In this article, we will be looking at the top 10 AI stocks. If you want to see more of the best AI actions, go straight to 5 Most Advanced AI Companies.
AI, which stands for artificial intelligence, is already helping companies make better decisions. For retailers, AI helps price items so businesses sell more items. For internet businesses, artificial intelligence helps companies sell more ads more efficiently. For banks, technology helps financial institutions make better loans.
In the future, AI will likely make possible many new technologies that could benefit society. For the automotive industry, AI could enable autonomous driving that could reduce costs. For the education industry, this could offer even better personalized learning that could make education more effective. For the pharmaceutical industry, AI could help create new drugs that improve the lives of billions of people.
Given how transformative AI could be, PwC estimates that global GDP will be 14% higher by the end of the decade thanks to AI, as the technology increases productivity gains.
For the decades beyond 2030, the contribution of AI is likely to be even greater. In the future, progress in AI could accelerate if quantum computing ever becomes feasible. With quantum computing, computers can perform certain tasks much faster than any traditional computer, and faster computing could help AI be even more productive.
Given the vast potential of AI, many of the world’s leading tech companies are working to improve the technology.
Some companies like International Business Machines Corporation (NYSE:IBM) are working on building quantum computers while others like NVIDIA Corporation (NASDAQ:NVDA) are working on building more efficient semiconductors that power learning algorithms automatique. Yet others like Tesla, Inc. (NASDAQ:TSLA) are working to build self-driving vehicles.
2022 has been a tough year for markets, as the Federal Reserve has raised interest rates six times this year alone. As a result, demand from many businesses has declined and the wider market has declined.
Year-to-date, the S&P 500 is down 16.6% and the Nasdaq is down 29% year-to-date. If the economic data fails to meet expectations, there could be more downside.
Given the uncertainty, it might make sense for long-term investors to own a well-diversified portfolio of stocks across many different sectors.
For our list of the 10 most advanced AI companies, we selected 10 leading technology companies that have done research on AI.
Since one company is more advanced than another is subjective, we decided to use market capitalization as a way to rank the best AI stocks, as a company with a larger market capitalization can generally mean that it has more potential resources to do AI research.
We have also included the number of hedge funds in our database that held shares of the same stock at the end of the third quarter.
For those of you interested, also check out 15 Largest Global Tech Companies by Market Cap.
10 Most Advanced AI Companies
10. International Business Machines Corporation (NYSE:IBM)
Market capitalization as of 05/12: 133.28 billion dollars
Number of hedge fund holders: 40
International Business Machines Corporation (NYSE:IBM) is a technology giant famous for “IBM Watson”, an AI that beat Jeopardy champions Ken Jennings and Brad Rutter in 2011. International Business Machines Corporation (NYSE:IBM) is also known for working on quantum computers that could one day help make AI even more productive. According to the company, “Emerging technology is expected to solve valuable problems that today’s most powerful conventional supercomputers cannot and never will.” Of the 920 hedge funds in our database at the end of the third quarter, 40 were long stocks of International Business Machines Corporation (NYSE: IBM).
Alongside Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT) and Apple Inc. (NASDAQ:AAPL), International Business Machines Corporation (NYSE:IBM) is a leading technology company that performs many AI searches that many hedge funds in our database held at the end of Q3 2022.
9. Salesforce, Inc. (NYSE: CRM)
Market capitalization as of 05/12: 133.93 billion dollars
Number of hedge fund holders: 117
In terms of artificial intelligence, Salesforce, Inc. (NYSE: CRM) is an enterprise cloud computing company that provides customers with AI that helps them better predict business outcomes, augment business processes, and better manage customer service. Thanks in part to its artificial intelligence software, Salesforce, Inc.’s (NYSE: CRM) sales and profits have grown significantly over the years.
Looking ahead, it’s likely that Salesforce, Inc. (NYSE: CRM) will continue to improve its AI offerings given that the company has spent $4.47 billion in total research and development spending over the past fiscal 2022, compared to $3.6 billion in fiscal 2021. 117 hedge funds in our database held shares of Salesforce, Inc. (NYSE: CRM) at the end of the third quarter. The company ranks 9th on our list of the best AI stocks given its market capitalization of $133.93 billion as of 5/12.
