AI stocks will surge in 2023. So, naturally, many investors want to understand the different uses of this technology across a wide range of sectors. Artificial intelligence involves training computerized systems using vast amounts of data through a process called machine learning. These systems can reason about future outcomes, similar to the natural intelligence humans exhibit.
Companies are leveraging AI to develop new technologies that promise to reshape our world. Some AI applications fail, while others are game-changing. Investing in this area is therefore an interesting proposition. It’s important for investors to distinguish between rice husks and wheat, and I think these three top options should definitely fall into the top quality bucket for anyone considering AI stocks right now. .
| MSFTMore | microsoft | $310.00 |
| NVDA | Nvidia | $285.70 |
| AI | C3.ai | $19.64 |
Microsoft (MSFT)
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microsoft (Nasdaq: MSFTMore) is worth investing in for a variety of reasons. However, many investors are now eyeing the company solely based on its relevance to its groundbreaking AI technology. Microsoft was involved with his OpenAI in 2019 and started investing in this AI startup, then released Chat GPT and DALL-E 2.
Then Microsoft invested an additional $10 billion in OpenAI a few months ago. The move puts Microsft in the lead among tech giants as the first Silicon Valley company to claim its rights in generative AI.
Microsoft has integrated ChatGPT into the Bing search engine. ChatGPT is expected to boost the company’s competitiveness in search and regain some of Google’s market share.
This ChatGPT investment also gives Microsoft a first-mover advantage in integrating AI and cloud technologies. The company is looking to leverage AI in its Azure cloud division to develop profitable applications. In addition, it will give Microsft additional strength in its core software business. It greatly increases the efficiency of the company’s office products, automates certain routine tasks, and enhances the user experience with the product.
It remains to be seen how dystopian this will be. But in my opinion, MSFT stock is a long-term stock.
NVIDIA (NVDA)
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Nvidia (Nasdaq:NVDA) is another company that has received a lot of attention with the advent of AI. The company’s business addresses a wide range of AI applications, from comprehensive enterprise applications to more niche uses.
Among these applications, Nvidia holds the most promise at the intersection of AI and graphics, taking a leading position in the market in terms of high-performance graphics processing units (GPUs). Research related to AI applications generated via his GPUs at Nvidia is rolling in right now, with about 20 papers scheduled for a major conference in August.
NVDA’s stock price has skyrocketed as a direct result of growing interest in AI over the past few months. Some have criticized the preparation, citing the idea that AI graphics are overrated. perhaps. But given how huge the gaming industry has become, it’s hard to argue that there’s a huge opportunity in store for Nvidia.
Combine the growth in gaming with Nvidia’s growth in data, voice, analytics, cybersecurity and other applications, and Nvidia’s exposure to AI could be just the tip of the iceberg of what investors should be interested in right now. I think there is a very strong argument that there is. .
C3.ai (AI)
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C3.ai’s (New York Stock Exchange:AI) innovative technology is the application of AI within the SaaS business model and deployed across the enterprise realm. This pure company offers its customers a variety of software applications and deployments. So it’s no surprise that C3.ai has skyrocketed in popularity in the recent boom around artificial intelligence.
In many ways, C3.ai is considered one of the most direct ways to start the AI boom. This positioning has resulted in an influx of investor money into the stock.
Of course, when things are good in the AI world, it’s great for C3.ai too. But, as we’ve seen, recessions can be a nightmare for investors. Therefore, a volatility-based risk assessment is all that is required. Investors should do business with such companies.
Interestingly, C3.ai is one of the smaller and more agile options in the AI world (especially when compared to Microsoft and Nvidia). So if AI turns out to be what everyone expects, investors may get more out of such a name.
Of course, I think a well-diversified portfolio should include all three options. However, C3.ai may be the best option for investors who are more risk tolerant and seek higher profit potential over the long term.
As of the date of publication, Alex Sirois did not hold any positions (directly or indirectly) in the securities referenced in this article. The opinions expressed in this article are those of the writer and are subject to InvestorPlace.com. Publication guidelines.
