions, enterprise security solutions, and industrial automation solutions.

In Q3, it generated a revenue of $8,876 million, which is 5% more than the previous year. This result was driven by the user demand for next-gen networking technologies since their hyperscale customers want to scale out and network AI clusters within data centers.

Broadcom also has plans to acquire VMWare for $61 billion, which will further make it a great choice for you to invest in its AI stocks.

C3.ai (NYSE: AI)

Founded in 2009, C3.ai is an American company that delivers an extensive platform for Enterprise AI app development. It also has a large family of about 40+ turnkey AI applications for enterprises.

The company focuses on AI and if you want to invest in a “pure AI stock”, C3.ai could be your best bet. It caters to industries including manufacturing, government, financial services, utilities, chemicals, oil and gas, defense, agribusiness, and more. It has grabbed high-ticket customers from the likes of the US Air Force, Philips, NY Power Authority, Shell, and more.

C3.ai is a rapidly growing AI stock and has shown decent growth in its stock prices. In Q2, it had 23 hedge fund holders with a $116.455 million combined stake.

Conclusion

Investment in AI stocks today can yield better returns and opportunities tomorrow since artificial intelligence is growing and reaching new heights every day.

So, consider the top AI stocks as discussed above to invest in since they have the potential to give you better returns in the future. But it's always crucial to approach investing with caution and careful consideration. The financial world can be both rewarding and challenging, and to make informed decisions, one must rely on thorough research and analysis. We strongly recommend always performing fundamental analysis before making any investment choices. A valuable resource is our financial data API , where you can access a wealth of financial data and tools to assess the health and potential of your investments. By utilizing such resources, you empower yourself with the knowledge needed to navigate the financial markets wisely and mitigate risks effectively. Remember, informed decisions are the foundation of successful investing.

Our API offers real-time stock prices, 30 years of stock historical info, financial statements.

Other Blogs

May 27, 2024 3:30 PM - Rajnish Katharotiya

The best 5 GPU stocks other than NVDA

In the ever-evolving world of technology, certain sectors have consistently demonstrated exceptional growth and innovation. The graphics processing units (GPUs) industry is one such sector, offering investors a golden opportunity for potentially high returns. In this blog, we'll delve into why inves...

blog post title

Jun 6, 2024 2:47 AM - Parth Sanghvi

ROE vs ROA: Which Metric is More Important for Investors?

ROE vs. ROA: Which Metric is More Important for Investors? When evaluating a company's financial performance, investors often rely on various metrics to gauge profitability and efficiency. Two commonly discussed metrics are Return on Equity (ROE) and Return on Assets (ROA). Understanding the diff...

blog post title

Jun 6, 2024 2:57 AM - Parth Sanghvi

DCF vs NPV: Which Valuation Method Should You Use?

When it comes to valuing an investment or a business, two of the most commonly used methods are Discounted Cash Flow (DCF) and Net Present Value (NPV). Both methods are essential tools in finance, but they serve slightly different purposes and are used in different contexts. This guide will explore ...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedinfacebookinstagram
2017-2024 © Financial Modeling Prep