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5 'Strong Buy' Artificial Intelligence Stocks

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Everyone is talking about artificial intelligence (AI) right now- with many predicting that AI will lead the next wave of economic growth and productivity for the next couple of decades at least. However not all the big-name AI stocks have such a confident outlook from the Street. For example, Nvidia (NVDA) has a moderate buy analyst consensus rating while Advanced Micro Devices (AMD) and Tesla (TSLA) have hold ratings. All three of these stocks have an average analyst price target below their current share price as fears of a correction continue to make analysts like Goldman Sachs' Toshiya Hari cautious

To find less risky AI investing opportunities we looked for stocks with a strong buy consensus rating from the Street's best performing analysts. This limits the consensus to ratings from analysts with the highest success rate and average return- and cuts out analysts that underperform the market. And if a stock has a strong buy rating, it is also more likely to have promising upside potential.

How to find top-rated stocks

You can find ‘strong buy' stocks by adjusting the setting on the stock profile page to ‘best-performing analyst consensus and price target' as below- and see if the stock has a strong buy consensus rating:

Or, if you are looking for investing inspiration then TipRanks' new stock screener is the perfect tool to use. It offers a number of unique stock filters, including this one pictured here which automatically pull up stocks with a strong buy analyst consensus rating specifically from best performing analysts.

So now we know how to find strong buy rated stocks- let's delve in and find the hottest AI stocks in the market right now:

1 Salesforce (CRM)- (17 buy, 2 hold ratings, 15% upside)- cloud computing company Salesforce launched its AI-powered Einstein Analytics platform on June 15.  According to the press release: "Einstein Analytics adds a layer of artificial intelligence to the entire analytics workflow, automatically surfacing CRM insights and recommending actions to accelerate sales, improve customer service and optimize marketing campaigns."

2 Microsoft (MSFT)- (16 buy, 1 hold, 1 sell, 7% upside)- at the beginning of 2017, Microsoft acquired Canadian AI company Maluuba. Maluuba specializes in deep learning and teaching machines to think and ask questions. The company has just made headlines by making the impossible possible and using its AI capabilities to beat Ms. Pac-Man- a notoriously difficult arcade video game. MSFT CEO Satya Nadella repeatedly says he wants to "democratize AI".

3 Alphabet (GOOGL)- (18 buy, 4 hold, 13% upside)- Alphabet has made the most AI acquisitions (followed by MSFT), according to research firm Quid which calculated that GOOGL has made 20 acquisitions in the AI world. Google CEO Sundar Pichai recently spoke about the "AI first" future at the company's 2017 developer conference, where he revealed Google Lens (a camera that can recognize what it sees) and a new technology called AutoML which uses neural networks to build better neural networks- essentially creating an AI that can create itself.

4 Baidu (BIDU)– (4 buy, 1 hold, 17% upside)- this Chinese internet company, the "Google of China" as it is often called, has been investing heavily in AI to give it an edge against Chinese competitors like Tencent and Alibaba. Indeed, Baidu has spent $2.9 billion on R&D in just 2.5 years, and the majority of this has been dedicated to AI, says CEO Robin Li. The money has funded a 1700-member research team and four separate research labs. And crucially, Baidu can use the data extracted from its search engine- which has 665 million monthly users- to make quick deep learning progress.

5 Delphi Automotive (DLPH)- (5 buy, 1 hold, 12% upside)- Delphi is a global supplier of auto tech and has grown by 30% in the last year. The company, which has just spun off its powertrain business to focus on self-driving cars and electrical vehicles, has partnerships with multiple companies including Audi and the BMW-Intel-Mobileye cooperation which aims to bring a self-driving car to market by 2021.

Find strong buy stocks in the sector that interests you with the TipRanks Stock Screener now

The post Five ‘Strong Buy' Artificial Intelligence Stocks appeared first on TipRanks Blog.

Latest Ratings for CRM

DateFirmActionFromTo
Feb 2018JefferiesUpgradesHoldBuy
Nov 2017Roth CapitalDowngradesBuyNeutral
Nov 2017Credit SuisseMaintainsOutperform

View More Analyst Ratings for CRM
View the Latest Analyst Ratings

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Toshiya HariAnalyst Color Long Ideas Analyst Ratings Trading Ideas

 

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