AI technology is ever-present in today’s digital world, and AI stocks seem to have taken over from the dot-com ventures. Let’s have a look at the top AI stocks to watch in 2020.
RELATED: 4 Top SaaS Stocks To Buy This Year
The Best AI Stocks This Year
What is AI?
AI companies create technology that would typically need human intelligence to perform tasks, for example, self-driven cars or voice recognition. Many of the Top 5 ‘Big Tech’ companies (think Alphabet/Google, Amazon, Apple, Facebook, Microsoft) are developing their own intelligent technology.
Why Invest in Top AI Stocks?
2019 saw huge 50% returns for AI stock investors in Apple (NASDAQ: APPL), Facebook (NASDAQ: FB), and NVIDIA (NASDAQ: NVDA). Automation software is huge in the business industry, and the demand for the best technology to increase efficiency and reduce costs is driving competition.
Intelligent analysis is a very productive technology powered by artificial intelligence. Last year more economic technologies became available, and the reduced cost meant more organizations could invest in solutions to improve their activities.
Top AI Company Stocks
1 Alphabet (NASDAQ: GOOGL)
Google Cloud is entirely focused on transforming the world with the powers of AI.
Their mission is to provide organizations with the best infrastructure, platform, industry solutions, and expertise to enable them to use new digital technologies and information to transform their businesses. Large scale data management, artificial intelligence, and machine learning are key components.”
They have acquired more non-public AI companies than other technology companies and look at AI as their future first and foremost. They are pouring a lot of resources into this field to become a more dominant force.
2 Apple (NASDAQ: AAPL)
Apple has acquired over 20 AI companies in the last decade, indicating its dominance in the industry and its expanding presence.
They have invested heavily in research and development – Siri was the start of their AI acquisitions, and since then, they have used facial recognition technology in their iPhones. Their AI development looks set to improve their other products and enhance user experience.
Apple has sold over one billion iPhones, which could all have the potential of AI improvements.
3 Dropbox (DBX)
Dropbox uses AI in its mobile apps and has accrued a large user base, estimated at over 500 million mid-2019. Paying user numbers continue to grow, and the growth should be reflected in stock prices.
What makes this company one to watch is the rumors surrounding their acquisition by Salesforce and Microsoft. High demand for DBX services is set to remain, so they are one to watch this year.
4 Microsoft (NASDAQ: MFST)
Dominant Microsoft had expanded since its inception and survived when other tech companies failed.
Microsoft develops AI solutions in various fields, including data sciences, machine learning, and robotics, and applies these to the education, healthcare, and manufacturing industries, to name a few.
AI is already built into some Microsoft products such as Microsoft 365, Cortana, Bing, and Dynamics 365, and they have seen several quarters of growth and have millions of subscribers to their products.
Because of social distancing regulations, and most people working remotely, Skype (Microsoft’s free video-conferencing tool) has seen a massive surge in use.
Microsoft will continue to pave the way in the AI industry backed by its reliable technologies.
5 Salesforce (NYSE: CRM)
Salesforce has an exciting growth story, even pre AI development, but its venture into AI could see steady growth for years to come.
“Salesforce Einstein is a layer of intelligence within the Lightning Platform that brings powerful AI technologies to everyone, right where they work. And with the Einstein Platform, admins and developers have a rich set of platform services to build smarter apps and customize AI for their businesses.”
There is massive potential for business sales as they can use the technology to improve sales forecasts and predict the likelihood of closing business deals with prospects. If a company knows which clients to focus on, they can work much more resourcefully.
Which AI Stocks Will You Be Watching in 2020?
The above companies can make for smart trades, but ensure you do your research.
Keep a watchlist to track fluctuating stocks and have a ready to trade plan.
AI is a complex industry that is emerging in terms of technology and economic benefits. There is an unlimited potential that can be taken advantage of, and many companies are exploring what AI can do for them.
There is much possibility in AI, and so AI stocks are well worth following and keeping on your watchlist. New technology tends to come with rising issues and is expensive to develop.
The potential of the AI sector should continue to bring top AI stocks in 2020.
What AI stocks have you invested in if any? Or, are you a new investor? Can you take advantage of the AI uprising? Tell us about your investment journey below.