What are some of the best artificial intelligence stocks to invest in?
As already mentioned AI stocks are on the rise and there are some companies that are prominent in the stock market and are performing quite well. These companies include Microsoft, Baidu, Nvidia, Google, and others. Let’s discuss them in a bit more detail.
Microsoft
Microsoft Corporation is an American multinational technology company. The mentioned company was founded in 1975 and is headquartered in Redmond, Washington U.S. Its founders are Bill Gates and Paul Allen. The revenue of the company according to 2020 data is US$143 billion and the worth of the total assets is US$301.3 billion. What’s more, it is worth mentioning that the company's subsidiaries are Linkedin, Skype Technologies, and GitHub.
Microsoft company is one of the top facilitators, which means that it provides a lot of the infrastructure, software, and services that are required to run artificial intelligence. The company is well-equipped to handle the power and the massive scale of artificial intelligence. Microsoft stocks are one of the artificial intelligence stocks to buy and it is worth noting that it’s not a cheap stock and has never been as they rarely ever dip. But with gigantic sales and impressive incomes, you can bet that Microsoft will be pouring gigantic amounts of money into AI initiatives in the near future.
There’s only a very small number of companies that can match Microsoft's already well-established infrastructure. Perhaps, AI's biggest growth delivery has been cloud computing and vice versa AI has also fueled cloud growth, as well.
So, it had to be people with connections that would really be able to do it but with the rise of cloud computing that access has now been granted to many different companies, governments and schools, and even individual people. Because of that Microsoft can be one of the Artificial Intelligence stocks to buy as the demand for the company’s stocks is rising rapidly and gradually.
People are already able to use fast computers along with inexpensive or sometimes even free storage and software virtually anywhere in the world through the use of the cloud. Cloud computing allows for the collection of enormous amounts of data as well and that’s very crucial for artificial intelligence. Because of the above-mentioned opportunities, the number of people who are using the company’s services is increasing, which has a significant impact on the price of company stocks. At the moment of writing this article, the price of Microsoft Corporation’s one share is 261.74 USD.
Google
Like Microsoft stocks, Google stocks are AI stocks to watch. Google is an American multinational company, which was founded in 1998. Its founders are Larry Page and Sergey Brin. The headquarters are located in Mountain View, California, United States, and Queenstown, Singapore.
According to the data of 2020 the company’s revenues are estimated at 182 527 000 000 United States dollar and the price of total assets is defined as 319 616 000 000 United States dollar (according to 2020 data).
Google can be considered to be the largest data collecting company in the entire world. Their financials are gigantic and very similar to Microsoft's. They’ve been doing over 160 billion in sales in 2020 alone and they're still expected to grow by over 10 percent in 2021 during one of the worst recessions in history. The mentioned statistics are one of the main reasons why Google stocks are some of the artificial intelligence companies stocks that could be worth buying.
What’s more, it should be said that it’s just an inevitable trend that more and more people will use the internet. And internet use will increase over the years and that’s where Google dominates, with the largest market share in several different categories including digital advertising, internet search with Google, internet browser with chrome, and mobile operating system with Android.
All of these are fueled even further by artificial intelligence and deep learning whether it’s to provide more accurate, relevant advertising and search results or to even improve other parts of this business where they may not completely dominate. But they could still be huge growth drivers for them in the future, for example, autonomous driving, healthcare, or cloud computing. Even though Google stocks are not cheap artificial intelligence stocks they are promising traders high payouts and returns.
It is worth mentioning that Google is pouring tons of money into healthcare. Google is using AI to predict injuries and diseases, days ahead of when they’d typically be diagnosed, improve the speed and accuracy of cancer screenings, improve the efficiency of electronic health records and even tap into genomic research which was called by Forex the most overlooked megatrend in the world.
All of the above-mentioned things, including healthcare-related, are significantly linked to artificial intelligence. What’s more, it should be said that Google doesn’t need a facilitator like Microsoft to rely on, since they are able to use their enormous resources to grow and compete at a high level even in the cloud computing market. Their Google cloud platform is already the third-largest in the world and is still managing to grow at very high rates. Because of its fast-growing tendency, Google owns AI company stocks to invest in.
Google has its hand in just about every aspect of artificial intelligence and that makes them one of the best choices as a long-term stock market investment especially considering the future of AI. At the moment of writing the article, the price of one Google share is estimated at 2 282.75 USD.
