Top Performing Artificial Intelligence Stocks

Artificial intelligence (AI) seems to go predictably awry in the movies. Films like “The Matrix” or “The Terminator” turn robots on unsuspecting humans and a long war ensues. But the real AI technology under development intends to accomplish the opposite — improve our everyday lives and free up time for more productive activities. Interested in backing the industry? Read on for Benzinga’s top picks for the best artificial intelligence stocks to up your investing game. Investing in things like machine learning, chatbots, AI systems and more can bring massive profits, but which assets are best for your portfolio?

Quick Look at the Best Artificial Intelligence Stocks:

Deep Dive

Most Americans were introduced to AI by the 1968 Stanley Kubrick classic “2001: A Space Odyssey.” But AI research actually predates modern science fiction going all the way back to the 1940s.

Enhanced computer technology and memory space allowed the IBM supercomputer Deep Blue to defeat Garry Kasparov, world chess champion, in 1997. AI programs have beaten the best of mankind at a number of contests in recent years, including IBM Watson’s victory over Jeopardy mega-champion Ken Jennings.

AI advances are everywhere today. Amazon uses AI to recommend products to shoppers, Google utilizes it in searches and Facebook even scoops up artificial intelligence startups without abandon. But, how does machine learning impact the stock market and your investments? How can AI go outside human intelligence, provide you with better investment opportunities and make your computer science assets more valuable?

Research increases as computational power grows. Companies investing heavily in AI today could pave the way for more growth in the future.

Meta is the world's largest online social network, with over 2.5 billion monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos. On the video side, the firm is in the process of building a library of premium content and monetizing it via ads or subscription revenue. Meta refers to this as Facebook Watch. The firm's ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products. Users can access Facebook on mobile devices and desktops. Advertising revenue represents more than 90% of the firm's total revenue, with 50% coming from the U.S. and Canada and 25% from Europe. With gross margins above 80%, Meta operates at a 30%-plus margin.

ServiceNow Inc provides software solutions to structure and automate various business processes via a SaaS delivery model. The company primarily focuses on the IT function for enterprise customers. ServiceNow began with IT service management (ITSM), expanded within the IT function, and more recently directed its workflow automation logic to functional areas beyond IT, notably customer service, HR service delivery, and security operations. ServiceNow also offers an application development platform as a service (PaaS).

DocuSign offers the Agreement Cloud, a broad cloud-based software suite that enables users to automate the agreement process and provide legally binding e-signatures from nearly any device. The company was founded in 2003 and completed its IPO in May 2018.

A technology firm specializing in the development of consumer-level robots, iRobot is perhaps best known for its robot vacuum and mop. As Americans are in the office, the company’s products may experience a sales boost out of fundamental necessity.

Nvidia is the top designer of discrete graphics processing units that enhance the experience on computing platforms. The firm's chips are used in a variety of end markets, including high-end PCs for gaming, data centers, and automotive infotainment systems. In recent years, the firm has broadened its focus from traditional PC graphics applications such as gaming to more complex and favorable opportunities, including artificial intelligence and autonomous driving, which leverage the high-performance capabilities of the firm's graphics processing units.

Where to Buy AI Stocks

Artificial intelligence continues to grow at a rapid pace and finding shares to invest is no issue at most brokers. It’s easy to jump in as stocks and ETFs trade commission-free across the board now. 

Take a look at our features to look for in artificial intelligence stock before you commit. Remember, be it ChatGPT, natural language processing or some other form of AI technology, the right broker makes a big difference for every investor.

You can also branch out to other tech stocks which either benefit from AI or that will likely enter the AI space (Alphabet Inc (GOOG), Microsoft Corporation (MSFT), etc.)

How to Choose

1. True AI focus: Most major tech companies devote some financial and human capital toward AI development, but few have artificial intelligence at the forefront. Invest in a company that keeps an AI focus. Does it do more than pass the Turing test? Is deep learning actually occurring? Does the AI application have the abilities the marketplace desires? Computer systems that might leverage AI could also serve to be profitable as the technology spreads.

1. Strong management: The future of AI is hard to predict because technology moves fast while public and federal perception remain somewhat stagnant. The best companies involve vision and leadership from executives who want more than just a happy conference call every 3 months. A machine learning model is nice, and AI applications can look good, but you need more than a chatbot at the helm. The AI industry, like many, is filled with people who have great ideas, but are these tech giants looking at the business side properly? A tech stock cannot survive without proper leadership.

1. Pipeline of projects: Profits from artificial intelligence come from a variety of angles — driverless cars, virtual assistants, smarter search, automated customer service and more. Look for companies with a variety of projects consuming energy and capital. Generally, you would want to see AI products rolled out on a routine basis. As technology companies search for more revenue streams, the growth stocks in which you’ve invested should rise in value.