Artificial Intelligence(AI) is growing at a very high pace nowadays, with lot of new companies integrating AI with their operations either to streamline their supply chains or doing analytics on datasets which companies already have. As per International Data Corporation firm global spending on AI including hardware, software, services generated is expected to generate $150 billion in 2020. By 2024, this value is expected to exceed $300 billion.
As use of AI is increasing day to day in the industry it’s highly expected that companies labeled as “AI Company” would see large increase in their values over next few years. Companies like Google parent Alphabet (NASDAQ:GOOGL)(NASDAQ:GOOG), and salesforce.com (NYSE:CRM) are worth buying nowadays considering the future involvement of AI in day to day activities of people.
The following is the list of companies using AI in their operations and would be worth buying: –
- Nvidia Corporation (NVDA)
Nvidia although is not a typical AI company in terms of software development rather it makes hardware necessary for running AI algorithms/models. Central to Nvidia’s core product is it’s Graphics Processing Unit (GPU) which powers autonomous vehicles, high-performance gaming, cloud computing and many other areas requiring deep learning. NVDA is marketing itself to automakers as the go-to solution for unified architecture across software, AV chips, data centres and more. NVDA’s first-mover advantage in high-performance GPUs has eroded with competition, but it remains a market leader in that high-end market and is one of the best AI stocks to buy in 2020.
- Alphabet (GOOG)
Google parent Alphabet has a practically existential interest in investing heavily in artificial intelligence. Google uses AI and deep learning to automate crucial parts of it’s search engines, ultimately providing relevant search results, speech recognition, self-driving technology, ad pricing, personal assistance software and many more.
Alphabet roughly have $1 trillion dollar valuation which typically depends on maintaining and improving services. Google have lot of resources which would definitely makes it best artificial intelligence stock to buy considering that it would be increase highly in value over the years.In late 2019, Google announced it had achieved “quantum supremacy” with its Sycamore processor, solving a computation in 200 seconds that would take the world’s fastest supercomputer 10,000 years. Until proven otherwise, this may make GOOG the single most exciting AI company in the world.
- Salesforce (CRM)
Salesforce, the customer relationship management software giant, regularly acquires hot tech startups to improve its software-as-a-service (SaaS) offerings. In 2019, it acquired Bonobo AI, a firm using automated analysis of customer phone calls, texts and chats to deliver actionable insights. This fits perfectly with Salesforce Einstein, the company’s AI-powered software that uses data to identify previously unseen business patterns, deliver the hottest sales leads, predict what marketing copy will perform best and generally optimise how businesses operate and convert. It’s no coincidence that Salesforce and a handful of the other best AI companies in the world are also now large-cap growth stocks, routinely growing their own sales by more than 20% each year. Analysts expect profits to advance 18% annually for the next five years.
- Amazon (AMZN)
The second company to ever reach a $1 trillion valuation, Amazon couldn’t have hit that mark if it weren’t all-in on artificial intelligence. Like Google, returning relevant search results is central to Amazon’s business, and AI also powers key capabilities like forecasting product demand, optimizing logistics and warehousing and improving the voice-powered Amazon Alexa virtual assistant. Amazon Web Services, the company’s cash cow, is also the leading cloud provider of machine learning services, making Amazon’s expertise here even more vital (and lucrative). With hundreds of jobs in AI and machine learning posted globally, the “e-tailer” is investing heavily to stay at the forefront of the fast-growing field; CEO Jeff Bezos has pointedly mentioned the long-term capital investments Amazon will make in the area in recent letters to shareholders.
- Microsoft Coporation (MSFT)
The most valuable tech companies in the world, without exception, all invest in artificial intelligence. Microsoft’s cloud computing service, Azure, is home to AI-driven tools for medicine, language, robotics, medical imaging and many other areas. A 2019 $1 billion investment in Elon Musk-founded OpenAI aims to produce the Holy Grail of AI, artificial general intelligence (AGI) – the technology that can do anything human intelligence can. If successful, Microsoft becomes OpenAI’s preferred partner for commercialization. If AGI is feasible, it’ll likely take decades, but the profit potential is virtually unthinkable. Anyone who wants a slice should own the top AI companies today – and that means owning MSFT stock, the most notable Big Tech company not currently being targeted by U.S. regulators.
- IBM (IBM)
Ever since IBM’s Deep Blue defeated the world’s top chess player, Garry Kasparov, in 1997, IBM has been publicly foreshadowing its interest in being at the forefront of artificial intelligence. Its next pop culture success in the field came in 2011 when IBM’s Watson won a game of “Jeopardy!” against some of the trivia gameshow’s top contestants. But IBM’s Watson technology and AI capabilities aren’t just for parlor tricks – they’re increasingly important to the underlying business. IBM now makes a conversational AI assistant for businesses, AI-powered tools to prevent financial fraud and manage customer life cycles, and even software that can deliver health care insights to help save lives.
- Facebook (FB)
Facebook is deeply committed to machine intelligence. Since January 2018, the company has had Jerome Pesenti, a legend in the field who famously led IBM’s Watson division, running point on its AI Research team. Automating self-teaching algorithms to improve Facebook’s News Feed algorithm is central to FB’s success, and using AI to screen for hate speech and fake news has never been more important to the company (or society). With 2.6 billion monthly active users (MAUs) for the first quarter of 2020 and 3 billion MAUs across Facebook, Instagram, WhatsApp and Messenger, FB has a singular opportunity to test machine learning techniques with massive real-time datasets, giving FB a huge theoretical advantage over peers. After its AI team spent months studying them, the social media network announced it is banning misleading deepfake videos on its platform ahead of 2020 elections.