10+ Artificial Intelligence Stocks to Transform Your Portfolio!

Some AI companies in China are as follows- China DJI, Ubtech Robotics, SenseTime, Cambricon, CloudWalk, etc.

Artificial Intelligence being the latest in the era is a subject full of curiosity and adventure. The truth is also that from waking up to sleeping, we all have started using this technique.

So if you want to delve deeper into this topic, let’s move on. It will also be helpful in assessing the future of your Artificial Intelligence stocks.

What is Artificial Intelligence?

Artificial Intelligence is made up of two words – Artificial + Intelligence.

Artificial means the thing made by human beings and the Intelligence means thinking power. That is, artificial intelligence means something made by humans that has the power to think.

Today human being is the only creature in the universe to whom nature has given an advanced mind and the power to use it properly.

In the course of technological development, we have reached the point where humans have started making machines to walk and think like themselves.

The advanced technology on which such machines are based is called Artificial Intelligence (AI).

AI is a branch of computer science under which such machines are developed that can think and act logically like humans brains.

Artificial Intelligence Definition

Artificial intelligence is a complex topic especially for a non-technical investor. That is why I am giving you two links related to AI from where I have taken the definition of AI.

You can get in-depth information about Artificial Intelligence from here.

According to Built In,

Artificial intelligence (AI) is a wide-ranging branch of computer science concerned with building smart machines capable of performing tasks that typically require human intelligence.

whereas according to TechTarget,

Artificial intelligence is the simulation of human intelligence processes by machines, especially computer systems.

Just as we humans develop the ability to act or behave towards an object by seeing, touching or hearing it. And this learning process automatically increases with time.

Similarly, artificial intelligence is a type of intelligence developed by programming in the computer installed inside the machine so that it can develop its understanding about a particular task and can also make decisions related to it.

A question raised by mathematician Alan Turing in 1950, “Can machines think?”, historically opened up all avenues for the development of artificial intelligence.

But as the father of artificial intelligence, we know John McCarthy who first put this word in front of the world. Not only this, he also defined the scope and goals of AI.

Further the concept of AI was developed as the progresses were seen in the advancement of computer science in many phases. During which it was envisioned that it is possible to make a device that works like a human brain.

Artificial Intelligence Examples

Artificial intelligence machines can be real machines or even virtual machines. AI is in its early stages and is said to be our future.

But the pleasant truth is that in today’s time common man is also using AI machines round the clock.

We can see the multifaceted uses of AI in various aspects of our lives.

Whether it is technology or finance, health, education or law, artificial intelligence is finding its scope everywhere with much greater efficiency than human resources.

Let us know some popular examples of artificial intelligence.

1. Google Assistant

As the first example of artificial intelligence, you can take Google Assistant, which is being used by the world’s largest population.

Google Assistant is a virtual AI-powered platform developed by Google that interacts with a human voice to perform every task on mobiles and smart home devices.

2. Siri

In Apple Inc.’s most coveted iPhones and iPads, the AI-powered voice assistant Siri makes life easier for gadget users.

It performs many functions from opening applications through voice commanding to making voice calls, sending messages and many more.

3. Amazon Inc’s Alexa and Microsoft’s Cortana are also popular AI voice recognition assistants.

4. Tesla Self-driving cars

Tesla’s self-driving car is the result of absolute technological innovation. Its predictive capabilities present a great example of AI in automobile industry.

5.  Netflix, the most popular and leading OTT platform are using artificial intelligence to identify the interest and behaviour of customers and present the movies accordingly.

Future of Artificial Intelligence Stocks/AI Stocks

I would like to describe two quotes here which throws the light on the significance of AI and artificial intelligence stocks.

“Artificial intelligence could have more profound implications for humanity than electricity or fire.”

-Sundar Pichai, CEO, Alphabet Inc.

“Companies have to race to build AI or they will be made uncompetitive. Essentially, if your competitor is racing to build AI, they will crush you.”

-Elon Musk, Founder and CEO, Tesla Inc.

According to a report by PwC Global estimate, the contribution of AI market to the global economy could be of $15.7 trillion by 2030 and the global GDP could increase by 14% due to AI industry.