Baidu
Baidu it can be said that is a Chinese analog of Google. The company was founded in 2000 and its headquarters is situated in Beijing, China. Its founders are Robin Li and Eric Xu and the revenues of the company, according to the 2018 data are defined as CN¥102.3 billion and the worth of the company’s total assets is CN¥297.566 billion (2018).
Baidu stock is one of the artificial intelligence technology stocks that are worth investing in and there are several reasons behind it.
It’s not a secret that China has always tried to compete at the highest level on a global scale and they definitely try to compete heavily with the United States and that’s especially the case with artificial intelligence. Obviously, China is going to be one of the leaders in AI. So owning the Chinese version of something like Google actually does make some pretty good sense.
Baidu dominates the market with over 70 market shares in cloud computing. Baidu cloud doesn’t really have any meaningful market share worldwide but domestically they still manage to be the fourth largest cloud provider at around 8% of the market. And a big reason behind that is their huge investment in artificial intelligence where they’ve already trained over a million AI talents.
AI tech stocks owner company has partnered with over 200 universities for AI research and they plan to build over 5 million intelligent cloud servers by 2030. According to them, their cloud computing capability will be 7 times stronger than the combined power of the world's top 500 supercomputers.
We don’t know whether it will happen in the future or not but the fact that they're aiming so high
means that they're obviously taking it very seriously. In fact, that high dedication seems to
already pay off as the international data corporation believes that China's AI cloud services market will grow at an annual rate of almost a hundred percent through 2024 and Baidu will be the market share leader of it.
Baidu is even a huge player in autonomous driving with their apollo division which became the first company to launch a publicly available Robo-Taxi service in Beijing. So, depending on the above-given information and the tendency of the company's growth Baidu stocks can be one of the artificial intelligence stocks to buy.
Nvidia
Nvidia is an American computer systems design services multinational company, which was founded in 1993. Its founders are Jensen Huang, Chris Malachowsky, and Curtis Priem and the company’s headquarters are situated in Santa Clara, California, United States.
According to the 2020 data, Nvidia’s revenues are 10.92 billion dollars and the price of total assets is estimated at 17.32 billion US dollars (2020).
Nvidia is the company that powers artificial intelligence especially through the use of their very powerful processing chips and their innovative software. The prices of Nvidia stocks have grown over 1500% from 2016 and according to the 2020 data, the total number of sales is 10 billion.
Nvidia stocks can be one of the AI stocks 2021 because of their future potential, especially in artificial intelligence. For example, Nvidia estimates that its total addressable market for data centers will surpass 100 billion dollars by 2025. Their new class of processors called DPUs can single-handedly deliver data center services that would normally consume up to 125 CPU cores which are quite efficient for customers.
Nvidia is now expected to reach even more customers. To give you an idea of how big the opportunity is for Nvidia their data center addressable market of over 100 billion dollars is around 10 times larger than all the sales they did.
It is worth noting that the above-mentioned companies, including Google, Microsoft, Baidu are controlling huge data center platforms, and Nvidia powers many of those servers with their systems and chips.
When you look specifically at artificial intelligence, Nvidia has a really good shot at powering a lot of it. So looking out long term, there’s a lot of growth potential with Nvidia. At the moment of writing this article, the price of Nvidia’s one share is 646.63 USD.
Splunk Technology
Splunk Technology is a software company, which was founded in 2003. Its headquarters is situated in San Francisco, California, the U.S. and the company’s founders are Michael Baum, Rob Das, and Erik Swan.
One of the best AI stocks to buy in 2021 is Splunk stock. The company makes software for searching, monitoring, and analyzing machine-generated big data, while web style interfere. The technology is used for application management, security, and compliance, as well as business and web analytics.
Currently, at the moment of writing this article, the stock is 139 dollars with a market cap of 22.5 billion dollars. In 2021 March the company reported pretty solid Q4 earnings for the quarter. The company posted revenue of 745 million which was down by six percent for a year ago, in 2020. However, the tendency of the company and the way it develops is quite optimistic.
For conducting the above-mentioned processes the company uses artificial intelligence. Through AI the company allows customers to get analyzed data in a few seconds. Because of its stocks gradually and rapidly increasing tendency, it can be one of the best stocks that are worth investing in 2021.