The industry now offers a wide range of prospects thanks to the development of artificial intelligence. Almost every industry is evolving due to automation, robotics, and artificial intelligence. Over the past year, OpenAI, Microsoft, and Google have provided the public with direct access to impressive advancements in AI technology.
Businesses that don’t invest in artificial intelligence (AI) products and services run the risk of being left behind. Examples of AI applications and services include machine learning, massive language models, digital assistants, smart appliances, digital applications, and synthetic media software. While AI has enormous potential for businesses, just a small number of stocks have automation and AI at the core of their operations. The The Top 10 Artificial Intelligence Companies in Stocks to purchase are listed below:
1. Microsoft Corp. (MSFT)
Microsoft announced in 2019 that it will invest $1 billion in ChatGPT producer OpenAI. In January 2023, the investment was upped to $13 billion, and shortly after, ChatGPT was integrated into Microsoft’s Bing search engine.
Microsoft stated in September 2023 that it is combining all of its AI products under Microsoft Copilot, a unified AI experience. It has been stated that OpenAI’s new AI model, Q* (pronounced “Q star”), has made tremendous strides lately. Microsoft’s dividend, according to analyst Joseph Bonner, is secure, and the business is well-positioned for long-term development because to its continuous investments in cloud services and AI. The price target of $475 and a “buy” rating of Argus are set for the MSFT stock, which ended at $405.65 on February 5.
2. Alphabet Inc. (GOOG, GOOGL)
AI and automation are used by Alphabet, the parent company of Google and YouTube, in almost every aspect of its operations, including Gmail spam filters, ad pricing, and content promotion. In March 2023, Google introduced its Bard AI chatbot. Google incorporated Bard into its entire toolkit in September, which includes YouTube, Google Drive, and Google Flights. Google unveiled Gemini, its most powerful AI model that integrates several media formats, in December. According to Bonner, Google thinks Gemini is the most potent AI system available today. It is also quite versatile. With a target price of $170, Argus maintains a “buy” rating on GOOGL shares, which closed at $143.68 on February 5.
3. Amazon.com Inc. (AMZN)
Amazon has integrated AI into every aspect of its business, including targeted advertisements, marketplace search and recommendation algorithms, and Amazon Web Services. The company offers a wide range of AI and machine learning services to its cloud customers, including advanced text analytics, automated code reviews and chatbots. In September, Amazon integrated generative AI capabilities into its Alexa personal assistant that allows it to express opinions. Analyst Jim Kelleher says the integration of AI technology may be a shot in the arm for Amazon’s slowing AWS growth. Argus has a “buy” rating and $185 price target for AMZN stock, which closed at $170.31 on Feb. 5.
4. Nvidia Corp. (NVDA)
Nvidia, a high-end chip manufacturer, offers the enormous processing capacity required to operate sophisticated AI applications. Because of its exposure to AI, Nvidia was the best-performing stock in the whole S&P 500 in 2023. Despite new U.S. export limitations on high-end chips, Nvidia was able to quadruple its year-over-year sales in the most recent quarter thanks to demand for its graphics processing units driven by AI.
Nvidia’s soaring stock enjoys an unmatched position in the deep learning and artificial intelligence sectors. With a target price of $600, Argus maintains a “buy” rating on NVDA shares, which closed at $693.32 on February 5. Following the announcement of Nvidia’s third-quarter earnings, investors can anticipate updated research following the company’s fourth-quarter report, which is anticipated on February 21.
5.Meta Platforms Inc. (META)
Social media and online advertising pioneer Meta Platforms is the company behind Facebook, Instagram, and other platforms. According to reports, Meta is working on a new AI system that aims to match the strength of the most sophisticated OpenAI model. Additionally, it has been stated that the corporation is exploring more than 20 generative AI features on all of its platforms, including improvements to corporate messaging, search, and advertising. According to Bonner, Meta will keep incorporating AI capabilities across all platforms in order to increase productivity and increase user revenue. With a target price of $550, Argus maintains a “buy” recommendation on META stock, which closed at $459.41 on February 5.
6. Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)
The biggest pure-play semiconductor foundry in the world is called Taiwan Semiconductor Manufacturing. All of Nvidia’s and other AI chipmakers’ cutting-edge semiconductors are produced by Taiwan Semi. Despite a decline in the market for smartphones and electric vehicles, Taiwan Semi recently stated that the company will see a 20% increase in sales in 2024 thanks to the demand for its high-end AI processors.