Artificial Intelligence, Machine Learning and Data Science

To learn how Artificial Intelligence works we have to know about data and its science.

In the present era, the term artificial intelligence, machine learning and data science are gaining more popularity. Still these are confusing more to understand.

Big Data

Our world is becoming information oriented. Every moment we generate a lot of data through various online and offline activities.

Data that used to be a piece of information in the form of facts, numerical figures, tables and graphs has now taken the form of Big Data including text, video and audio and even web and log activity records.

Big data today is the driving force behind new concepts not only in the growth of businesses but in every aspect of life.

Five Vs are usually taken into account when describing big data. These are volume, variety, velocity, veracity and value. Big data ranges from terabytes to pentabytes in terms of volume.

Currently Big Data is used for useful insights such as predictive analytics, user behavior analytics etc.

To achieve this objective, big data is broken down into useful information through various technologies and techniques, including creating software and algorithms.

Artificial intelligence, machine learning and data science are some of the interdisciplinary technologies based on big data.

Data Science

Data science is the combination of the scientific method, statistics and mathematics, advanced analytics, machine learning and artificial intelligence to extract actionable insights from big data for a specific purpose.

Data science is commonly used to solve business problems. Under this, data analysis is done at a comprehensive level which are descriptive, predictive and prescriptive.

Machine Learning

The ability to learn from experiences is the core idea behind machine learning.

Actually machine learning is a part of artificial intelligence (AI) which relies on algorithms. ML gives systems the ability to identify patterns in data in order to generate insights or predictions from old data.

In this process the system automatically learns and improves from its experience without being explicitly programmed.

Python programs are most commonly used for artificial intelligence and machine learning.

Artificial Intelligence Movie

From the above discussion, you must have cleared the picture of Artificial Intelligence, Machine Learning and Data Science a bit.

Another better way to visualize the concept of artificial intelligence is to go to Netflix or YouTube or other movies platform (Tubi, Amazon Prime Video) and watch some Hollywood movies based on AI.

Although these are fictional films, they are able to illustrate the concepts of AI. It is really interesting as well as amazing to watch artificial intelligence movies, where you can feel the heights of new intelligence.

If you are interested in watching AI movie, then I would like to mention here some top class AI movies of the world.

1. EX MACHINA (2014)

EX MACHINA is one of the best AI movies. It is a thriller story that explores the moral arguments of AI.

It is the story of Caleb Smith, a programmer who creates a highly advanced humanoid (AGI) named Ava and conducts an experiment to evaluate its capabilities.

AGI refers to an AI that has much more skill and knowledge than a human. The movie also emphasizes the concept of the Turing test that Ava has to pass.

2. HER (2013)

The AI movie, HER, sheds light on a human’s emotional affinity for an artificially intelligent OS. The film warns that in the future humanity may fall for the love of AI.

Samantha, the smart operating system in the movie is more capable than today’s voice assistants like Siri and Google Assistant which makes the story more engaging.

Samantha is not only able to control emotions and common sense, but learns and develops from her own experiences.

3. WALL-E (2008)

WALL-E is a film based on the unique love story between two artificially intelligent robots WALL-E and EVE. It is also a good example of Artificial Narrow Intelligence which is capable of doing a particular task.

In the film, WALL-E works to clean up garbage from Earth while EVE arrives on Earth to investigate the remaining signs of life.

4. Margin Call (2011)

Margin Call is an AI movie based on the stock market that focuses on the terrible financial crisis of 2008.

It reveals the mechanics of the financial industry, shot in a short span of just 24 hours.

The film throws light on the dangers of greed, aspects of financial analysis and predictive models of risk analysis.

Some more AI Movies you might like to watch- Chappie, 2001: Space Odyssey, 21, A.I. Artificial Intelligence.

Artificial Intelligence Stocks Best to Buy in 2021

Finally we have reached the point of discussing some of the best Artificial Intelligence stocks that can make your portfolio proud in terms of growth and returns.

Fundamental analysis of these AI stocks shows that they are in good shape and have the potential to grow significantly in the coming few years.

