Top Artificial Intelligence Companies to Invest In
August 14 2019 - Artificial Intelligence Stocks Lurk Beyond Tech Giants Says Bank Of America By Investors Business Daily
Investors looking for artificial intelligence stocks to buy should look beyond tech giants like Alphabet's (GOOGL) Google or Amazon.com (AMZN), says a Bank of America report. Instead, they should mull software companies such as HubSpot (HUBS) or Zendesk (ZEN) using AI tools to improve products, the report says.
Aside from HubSpot stock or Zendesk, Bank of America views cybersecurity firm CrowdStrike (CRWD), Discover Financial Services (DFS), Guardant Health (GH), and medical research firm Icon (ICLR) as companies that use artificial intelligence to gain a competitive edge.
Also on the list: Urban Outfitters (URBN), Helmerich and Payne (HP), XPO Logistics (XPO), and Wayfair (W).
HubSpot stock ranks No. 44 in the IBD 50 roster of growth companies. CrowdStrike stock took off after its initial public offering in June and has consolidated. Guardant Health is among companies that SoftBank's Vision Fund has invested in.
Trade Desk (TTD), Match Group (MTCH) and other companies also are among artificial intelligence stocks to watch.
Artificial Intelligence Stocks Span Many Markets
"While the big four cloud computing platform companies (Amazon, Alphabet, Microsoft (MSFT), IBM (IBM)) have been leaders in building out AI services," investors should broaden their search for AI companies, the report says.
Cambridge, Mass.-based HubSpot sells sales-and-marketing software to small and midsize businesses. It focuses on digital channels such as blogs, internet search engines and social media.
"HubSpot's AI-based technologies tool In-bound helps businesses attract customers with relevant and helpful content," the report said.
According to Bank of America, the AI market could quadruple in size to $127 billion by 2025 from $36 billion in 2020 as usage expands in retail, cybersecurity and other areas.
Discover Financial One Artificial Intelligence Stock
Discover Financial stock ranks No. 39 in the IBD 50.
"Mid-cap Discover is leveraging AI/Big Data across marketing, underwriting and collections operations to drive efficient customer acquisition, better credit performance, and above-industry-average loan growth," the report said.
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