Taiwan Semi, according to Kelleher, is the top investment for merchant fabrication. need for enterprise generative AI is growing, and according to Kelleher, limits imposed by the US on technology sales to China will not significantly affect this need. The price target of $130 and a “buy” rating, respectively, are set for TSM stock, which ended the week at $118.79.
7. Adobe Inc. (ADBE)
Adobe creates programmes for marketing and e-commerce in addition to creative content software. Customers are showing interest in the company’s Firefly generative machine learning model on platforms like Photoshop and Illustrator. Additionally, Adobe has integrated machine learning and artificial intelligence (AI) into its Adobe Analytics, Campaign, and Target solutions.
The business’s vice president of generative AI, Alexandru Costin, informed TechRadar at the CES 2024 conference in January that Adobe is changing from a software company to an AI company. Bonner claims that Adobe’s investments in generative AI will enable them to quickly grow its total addressable market. The price target of $675 and a “buy” rating of Argus are set for the ADBE shares, which ended the week at $630.50.
8. ASML Holding NV (ASML)
In order to facilitate the production of semiconductors, ASML manufactures processing equipment and photolithography systems. The sole significant manufacturer of the extreme ultraviolet (EUV) lithography tools required to create cutting-edge AI circuits is ASML. The CEO of ASML, Peter Wennink, stated in a recent interview with Bloomberg that the growth of AI technology necessitates enormous quantities of computer power and data storage. If it weren’t for ASML’s technology, Wennink declared, “that’s not going to happen.”
The market for high-end edge devices and generative AI applications will drive ASML’s growth in sales of EUV equipment in 2024 and 2025. The stock of ASML, which ended at $898.54 on February 5, has a $1,000 price target and a “buy” recommendation from Argus.
9. International Business Machines Corp. (IBM)
IBM has been working for years on modifying its AI supercomputer Watson to transform the legal, financial, academic, and medical fields. Watson AI applications from IBM can be used to forecast results, streamline workflows, and enhance customer service. Watson Studio from IBM even assists business clients in developing in-house AI solutions. The AI Alliance, a global network of AI technology developers dedicated to open AI innovation, was established in December by IBM and Meta. “Enterprise-ready AI and data platform” Watsonx.ai, according to Kelleher, “stands in contrast to the closed systems offered by Alphabet and Microsoft.” The price objective for IBM shares, which closed at $183.42 on February 5, is $225, and Argus has a “buy” recommendation on it.
10. Arista Networks Inc. (ANET)
Cloud service providers, enterprise data centres, and internet enterprises can all benefit from Arista Networks’ cloud networking solutions. High-throughput data centre switches and high-performance cloud networking solutions from Arista are essential for supplying the processing power needed for demanding AI applications. Jayshree Ullal, the CEO of Arista, announced a new objective in November 2023: to generate $750 million in revenue annually from AI networking by 2025.
Arista is in a unique position to gain from the quickening expansion of cloud-based data centre networking in order to facilitate the development of generative AI and huge language models. The price target of $275 and a “buy” rating of Argus are assigned to ANET’s shares, which ended at $272.97 on February 5.
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Overview: Top AI company stocks
The top 10 AI firm stocks represent a constantly evolving field of artificial intelligence research and growth across a wide range of industries. These businesses, which are frequently well-known brands and industry leaders, are at the forefront of utilising AI technologies to boost productivity, improve efficiency, and transform consumer experiences.
Tech titans like Microsoft and Alphabet, the parent company of Google, as well as giants like NVIDIA, known for its state-of-the-art graphics processing units (GPUs) that power AI applications in gaming, data centres, and autonomous vehicles, regularly feature prominently in this elite group. These top 10 AI firm stocks provide investors with unmatched chances to engage in and profit from AI, in addition to reflecting the growing integration of AI into daily life.
Consider the Risk before investing
The top 10 AI companies stocks can provide substantial financial growth opportunities due to the swift development and incorporation of AI technologies across several industries. Before making a purchase, investors must, however, carefully weigh the dangers involved. These businesses may appear to be leaders in innovation, but their stock values are subject to swings due to a variety of reasons, including shifts in the market sentiment, changes in regulations, and advancements in technology.
Furthermore, the AI industry’s competitive environment is always changing, with new competitors and altered market dynamics presenting difficulties for long-standing firms. To minimise potential losses and take advantage of AI technology’s long-term growth prospects, investors need to evaluate their risk tolerance, diversify their portfolios, and do in-depth research.