8. Oracle Corporation (NYSE: ORCL)
Market capitalization as of 05/12: 214.16 billion dollars
Number of hedge fund holders: 67
Oracle Corporation (NYSE:ORCL) is an enterprise software company that offers customers “a collection of services with pre-built machine learning models that make it easier for developers to apply AI to applications and operations Models can be custom trained for more accurate trading results.” Oracle Corporation (NYSE: ORCL) is also using AI to make its existing enterprise software even more useful. Considering its market capitalization of $214.16 billion, Oracle Corporation (NYSE:ORCL) ranks 8th on our list of top AI stocks.
7. Meta Platforms, Inc. (NASDAQ: META)
Market capitalization as of 05/12: 324.63 billion dollars
Number of hedge fund holders: 177
Meta Platforms, Inc. (NASDAQ:META) has invested heavily in artificial intelligence as the company competes with TikTok in short videos. Meta Platforms, Inc. (NASDAQ:META) has also used AI to deliver more useful ads to its users and to create AI chatbots that could one day be useful to businesses. In the third quarter of 2022, Meta Platforms, Inc. (NASDAQ:META) spent $9.17 billion on research and development, compared to $6.32 billion in the same quarter of 2021. 177 hedge funds held shares of Meta Platforms , Inc. (NASDAQ: META) at the end of Q3.
6. NVIDIA Corporation (NASDAQ: NVDA)
Market capitalization as of 05/12: 408.61 billion dollars
Number of hedge fund holders: 89
NVIDIA Corporation (NASDAQ:NVDA) is a leading semiconductor company that could benefit from the growth of AI in the future as its GPUs can accelerate computational processes for machine learning. Baron Funds outlined the AI potential of NVIDIA Corporation (NASDAQ:NVDA) in a third quarter 2022 letter to investors,
NVIDIA Corporation (NASDAQ:NVDA) is a fabless semiconductor company and a leader in gaming and accelerated computing. NVIDIA is driving the growth of AI from the data center to the edge. Stocks hurt on good stock sizing in NVIDIA’s gaming segment, coupled with the broader sell-off in the growth stock market. Given NVIDIA’s end-to-end AI platform and its primary market share in gaming, data center, and standalone machines, as well as the size of those markets, we believe the company can maintain its growth trajectory. See more details on NVIDIA in the top net buys section below. During the third quarter, we took advantage of the sale of its shares to add NVIDIA Corporation, a fabless semiconductor mega-cap that is a global leader in gaming cards and accelerated computer hardware and software. The selloff was driven by a short-term inventory correction in gaming due to a COVID-related surge in demand as well as the Ethereum cryptocurrency’s move from proof-of-work to proof-of-stake. Additionally, investors are concerned about the potential slowdown in data center revenues due to a weaker macroeconomic environment as well as recently announced limitations on semiconductor shipments to China. Despite the near-term uncertainty, we believe NVIDIA’s end-to-end AI platform and its leading market share in gaming, data center, and standalone machines, as well as the size of those markets , would enable the company to benefit from sustainable growth. for years to come and therefore view the stock price where we have added stocks as an attractive value for long-term investors. With the demand for computing power doubling every one to two years and Moore’s Law slowing down, computing needs are greater than ever. At the same time, the growth of “quasi-free” supply (which was possible thanks to Moore’s law) has slowed considerably. NVIDIA’s accelerated architecture, with large-scale parallel computing, meets this need.
As of December 5, NVIDIA Corporation (NASDAQ:NVDA) had a market capitalization of $408.61 billion, ranking 5th on our list of top AI stocks.
As NVIDIA Corporation (NASDAQ:NVDA), Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL) are leading tech companies researching AI in our database. were long at the end of the third trimester.
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Disclosure: none. 10 Most Advanced AI Companies is originally published on Insider Monkey.