With so much death and economic destruction from the novel coronavirus, it’s hard to find the silver lining. However, if there is one on Wall Street, the stock of artificial intelligence increases. Yes, there is the profitability angle of machine learning and other relevant technologies. However, this crisis has been a crash course for the profitability of the sector.
Hopefully we will not suffer a second wave like many European countries are experiencing, because people can just get over themselves and wear a folding mask in public. But even if we succumb to a second round, it will eventually pass. However, returning to some sense of normalcy will likely take time. We can therefore rely on contactless platforms. Of course, this international emergency has provided an excellent arena for fine-tuning.
It is also becoming clear that the scale and acceleration of our globalized economy is more than the human brain can handle. Yes, we are the ultimate innovative kind (as far as I know). However, machines can now play an important role in alleviating most, if not some day, of all of our basic tasks. That frees us for bigger, more meaningful innovations that are the ethos of stocks with artificial intelligence. InvestorPlace – Stock market news, stock advice and trading tips
This isn’t just techno-babble gibberish. For example, the food supply chain was under tremendous strain during the height of Covid-19. Long before the pandemic, many retailers teamed up with AI programmers to develop improved forecasting and planning infrastructure. Now, because of the baptism of fire, that need has accelerated. Hence, these various stocks of artificial intelligence could see an upward trend this year and beyond.
Apple (NASDAQ: AAPL)
Alphabet (NASDAQ: toget, NASDAQ: togetL)
IBM (NYSE: IBM)
Nvidia (NASDAQ: NVDA)
Tencent (OTCMKTS: TCEHY)
Playgroup (NASDAQ: MTCH)
Trade Desk (NASDAQ: TTD)
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After all, not everything about AI has to be that serious. As we increasingly conduct our business and personal affairs online, almost everything we can imagine, including love and dating, can benefit from human-machine integration. With that dynamic already well advanced, here are the seven artificial intelligence stocks that you can benefit from.
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As the maker of the now legendary iPhone, Apple is known more as a consumer electronics giant than an investment in stocks with artificial intelligence. Of course, the company can simply rely on the power of its globally recognized brand. What is special about AAPL stock, however, is that management refuses to be satisfied with its past performance.
As evidence, consider Apple’s push into electric vehicles. At one point, rumors were circulating that hundreds of people were developing a car that could potentially compete with Tesla (NASDAQ: TSLA). These days, the consumer tech company seems to be focused on developing software for self-driving cars. In this case, such a course would require significant innovation in AI, especially machine learning.
In theory, Apple has had a lot of practice in this area thanks to its wealth of consumer data. The company has also developed consumer-friendly applications such as Palm Rejection technology. This ingenious development enables the iPad to tell the difference between intentional input with the Apple Pencil and accidental contact with part of the hand.
No doubt most investors will buy AAPL stocks for their popular smart devices. However, anyone interested in artificial intelligence stocks should also seriously consider this.
Alphabet (toget, togetL)
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When anyone talks about artificial intelligence stocks, Alphabet is one of the top names mentioned and for good reason. Essentially, Google from Alphabet owns the internet. As of July 2020, Google dominated desktop search engines with a global market share of 87%. With numbers like this, you definitely have a wealth of consumer data that other companies can only dream of.
And with the dominance of search come the revenue channels driven by web advertising. Businesses spend billions buying Google ads because that’s where the people are. In turn, Alphabet has gotten pretty adept at using its AI infrastructure to optimize exactly what consumers want, and just as importantly, when they want it. Thanks to its YouTube platform, Alphabet has many years of valuable experience in understanding and predicting consumer behavior.
While the togetL share is often the target of social and political criticism, I see the internet giant only on the upswing in the long term.
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What really sets Alphabet apart is its penchant for relevant acquisitions. For example, the subsidiary DeepMind specializes in traffic prediction algorithms. This is not only important for daily comfort, but also as a framework for smart city infrastructures. So if you want more AI in your portfolio, get some togetL stocks.
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Although artificial intelligence stocks are one of the hottest segments on Wall Street, individual names are usually well-known units. As such, they are not exactly what you would call undervalued as they have usually already generated a lot of investor sentiment.
IBM doesn’t have this problem. As an old tech giant, Big Blue has struggled over the years to lose its image from innovations of yesteryear. Instead, management has focused on many relevant markets, including cloud computing and cybersecurity. IBM stock is frustrating, however, even this year as it has fallen 10% while other technology companies are up sharply.
However, if you want to go against the grain with your artificial intelligence stocks, IBM offers the patient investor potentially significant benefits. As you know, Big Blue’s Watson AI platform has helped several companies and industries maximize their efficiency. One particular area that interests me is healthcare.
