3 Great Artificial Intelligence Stocks To Hold for the Next Decade
Artificial intelligence, or AI, is one of the largest trends today. Spending on Artificial Intelligence networks will increase by more than 2.5x between 2019 and 2023, from $37.5 billion to $97.9 billion, for a compound annual growth rate (CAGR) of 28.4%, according to estimates by research firm IDC.
There are two ways to generally get exposure to the AI space:
- Buy stock in companies that make the equipment necessary for Artificial Intelligence
- Buy stock in companies that apply artificial intelligence to entire industries to improve efficiency and output.
Here are a few companies that look to be leading the path forward in these two areas.
1). NVIDIA
NVIDIA Corporation [NASDAQ: NVDA] designs and manufactures computer graphics processors for the gaming and professional markets, as well as system on a chip units for the mobile and automotive markets.
The company revolutionized the PC gaming industry by inventing the graphics processing unit (GPU) in which it operates two segments, GPU and Tegra Processor.
Its primary GPU product line is labeled “GeForce”, which includes GeForce for PC gaming and mainstream PCs; GeForce NOW for cloud-based game-streaming service; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users.
The company has recently moved into the mobile computing market, with its Tegra mobile processors. In addition to GPU manufacturing, Nvidia provides parallel processing capabilities to researchers and scientists which make supercomputing inexpensive and widely accessible.
2). Alphabet
Alphabet’s Google [NASDAQ: GOOG] has earned billions, and continues to do, as more and more ads move online. Its glittering portfolio consists of products and platforms such as Android, Chrome, YouTube, Google Maps, and Gmail, each boasting of more than one billion users. This gives it enormous web clout and enormous amount of data, which the advertisers find so alluring.
Google has been on the frontline when it comes to investment in AI, which should not come as a surprise given the company’s plans to evolve into the “AI-first world”.
Leading the way is search engine Google, which has been nothing short of the proverbial ‘golden egg laying hen’ for Alphabet’s AI services.
Google’s AI division has been working on accurately predicting the weather and revolutionizing mobility with self-driving car project called Waymo. Alphabet’s health technology-focused subsidiary Verily seeks to combine technology with data science and AI to revolutionize healthcare.
Google’s PAIR initiative, which stands for People + AI Research, aims to make the partnership more fruitful and enjoyable for all the parties involved.
What goes in Google’s favor is that it has the resources to invest billions in new growth avenues. The company calls it in moonshot opportunities or bets vital to its future success.
3). Tencent
Tencent is the world’s largest gaming company and one of the world’s largest social media companies.
It has a presence in a wide array of sectors and industries, including internet services, e-commerce, mobile games, social network, music, web portals, payment systems, smartphones, and multiplayer online games.
Tencent’s WeChat “super-app” and social messaging platform today boasts of 1.15 billion users. It is one of the largest video streaming services in China and is also credited with pioneering mobile payments with TenPay.
With hundreds of millions of WeChat users Tencent has access to tons of data. Given its market cap of almost US$450 billion, the company has the wherewithal to loosen its purse strings.
The Chinese technology giant was recently involved in the funding of Prowler.io, an artificial intelligence company based in Cambridge, England. In 2018, it led the funding round for Robotics start-up UBTech, raising $820m in the process.
Tencent is increasingly leveraging the power of AI to make its ads more effective, and to build chat bots. Tencent is now primarily focused on AI’s healthcare applications, which should not be surprising given that close to over 40,000 medical institutions have a WeChat account and around 60% of them accept appointment bookings online.
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