Top 10 Best AI Companies on Stock Market
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| Top 10 Artificial Intelligence(AI) Companies on Stock Market |
Robots, Artificial Intelligence (AI), and automation are changing the face of almost every market. Many businesses are now boasting about their AI product roadmaps. Generally speaking, you should seek out AI stocks that employ AI to enhance their products or obtain a competitive advantage.
Stocks in semiconductor manufacturers, software developers, cloud computing providers, and tech behemoths are all good bets when it comes to artificial intelligence. The big question is how much incremental revenue cloud computing giants are getting from AI-related investments amid increased capital spending.
What are AI stocks?
When you buy AI stocks, you are buying shares in companies that work with AI. AI has a lot of uses, so there are a lot of different AI stocks: Some AI companies make software that can recognize voices. Others make planes that don't need pilots.
AI stocks usually belong to one of two groups: large technology companies that have invested in or teamed up with AI developers, and small, experimental companies whose only goal is to develop AI.
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Top 10 Best AI Companies on Stock Market
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| Top 10 AI Stocks |
Microsoft Corp. (MSFT)
Microsoft has put $13 billion into OpenAI and added ChatGPT to its search engine Bing. Microsoft has also put all of its AI copilots into one experience, which it calls Microsoft Copilot. The company released its first Responsible AI Transparency Report in May. It explained the company's AI practices, its AI goals, and its accountability efforts to the public. Analyst Joseph Bonner says that Microsoft is putting a lot of money into AI by developing it internally and buying shares in AI startups outside of Microsoft. Satya Nadella, CEO of Microsoft, wants to focus on generative AI opportunities. Argus rates MSFT stock as "buy" and sets a price target of $526. The stock closed on August 8 at $402.69.
Alphabet Inc. (GOOG, GOOGL)
Alphabet, which owns Google and YouTube, uses AI and automation in almost every part of its business, from pricing ads to promoting content to getting rid of spam in Gmail. In March 2023, Google released the Bard AI chatbot. Google announced Gemini in December 2023. It is the company's smartest and most advanced AI model to date. Google launched AI Overview in May. This is a service that puts summaries made by AI at the top of Google search results. Bonner says that Google is working to make its Gemini advanced AI model part of all of its technologies. It says that GOOGL stock is a "buy" and sets a price target of $200. On August 8, the stock closed at $162.03.
Amazon.com Inc. (AMZN)
Amazon has used AI in all parts of its business, such as its targeted ads, Amazon Web Services (AWS), marketplace search and recommendation algorithms, and more. Amazon's AWS cloud customers can use a lot of AI and machine learning services, such as chatbots, advanced text analytics, and automated code reviews. It is said that Amazon will spend $100 billion over the next ten years building a network of AWS data centers that can handle the huge amount of work that AI needs to do. Analyst Jim Kelleher says that the push for AI cloud services has given AWS a new lease on life. ARGS rates AMZN stock as "buy" and sets a $205 price target for it. On August 8, the stock closed at $165.80.
Nvidia Corp. (NVDA)
Advanced AI programs need a lot of processing power, which is provided by the high-end chipmaker Nvidia. In the past few years, Nvidia has been one of the best-performing stocks in the market. This is mostly because the company has a lot of exposure to AI. As of recently, Nvidia's CEO Jensen Huang said the company would start making and selling new AI chips every year instead of every two years like it used to. Kelleher says that Nvidia's Blackwell platform lets trillion-parameter large language models use generative AI. Argus rates NVDA stock as "buy" and sets a $150 price target for it. On August 8, the stock closed at $104.97.
Meta Platforms Inc. (META)
It is the parent company of Facebook, Instagram, and other platforms. Meta Platforms is a market leader in social media and online advertising. Meta is said to be planning to give businesses free AI chatbots for customer service on its WhatsApp messaging app. It will be interesting to see how CEO Mark Zuckerberg's bold plan to make Meta's AI technology free and available to everyone works out. He wants to gain market share and drive down the prices of competitors. Bonner says that Zuckerberg has built up large customer bases over and over again and then turned them into money. Argus rates META stock as "buy" and sets a price target of $600 for the stock. On August 8, the stock closed at $509.63.
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Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)
The largest pure-play semiconductor foundry in the world is Taiwan Semiconductor Manufacturing. TSM makes all of Nvidia's and other AI chipmakers' most advanced AI semiconductors. China Semiconductor's CEO, C.C. Wei, said in June that demand driven by AI makes him "very optimistic" about the company's future for the next few years. Kelleher says that the rise of AI technology, along with lower inflation and a rise in demand for electronics, will help TSM grow its revenue steadily. The company thinks that the demand for semiconductors around the world will rise by 10% in 2024. It says that TSM stock is a "buy" and sets a price target of $200. On August 8, the stock closed at $164.55.
