The world of artificial intelligence (AI) continues to expand, and with it comes the potential for significant rewards in the stock market.
But how can investors harness this growth and reap the benefits?
In this blog post, we’ll delve into the best AI stocks, including the most promising AI stocks & companies, explore industry-specific opportunities, and guide you through some AI ETFs to watch.
Let’s dive in.
Disclaimer: This article is NOT financial advice. Always do your own research and speak to a financial advisor before investing.
Quick Summary
For your convenience, here are the main talking points of this article:
- Investors should consider investing in Nvidia, Amazon, Alphabet, IBM, Microsoft, C3.ai, and Adobe for the top AI stocks of 2023 with potential growth opportunities.
- Industry-specific investments such as healthcare and genomics can yield significant returns due to the development of AI technology.
- ETFs such as ARKQ, BOTZ, and SKYY offer an easy diversified approach to gaining exposure in the AI sector while managing the risks associated with it.
Are you a financial advisor looking to improve your lead generation? Be sure to watch my Free Masterclass to learn how to generate high-converting leads.
What are the best AI stocks to invest in right now?
1. Nvidia (NVDA)
Nvidia, a powerhouse in the AI market, has cemented its position through its graphics processing unit (GPU) chips, which play a crucial role in machine learning training phases that require hefty computing power.
Its A100 chip holds a significant share of the AI market, making it a fundamental component of the industry. Apart from hardware, Nvidia also offers software development tools that allow developers to construct AI applications.
Nvidia’s stock has been on an upward trajectory in 2023, with shares increasing by 112.34% following a 50% decline in 2022.
The company’s suite of AI products, including GPUs, data center hardware, AI software models, and AI as a service, shows immense potential in the AI space. Additionally, its professional visualization segment, which encompasses its omniverse, presents numerous opportunities for AI applications.
2. Amazon (AMZN)
Amazon, a titan of e-commerce, has successfully integrated AI technology into its business operations, utilizing it to personalize online retail offerings and suggest products to website visitors and in physical stores.
With a strong consensus rating of “strong buy” for Amazon stock, its AI prowess is undeniable.
Amazon offers its machine learning tool, Amazon SageMaker, to accommodate customer data, engineering, and development needs. This cloud-based platform is designed to provide a quick and efficient development process. This tool further demonstrates the company’s commitment to the development and implementation of AI, solidifying its position as a top AI stock to consider.
3. Alphabet (GOOGL)
Alphabet is a holding company with a diverse range of subsidiaries and standalone companies, including Google Services, Google Cloud, and Other Bets.
The company is heavily investing in AI research and development, collaborating with other companies like London-based DeepMind and autonomous vehicle start-up Waymo.
Alphabet’s stock has seen an impressive 40% rebound in 2023 and has increased by more than 10% in the last year. Alphabet’s AI applications span from its chatbot, Bard, to its deep learning platform, DeepMind, which has been used to diagnose eye diseases, predict protein shapes, and accelerate scientific discovery.
The company utilizes Artificial Intelligence (AI) technology in the field of digital advertising. Additionally, it has crafted Google Assistant, an intelligent service similar to Alexa. Alphabet’s diverse AI portfolio makes it a promising AI stock for 2023.
4. IBM (IBM)
IBM’s strong presence in the AI sector makes it a recommended investment for 2023.
The company’s AI technology is being utilized in various industries such as healthcare, where it’s used to develop personalized care plans, accelerate the process of introducing new drugs to the market, and enhance the quality of care.
Additionally, IBM leverages AI in the financial services industry to assist clients with the complex task of financial regulatory compliance. IBM was the leader in AI software platforms in 2020, according to market research firm IDC. It had a 13.7% market share, up 46% from 2019.
IBM’s strategy with AI is to leverage the technology to enhance human intelligence, optimize efficiency, and reduce costs. With its strong market position and innovative approach, IBM presents a compelling AI investment opportunity.
5. Microsoft (MSFT)
Microsoft is one of the leading AI stocks to consider for 2023. They are working with Advanced Micro Devices (AMD) to develop AI chips.
The company leverages AI for automated clinical documentation in healthcare to minimize paperwork and administrative requirements and employs Azure to enable customers to construct custom AI tools.
CEO Satya Nadella views AI as the next major computing platform and believes Microsoft must take the lead in this transition to avoid being left behind, similar to the situation with mobile. Microsoft’s investment in OpenAI, a technology start-up, showcases its commitment to AI development.