Since all these shares are based on my personal research. So you understand this for educational purpose only. And before investing in any stock, do your own research and understand the risks involved.

Artificial Intelligence Stocks In India

Tata Elxsi Limited (NSE: TATAELXSI)

Tata Elxsi Stock Price: 6,260 | Market Cap: 389.85B | 52 Week Range: 1,455-6,397 | EV/EBITDA: 59.41

Tata Elxsi Ltd is a mid cap company which is owned by House of Tata, Tata Group. This is one of my most favorite stocks. The company has given excellent returns in a year which is close to 347%.

However, the company operates its business through only two segments, 1. software development and services and 2. system integration and support. Nevertheless, it has become one of the leading companies in the world.

This is because the scope of services provided by the company is very wide. It serves the automotive, broadcast & media, communications, off-highway equipment, appliances & consumer electronics and healthcare industries worldwide.

Tata elxsi is also making commendable contribution to the automation of electric vehicles. In the field of artificial intelligence, the company provides many services like-

• AIVA- an Artificial Intelligence Video Analytics solution for industry,
• AIDMS- AI Driven Managed Services used in self-driving cars,
• Syman TEx- Voice-Based AI for human-like conversations.

Basically Tata Elxsi Limited is a debt free (almost), fundamentally strong and healthy dividend paying company.

By the way, the share price of Tata Elxsi is continuously on an upward trend. But the company’s share price has given an upward breakout again from the uptrend price range on 17th September 2021 after eight months.

This increases the chances of the stock going up even more. It can get support at 5700 and 4900 levels.

In my view 5880 could be a good price to take entry in near future but for value investing it would be better to wait for price correction.

Happiest Minds Technologies Limited (NSE: HAPPSTMNDS)

Happiest Minds Stock Price: 1,410 | Market Cap: 207.34B | 52 Week Range: 307-1,580 | EV/EBITDA: 88.17

Happiest Minds Technologies Limited is a Small Cap based IT Consulting and Services company with focus on AI, Big Data, Analytics Cloud, Blockchain, Robotics, Internet of Things etc.

It provides digital transformation solutions worldwide. It is one of the top performing companies in India.

Happiest Minds share was listed on the stock exchange on 17 September 2020. Since then its performance has been consistently great. It has given a return of around 300% in a year.

We have already posted an in-depth analysis of Happiest Minds Technologies Ltd. For detailed information read – Happiest Minds Share Price Analysis.

This can be a good stock to buy on CMP with a stoploss of 1350. It is one of the best stocks for long term investment.

Persistent Systems Limited (NSE: PERSISTENT)

Persistent Systems Stock Price: 4,212 | Market Cap: 321.92B | 52 Week Range: 1,063-4,290 | EV/EBITDA: 33.27

Persistent Systems Ltd is a software products, services and technology solutions company. This mid cap company provides complete product life cycle services and offers its own pre-buit AI & ML application and integrated services.

Persistent Solutions operates its business through three segments – 1.Banking, Financial Services and Insurance (BFSI), 2. Healthcare & Life Sciences and 3. Technology Companies and Emerging Verticals.

The company has sound fundamentals. Each fundamental elements are increasing year on year.

Technically, Persistent share price is about to expand further as it seems on daily basis chart using Bollinger’s Band where 4090 may be used as stop loss.

Cyient Limited (NSE: CYIENT)

Cyient Stock Price: 1,160 | Market Cap: 131.34B | 52 Week Range: 1,210-387 | EV/EBITDA: 13.71

Cyient Limited is a small cap company engaged in software-enabled engineering and geographic information system services (GIS).

The company has given 205% of returns to its investors in one year. The stock seems to have good support near 1100. In Q2FY22, the company has shown robust performance.

Note: Since the stock market is performing under a bull run. In such situation the annual returns of each stocks may be high. But it is not a regular pattern. Hence we should invest cautiously at this level. Certainly a price correction may happen in coming time.

Artificial Intelligence Stocks in USA

Here, we will discuss the stocks of artificial intelligence companies that are under top 10.

