The era of artificial intelligence (AI) is about to happen if we are not already there. Investors should know that this trend is getting more and more attention as time progresses, and they should start considering stocks delving in the said technology. Here are some AI stocks to keep an eye on this year.
Tech companies know how to spot a trend, and they don’t want to be left behind. Currently, big names such as Amazon, Nvidia and Alphabet have revealed their plans and efforts to pursue artificial intelligence and incorporate it in their products.
The Motley Fool reports that Alphabet is now working on self-driving cars and AI services for cloud computing and storage, as well as incorporating it into their main services. Google is offering TensorFlow, which is a machine learning software that can help developers produce apps capable of machine learning. Aside from machine learning, Alphabet is also busy tinkering with autonomous cars via Waymo. Google plans to launch autonomous ride-hailing vehicles in the future.
Like Google, Nvidia is also focusing on driverless cars. What sets the tech company apart from its contemporaries is that the company is selling both chips and autonomous car technology to the market. Alphabet, Amazon and Microsoft are some of its clients for graphics processing units. Meanwhile, it is currently working on its self-driving car project named Drive PX Pegasus, which is now on its third version.
Amazon, the king of e-commerce, will not let the opportunity brought by AI just pass by. Last year, CEO Jeff Bezos revealed that AI is the major reason why Amazon has been successful in the e-commerce industry. “Machine learning drives our algorithms for demand forecasting, product search ranking, product and deals recommendations, merchandising placements, fraud detection, translations, and much more,” he added. Amazon is also using AI into its cloud computing service Amazon Web Services.
In 2013, Facebook officially launched FAIR (Facebook AI Research). In the next year, it was IBM’s turn to introduce the AI-powered Watson Analytics to its existing client base. Outside the U.S., companies such as Baidu and Tencent—both located in China—are also stepping up their game.
If you want to invest in lesser known companies that are also low key making waves in the AI game, there is Xilinx, Ciena and CEVA.
When it comes to artificial intelligence, one must also bring up the Internet of Things (IoT). Although there is real concern that it would replace thousands of manual jobs in the future, one cannot deny that work automation and AI bring efficiency at its finest.
Reasons to invest in AI stocks
So what are the reasons why it’s high time that investors should take a closer look at AI stocks?
1. AI will take over sooner than later. According to Morningstar, those that make up the fiber of manufacturing and engineering processes are beginning to rely more on artificial intelligence. Software, hardware, big data, memory and semiconductors are all linked to AI.
2. The era of AI is here, but it has not fully reached its potential yet. This makes investing in AI stocks more logical before prices start to skyrocket in the near future.
3. There is a global movement for this, not just companies in the U.S. or popular companies such as Amazon, Google or Nvidia. Lesser known companies are leveling up their game in hopes of getting a bigger share of the AI industry in the years to come.
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