Best Artificial Intelligence Stocks

AI stocks tend to be clustered into the tech sector so volatility can be high on certain days. Here are the biggest winners and losers in the AI space today.

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Contributor, Benzinga
April 17, 2024

Meta Platforms (NASDAQ:META)

Meta is the world’s largest online social network, with 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.

$494.49
-5.27[-1.05%]
Last update: 7:59PM (Delayed 15-Minutes)
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Open503.100Close494.170
Vol / Avg.12.194M / 17.274MMkt Cap1.261T
Day Range487.140 - 503.16052 Wk Range207.130 - 531.490

ServiceNow (NYSE:NOW)

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).

$737.25
-7.53[-1.01%]
Last update: 6:05PM (Delayed 15-Minutes)
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Open746.780Close736.450
Vol / Avg.721.665K / 1.210MMkt Cap151.418B
Day Range734.950 - 748.99052 Wk Range427.680 - 815.320

DocuSign (NASDAQ:DOCU)

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.

$58.06
0.32[0.55%]
Last update: 4:00PM (Delayed 15-Minutes)
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Open58.000Close58.060
Vol / Avg.1.186M / 3.307MMkt Cap11.926B
Day Range57.120 - 58.57052 Wk Range38.110 - 64.760

iRobot (NASDAQ:IRBT)

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

Though iRobot experienced some disruption due to the pandemic, in 2020, the tech firm generated revenue of $1.43 billion, up nearly 18% from the year prior.

$7.08
-0.06[-0.84%]
Last update: 5:53PM (Delayed 15-Minutes)
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Open7.190Close7.030
Vol / Avg.1.486M / 3.218MMkt Cap203.601M
Day Range7.000 - 7.60052 Wk Range7.120 - 51.490

NVIDIA (NASDAQ:NVDA)

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.

$846.78
-27.37[-3.13%]
Last update: 7:59PM (Delayed 15-Minutes)
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Open883.400Close840.350
Vol / Avg.49.540M / 52.440MMkt Cap2.117T
Day Range839.500 - 887.75052 Wk Range262.200 - 974.000

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:

  • Meta
  • ServiceNow, Inc.
  • Docusign
  • iRobot
  • Nvidia

Overview

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.

Best Online Brokers for Artificial Intelligence Stock

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.)

Features to Look for in Artificial Intelligence Stock

  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.

Investing in Intelligent Machines

AI research may look scary in the movies, but the companies on this list aren’t looking to take over the world with an army of robots — at least not yet. AI chatbots are already out there, neural networks are extremely popular, but how will an AI assistant move from something simple to something far more complex.

The goal of companies like NVIDIA and Salesforce is to make human lives easier. AI can improve search function, organize businesses and turn complex processes into simple decisions. AI could allow humankind the best of both worlds — the creativity of the human brain with the precision and speed of a computer. 

Want to learn more? Check out a look at 5 applications of artificial intelligence, the best tech stocks and the best online brokerages. For more AI examples and information, come back to Benzinga every day.

Q

What are artificial intelligence stocks?

A

Artificial intelligence stocks are shares in companies that use technology to build products.

Q

Are artificial intelligence stocks a good investment?

A

There are many artificial intelligence stocks that are making great waves in the business world. Investing in these  stocks can be a great long-term investment.

Q

Which artificial intelligence stocks should I invest in?

A

To find Benzinga’s recommendations, check out the list above.

About Dan Schmidt

Dan Schmidt is a finance writer passionate about helping readers understand how assets and markets work. He has over six years of writing experience, focused on stocks. His work has been published by Vanguard, Capital One, PenFed Credit Union, MarketBeat, and Fora Financial. Dan lives in Bucks County, PA with his wife and enjoys summers at Citizens Bank Park cheering on the Phillies.