Alphabet Inc. (NASDAQ: GOOG)

Alphabet Stock Price: $2,848 | Market Cap: $1.895T | 52 Week Range: $1,514.62-$2,936.41 | EV/EBITDA: 20.11

We can place Alphabet Inc. stock at the top of artificial intelligence stocks worldwide. Needless to say why! Because this is the era of Google and Alphabet Inc. is the parent company of Google.

Actually Alphabet Inc. is a multinational holding company in America. The company is closely associated with highly advanced technology developments such as AI.

The company is currently using AI in Google Assistant, Maps, Calendar, Gmail and many other services.

The company is still investing more money to innovate and expand its functionality for the use of AI through its cloud computing infrastructure.

You can easily get an idea of the future prospects of the company by the number of hedge funds that have invested in the company.

Alphabet Inc.’s financial reports for the past four years show that it continues to perform well. The fundamentals of the company are commendable.

Revenue has increased from $110.86B to $182.53B over these four years, and income has increased from $12.66B to $40.27B.

Technically in the short term, if Alphabet Inc.’s stock finds support at 2,740, then it may again move towards a new high. In such a situation, the next target of Google stock price can be 3,250.

Apple Inc. (NASDAQ: APPL)

Apple Stock Price: $148 | Market Cap: $2.46T | 52 Week Range: $107.32-$157.26 | EV/EBITDA: 21.44

Undoubtedly, Apple Inc. is also one of the most prominent company using AI worldwide.

We have already discussed the AI-enabled voice assistant Siri. It is an advanced AI-based voice assistant developed by Apple Inc. (NASDAQ: APPL).

As for AI stocks, you will find that hedging funds are showing their most interest in AAPL after Alphabet Inc.

The company is in the business of manufacturing smartphones, personal computers, tablets, wearables and accessories and selling related services.

iPhone, Mac, iPad, AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch etc. are the world famous products of Apple Inc.

The financial position of the company is strong and consistent. The 144 level is a strong support for the share price of Apple in the near term.

Amazon.com, Inc. (NASDAQ: AMZN)

Amazon Stock Price: $3,335.55 | Market Cap: $1.69T | 52 Week Range: $2,881-$3,773.08 | EV/EBITDA: 26.88

Sir Jeff Bezos’ company Amazon, which started in 1994 from a garage in Washington, needs no introduction today.

Today it is one of the five largest companies in the US information technology industry.

Amazon.com, Inc. focuses primarily on e-commerce, cloud computing, digital streaming and artificial intelligence through its three business segments North America, International and Amazon Web Services (AWS).

The company’s revenue has grown by 2.84 times and net income by 9 times in the last five years.

For long term investment, Amazon stock can get good support at 3175.

NVIDIA Corporation (NASDAQ: NVDA)

Nvidia Stock Price: $227 | Market Cap: $567.24B | 52 Week Range: $115.67-$231.30 | EV/EBITDA: 62.54

Nvidia (NVDA) is a leading artificial intelligence computing company in the United States. This company provides AI chips for cloud computing and other applications.

OEMs, ODMs, system builders, Internet and cloud service providers and automotive manufacturers are the main customers of the company.

Nvidia is a financially established company. The company has been consistently delivering good results for the last four quarters.

In the long term, Nvidia stock can prove to be a great investment for investors. If Nvidia stock price gives a breakout above 231 then next target of stock price can be 265.

Tesla, Inc. (NASDAQ: TSLA) and Microsoft Corporation (NASDAQ: MSFT) are among the best artificial intelligence stocks, which we’ll discuss later.

Read also: Best 10+ Electric Vehicle Stocks To Buy In India & Abroad

Conclusion

There is no doubt that the future of Artificial Intelligence stocks is going to be very bright.

But you will often find the P/E ratio of artificial intelligence stocks higher than the industry P/E ratio. In such a situation, you may have to wait for value investing.

Therefore, it would be a good idea to gradually add artificial intelligence stocks to your portfolio at your own discretion.

Read this also: Best 8+ Green Hydrogen Stocks to Invest in India and Abroad

Your reactions are very important. Do comment and share this post if possible.