With the novel coronavirus disrupting this sector, there has never been a more critical time for improved efficiency. Here, IBM could have a noticeably positive impact and reduce administrative friction, so clinicians can spend less time on paperwork and more time supporting patients. After the pandemic has learned hard lessons from the new normal, it could help get IBM stock back on its feet.
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When you hear the Nvidia brand, video games probably come to mind first. And that’s not a bad thing, believe me. Before the pandemic, video games, especially the rise of esports, helped fuel the upward trend for NVDA stocks. During the lockdowns and the new normal, this entertainment platform helped pass the hours when other options were off the table.
Despite its dominance in gaming, Nvidia wants to let you know that it leads the way in artificial intelligence stocks too. The company’s partnership with Walmart (NYSE: WMT) illustrates this relationship perfectly. As a big box retailer, Walmart constantly has to make critical decisions about its inventory: how much to buy, when to ship, and to which stores, among myriad other concerns.
Fortunately, Walmart has developed advanced data analysis software that draws on decades of data for hundreds of millions of products. However, sophisticated hardware is required for all data processing. Otherwise, you are not going anywhere. This is where Nvidia comes in with its graphics processors. Sure, they’re best known for their gaming applications, but they can do a lot more.
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Unsurprisingly, NVDA stock has important ties to other emerging industries such as self-driving technologies and the blockchain. Hence, keep this on your short list of artificial intelligence stocks to buy.
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Politics aside, check out China if you want to add artificial intelligence to your portfolio of stocks. Companies like Tencent really are in an enviable position. For one, Tencent’s home market has become a technological powerhouse. Second, China’s massive population means plenty of room for growth, improved connectivity, and the largest data goldmine.
In addition, Tencent has far-reaching ambitions for its AI initiatives. As a provider of Internet content and social networks, the company optimizes personalized ads and suggestions for millions of users. In addition, Tencent has more serious endeavors like medical AI applications. This is about using technology to help doctors identify and prevent the spread of disease.
Since the coronavirus originated in China – as President Trump reminds us every day – this application seems very relevant to TCEHY stock.
Of course, nothing can be separated from politics these days, and so is Tencent. As the owner of WeChat, the messaging / payment app has come under fire from the Trump administration. And that could mean TCEHY stock is on shaky ground, at least until we find out who will rule our nation on November 3rd. However, given the above characteristics of the home market, the chance of an uptrend is enticing.
The analysis of artificial intelligence stocks is usually upscaled solutions. In this list, we’ve covered the impact AI can have on our purchasing decisions, interactions with machines, forecasting inventory needs, and improving health outcomes. But AI doesn’t have to be that serious. Instead, it can help with this age-old longing for love.
That’s right, for those looking to support Cupid, online dating apps, like those under the Match Group umbrella, can speed up your search for a soul mate. But what if Cupid needs help too? Increasingly, the mythical god has turned to artificial intelligence for appropriate matches.
In some ways, this is probably the most ingenious use of AI. By now, many of these dating sites and apps have collected an enormous amount of behavioral data. This is also due to the stigma of online dating. With the novel coronavirus disrupting offline dating, Match is one of the best places to go. Right here, there’s a good reason to think about MTCH stocks.
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Better still, Match harnesses the power of AI to promote a safe dating environment. The company invested in Noonlight to provide security features like location tracking in case a meetup goes wrong. That is smart thinking that should separate MTCH stocks from other social networking investments.
Trade Desk (TTD)
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Long before the pandemic, the phenomenon of cable cutting put increased pressure on traditional cable television providers. With the advent of networked TV and streaming services, these innovations triggered never-before-seen features, such as on-demand television. Instead of people who revolve their lives around content planning (as in linear television), the new generation of entertainment has been adapted to the individual.
After the coronavirus hit, the pressure to cut the cord increased for many households. This was especially true in the early days of the crisis, when new content offerings were thin but the bills kept mounting. But pandemic or not, streaming and connected television are here to stay. And that makes Trade Desk a relevant idea among stocks with artificial intelligence.
Primarily, the company uses AI algorithms to maximize advertisers’ return on their associated TV dollars. This is much easier now as Trade Desk has access to a wide variety of viewer data. In this way it can be determined exactly which advertising strategies work best, which supports the representation of the TTD stock.
Additionally, once live sports return, Trade Desk may have an opportunity to evangelize its services. Due to the added pressure of cable cutting, the live sports streaming audience has likely grown significantly. This plays into the hands of TTD stocks, where the underlying company can help advertisers schedule the possibility of games that will be overtaken and likely to see significant spikes with engaged viewers.
At the time of this writing, Josh Enomoto held positions (neither directly nor indirectly) in any of the securities identified in this article.
Josh Enomoto, former senior business analyst at Sony Electronics, has helped broker large business deals with Fortune Global 500 companies. Over the past several years, he has provided unique, critical insights for the investment markets as well as various other industries including law, construction management and healthcare.
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