Adobe Inc. (ADBE)
Adobe makes software for making creative content as well as marketing and e-commerce apps. People are interested in the company's Firefly generative machine learning model for Photoshop, Illustrator, and other programs. Adobe has also added its Sensei AI and machine learning technology to Adobe Campaign, Adobe Analytics, and Adobe Target. Adobe recently said it would not train its AI models on content uploaded by users. This came after artists said the company was selling AI copies of their work. Bonner says that Adobe will keep adding more AI features to all of its products. Argus rates ADBE stock as "buy" and sets a price target of $675. The stock closed on August 8 at $530.24.
ASML Holding NV (ASML)
ASML makes photolithography systems and other processing tools that are used to make semiconductors. Extreme ultraviolet lithography equipment is needed to make advanced AI chips, and ASML is the only big company that makes it. Most of ASML's business comes from Taiwan Semiconductor and Samsung Electronics Co. Ltd. (OTC: SSNLF). Nvidia depends on Samsung and TSM to make the AI chips that Google and Microsoft are buying in huge quantities for their data centers that can use AI. Kelleher says that demand for ASML products will continue to be supported by generative AI applications and high-end edge devices. Argus rates ASML stock as "buy" and sets a price target of $1,250 for the stock. On August 8, the stock closed at $876.65.
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International Business Machines (IBM)
Watson, IBM's AI supercomputer, has been being worked on for years to find new ways to change health care, finance, the law, and education. IBM's Watson AI solutions include tools that can help with customer service, automating work processes, and guessing what will happen. Watson Studio from IBM even helps business customers make their own AI apps. IBM added a number of new features to its Watson AI assistant in June. IBM's consulting business has been weak, but Kelleher says sales of AI and hybrid clouds have helped make up for it. He says that AI will be very important to IBM in the future. It says that you should "buy" IBM stock, which closed on August 8 at $190.94, and sets a price target of $225.
Arista Networks Inc. (ANET)
Internet companies, cloud service providers, and enterprise data centers can all get cloud networking solutions from Arista Networks. High-performance cloud networking solutions and high-throughput data center switches from Arista give AI workloads the processing power they need. For its recent sales growth guidance that beat Wall Street's expectations, Arista said that AI applications and cloud computing companies were driving demand for networking gear. Kelleher says that Arista is the leader in cloud networking for businesses and data centers and is the only company that can really benefit from the growth of AI cloud services. It says that ANET stock is a "buy" and sets a price target of $390. The stock closed on August 8 at $334.50.
Best-Performing AI Stocks for 2024
The value of AI stocks has grown a lot in 2024. A lot of attention has been on NVIDIA because of its huge value increase. In June 2024, it briefly passed Apple and Microsoft to become the world's most valuable company.
But in the past few weeks, there's been some talk that the excitement around AI might be overblown or that geopolitical issues could stop the development of semiconductors, which is necessary for AI to succeed. In fact, NVIDIA's time at the top didn't last long. By late July, its market cap had dropped below $3 trillion, putting it back behind Apple and Microsoft.
But for people who think AI will be useful in the long run, price drops may just be chances to buy, as some analysts have said.
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| 7 best-performing AI stocks |
In Conclusion
Companies that fail to invest in AI products and services, such as machine learning, large language models, smart applications and appliances, digital assistants, synthetic media software, or autonomous vehicles, are at risk of becoming obsolete. Numerous companies have the potential to gain advantages from AI, but only a few stocks have AI and automation as integral components of their operations. Presented above are the top 10 AI stocks that are recommended for immediate purchase.
FAQs
How to invest in AI stocks
If you've never traded stocks before and want to buy AI stocks, the first thing you need to do is open a brokerage account.
After that, you'll need to choose what kind of AI stock exposure you want. Individual AI stocks might give you big returns, but you have to be willing to take on a lot of risk, pay a lot of money up front, and do a lot of research.
For another choice, you can use AI-focused exchange-traded funds to buy stocks.
Could we be in an AI bubble?
Some small businesses have seen their stock prices rise quickly after being mentioned in any kind of AI news in early 2023. BuzzFeed's (BZFD) stock price went up more than 85% the day after a news story came out about a partnership with OpenAI to make an AI-powered article writer. This happened in January 2023.
Should you invest in AI stocks?
Before buying individual stocks or ETFs with a narrow focus, investors should give it some thought. You might be taking on more risk with targeted investments compared to broad investments like S&P 500 index funds, which have an average annual return of about 10% over the long term, not including inflation.
Putting no more than 10% of your total portfolio into individual stocks is one rule of thumb that can help you limit that extra risk.
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