There have been plenty of films made on the subject of Artificial Intelligence, but it’s no longer a sci-fi concept confined to the future. AI is already here, and there several businesses that are producing the technology.
Neural networks and machine learning are already being utilised on a daily basis, and in some cases, they form an integral part of a company’s function. If you want to invest in AI and the potential it holds for the future; these are the stocks to watch.
How to Invest in AI Companies
Before we take a look at the movers and shakers in the world of AI, we’re first going to examine the different options for investment.
The obvious option is purchasing stocks in the companies that you expect to perform well. This is the traditional route for investment and can deliver significant returns if the stock price increases. However, there can be tax implications because you will be a shareholder in the company.
An alternative is a Contract for Difference, widely known as a CFD. Anyone trading in CFDs will be able to enjoy all the benefits of the growth in price without any of the hindrances. This is because CFDs are a way to speculate on the price without ever actually owning the stock.
The other benefit of CFDs is that you can also go short and long, providing flexibility in volatile market conditions.
The Leading AI Stocks
AI is increasingly becoming a critical part of many businesses. If this seems hard to believe, just consider how integral Alexa and smart technology is to many homes already. These systems use AI techniques to deliver intelligent results, even though they’re not considered to be “true” AI.
These stocks are leading the way with AI and expected to deliver significant returns in the long term:
Nvidia Corp (NVDA)
The name may sound more like something you’d hear in Terminator, but Nvidia Corp is vital to the field of Artificial Intelligence. They are one of the companies behind the scenes, creating AI graphic chips and processing units to power self-drive cars. With roles also in cloud computing and high-performance gaming, Nvidia is a company that’s focused on deep learning and likely to continue to feature strongly in the future.
Amazon are better known for being an online retailer, but the CEO, Jeff Bezos, has always been enthusiastic about technology and keen to develop machine learning. Today, Amazon is one of the leaders in the world of Artificial Intelligence, using AI techniques in its Alexa system and rolling out Amazon Go, the grocery stores with no staff. Their whole e-commerce and logistics operation is built on AI, and they are likely to continue to be at the front of the field in emerging technology.
In 2018 Twilio was worth just under $4 billion but was hotly tipped for success. In just three years, the company’s value has rocketed, and it is now worth $59 billion – and it is still climbing. Specialising in cloud software, Twilio produces interfaces that enable developers to integrate video, messaging and voice features in their apps. Rooted firmly in AI, TWLO is forecast to grow a further 20% in the next five years, but it’s a volatile stock and not for the faint of heart.