Leading Artificial Intelligence Companies To Invest In
June 12 2019 - Artificial Intelligence Stocks To Buy And Watch Amid Rising AI Competition By Investors Business Daily
Artificial intelligence stocks are rarer than you might think. Many companies tout artificial intelligence initiatives. But there really are few — if any — public, pure-play artificial intelligence stocks.
Instead, look for companies using AI technology to improve products or gain a strategic edge.
Cybersecurity firm Crowdstrike (CRWD) is one example. Crowdstrike launched its initial public offering on June 12. The company uses machine learning, one form of artificial intelligence, to detect malware on laptops, mobile phones and other devices that access corporate networks.
It's no secret that Alphabet (GOOGL), Microsoft (MSFT) and Amazon.com (AMZN) are all spending big bucks on AI technology. The tech giants are putting AI in consumer products and services, such as voice-activated smart home devices. Netflix (NFLX) utilizes AI to personalize its internet TV content for subscribers.
Amazon, Google and Microsoft also are pushing AI technology into cloud computing. They sell AI analytical services to business customers on a pay-as-you-go basis. Oppenheimer estimated in an April report that their AI-related cloud revenue will boom to $46.2 billion by 2025, up from $1.98 billion in 2018.
Meanwhile, worldwide spending on AI systems will jump 44% to $35.8 billion in 2019, says IDC. Nearly $13.5 billion will be spent on AI software platforms and AI apps.
Artificial Intelligence Stocks Span Industries
AI competition is fierce in many industries. They include financial services and cybersecurity.
Another example is enterprise software, where Salesforce.com (CRM), Adobe Systems (ADBE) and others compete. The IBD 50 roster of growth stocks has featured artificial intelligence stocks in online dating, digital advertising, and business communications.
AI technology uses computer algorithms. The software programs aim to mimic the human ability to learn, interpret patterns, and make predictions. "Machine learning" is the most widely-used form of AI deployed in industries. Machine learning systems use huge troves of data to train algorithms to recognize patterns and make predictions.
Improved Forecasts, Better Dates
Here are some companies forging ahead in AI technology.
Salesforce.com and Adobe. Salesforce's Einstein tools improve sales forecasts. The AI software uses a company's historical lead and account data to predict which deals are more likely to close. Salesforce in May showcased new Einstein analytical tools for the financial services market. In e-commerce, Adobe's AI tools personalize website content to spotlight products or services that online shoppers are most likely to buy.
Match Group (MTCH). Controlled by IAC (IAC), Match is using artificial intelligence to improve its Tinder mobile dating app. Tinder's new "Super Likable" feature uses machine learning.
Trade Desk (TTD). The digital advertising firm provides automated tools to help customers buy online ads and optimize return on spending. Trade Desk's AI tools identify the best websites to buy ads on.
Cybersecurity Firms Among Artificial Intelligence Stocks
Five9 (FIVN). A provider of cloud-based contact center software, Five9 is developing machine learning algorithms that helps companies automate customer support. Five9 is partnering with Google on AI contact center software.
Visa (V) and Mastercard (MA). The credit card networks use AI tools to detect financial crimes such as fraud and money laundering. Big banks use AI in chat bots that provide online customer services.
Palo Alto Networks (PANW) and Fortinet (FTNT). With artificial intelligence, the cybersecurity firms aim to spot and block malicious activity on computer networks better than existing technologies can.
Nvidia (NVDA), meanwhile, has been removed from the IBD 50 after a long run. Its AI chips are used in cloud computing data centers. Nvidia also has many ongoing automotive AI projects. Intel (INTC) and many startups are designing AI chips for data center customers.
Others to keep an eye on include IBM (IBM), Accenture (ACN), Epam Systems (EPAM) and other IT services companies.
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