With its focus on AI innovation and strong market presence, Microsoft is well-positioned for success in the AI sector.
6. C3.ai (AI)
C3.ai is a Software-as-a-Service (SaaS) cloud computing company that enables businesses to deploy extensive Artificial Intelligence (AI) applications.
The company’s business is constructed around AI, providing software as a service (SaaS) to enable companies to utilize artificial intelligence for their requirements.
C3.ai’s unique positioning as the first mover in its industry and its assertion that there is no end-to-end enterprise AI development platform in direct competition with it makes it an attractive AI stock for 2023.
The company has developed AI applications for clients such as the U.S. Air Force and European utility company Engie.
C3.ai has recently made waves with its new generative AI suite. The first product to be launched was enterprise search.
With its strong AI focus and innovative product offerings, C3.ai stands out as a promising AI stock.
7. Adobe (ADBE)
Adobe, known for its creative software products, has also entered the AI space with Adobe Sensei, its AI and machine learning technology.
The company’s AI capabilities enhance its software offerings, making it a noteworthy AI stock.
Adobe’s Creative Cloud offers extensive features, further solidifying the company’s position in the AI market.
Additionally, Adobe’s collaboration with Meta, a company developing an AI supercomputer called the AI Research Supercluster, demonstrates the company’s commitment to AI innovation.
With its strong AI technology and creative software suite, Adobe is a compelling AI stock for investors.
What are the best industry-specific AI investing opportunities?
While investing in individual AI stocks can be rewarding, focusing on industry-specific opportunities can also yield significant returns.
Some investment opportunities in AI can be found in healthcare and genomics companies, as well as big data and AI. Companies in these industries are leveraging AI technology to enhance their operations, leading to potential growth and innovation in their respective sectors.
Healthcare and Genomics
Investing in healthcare and genomics may yield substantial financial returns given the potential for innovation and progression in these rapidly expanding sectors.
AI can potentially be utilized for disease diagnosis, patient care, and the discovery of new drugs.
Companies that leverage AI in healthcare and genomics are well-positioned to capitalize on the growing demand for innovative medical solutions. As the healthcare industry continues to advance, the potential for growth and financial rewards in these sectors becomes increasingly attractive for investors.
Big Data and AI
Big data AI can offer technologies that provide value to businesses such as enhanced customer acquisition and retention, targeted promotions, recognition of potential risks, innovation and informed decision-making to optimize ROI and reduce risks.
AI can also streamline big data analytics by automating and optimizing complex analytical tasks.
However, risks associated with investing in big data and AI should be considered, such as data privacy and security concerns, and potential legal and regulatory issues.
Many AI Big Data companies are worth exploring when deciding what AI stocks to buy.
Are AI ETFs worth considering?
If you’re looking to gain exposure to the AI sector without having to select individual stocks, exchange-traded funds (ETFs) offer a convenient solution.
The top 4 AI ETFs to watch are ARKQ, BOTZ, and SKYY.
These ETFs provide a straightforward way to invest in AI by tracking a diversified basket of AI-related stocks, allowing you to benefit from the long-term growth and innovation of the AI sector.
Know the Risks and Rewards of AI Investing
While the potential rewards of investing in individual artificial intelligence stocks are alluring, it’s important to remember that investing also carries risks.
To lower these risks, it’s crucial to implement risk management strategies and maintain a diversified portfolio. This approach helps ensure that you’re not overly exposed to any single AI stock or sector, reducing the potential impact of adverse market events on your portfolio.
Conclusion
In this blog post, we’ve explored the top AI stocks right now, industry-specific opportunities, and the best ETFs to watch.
While AI investing carries risks, the potential rewards are too significant to ignore. By carefully evaluating AI stocks, focusing on industry-specific opportunities, and maintaining a diversified portfolio, investing in AI stocks could be a fruitful venture considering the direction this technology is going.
If you are a financial advisor looking to find clients that you can share insights with, be sure to watch my Free Masterclass where you will learn how to get seen by your dream type of clients.
FAQs
Ashley Davis (or ‘Ash’ for short) is the CEO & Founder of Skyline Social. For over 15 years, Ash has been helping business owners with lead generation. Ash specializes in helping businesses get high-quality leads, appointments and clients each month with automated digital marketing strategies. Learn more about the author here.
