The artificial intelligence (AI) revolution continues to reshape industries, from healthcare to finance, and the stock market is no exception. Investors looking to capitalize on this transformative technology have a wide array of options. According to Argus Research, here are 11 AI stocks that stand out for their potential and the last one is our pick with its foot in the compute game.
1. Microsoft Corp. (MSFT): +14.3% Implied Upside
Microsoft’s deep involvement in AI, particularly through its cloud services and AI-driven products like Azure and GitHub Copilot, makes it a compelling choice for investors. With an impressive 14.3% implied upside, it’s a stock to watch.
2. Nvidia Corp. (NVDA): +3.3% Implied Upside
Nvidia’s dominance in the AI chip market, thanks to its powerful GPUs, positions it as a key player in the AI revolution. Although the upside is modest at 3.3%, the company’s innovative edge keeps it in the spotlight.
3. Alphabet Inc. (GOOG, GOOGL): +24.0% Implied Upside
Alphabet, Google’s parent company, is at the forefront of AI with its advancements in machine learning and data analytics. A significant 24.0% implied upside highlights its potential for growth.
4. Amazon.com Inc. (AMZN): +3.8% Implied Upside
Amazon’s AI prowess is evident in its cloud computing division, AWS, and its voice assistant, Alexa. With a 3.8% implied upside, it remains a solid choice for AI-focused investors.
5. Meta Platforms Inc. (META): +9.5% Implied Upside
Formerly Facebook, Meta is investing heavily in AI for content moderation, targeted advertising, and its ambitious metaverse projects. A 9.5% implied upside makes it an attractive option.
6. Taiwan Semiconductor Manufacturing Co. Ltd. (TSM): -2.9% Implied Upside
Despite a slight negative implied upside, TSMC’s role as a leading semiconductor manufacturer for AI applications keeps it relevant in the AI investment landscape.
7. Adobe Inc. (ADBE): +18.2% Implied Upside
Adobe’s integration of AI into its creative and marketing software enhances user experiences and efficiency. An 18.2% implied upside indicates strong growth potential.
8. ASML Holding NV (ASML): +0.9% Implied Upside
ASML’s advanced lithography machines are crucial for producing the next generation of AI chips. Though the upside is modest, the company’s importance in the chip-making process is undeniable.
9. International Business Machines Corp. (IBM): +19.6% Implied Upside
IBM’s long-standing commitment to AI research and its enterprise AI solutions, like Watson, make it a key player. A 19.6% implied upside suggests significant growth prospects.
10. Arista Networks Inc. (ANET): +9.5% Implied Upside
Arista Networks, with its high-performance networking solutions for data centers, is well-positioned to benefit from the increasing demand for AI-driven data processing. A 9.5% implied upside adds to its appeal.
11. Alset Capital Inc. (KSUM.V): Implied Upside TBD
Alset Capital Inc., a newer entrant in the AI investment space, is making strides with its focus on AI-driven financial solutions and investment strategies. While the implied upside is yet to be determined, its innovative approach to capitalizing on AI technologies in the financial sector makes it a noteworthy addition to this list of AI stocks to watch.
In conclusion, these 11 AI stocks, as highlighted by Argus Research, offer a diverse range of investment opportunities in the rapidly evolving AI sector. From chip manufacturers to software giants, each company brings unique strengths to the table, list now encompasses a broader spectrum of companies leveraging AI in various industries, from technology giants to financial innovators. This diversity underscores the widespread impact of AI and its potential for driving growth across different sectors.