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Best Artificial Intelligence Stocks

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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.

Artificial Intelligence Stocks to Watch:

Symbol Company Change Price Invest
NVDA NVIDIA
+ 0%
$434.00 Buy stock
CRM Salesforce.com
+ 0%
$192.08 Buy stock
AMD Advanced Micro Devices
+ 0%
$76.88 Buy stock
BIDU Baidu
+ 0%
$124.60 Buy stock
ARKQ ARK Autonomous Technology & Robotics ETF
+ 0.15%
$52.36 Buy stock

Overview: Artificial Intelligence Stocks

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 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. 

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.

Commissions
$0
Account Minimum
$0
Get started securely through Webull’s website
Commissions
$0
Account Minimum
$0
1 Minute Review

Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.

Webull is widely considered one of the best Robinhood alternatives.

Best For
  • Active traders
  • Intermediate traders
  • Advanced traders
Pros
  • Commission-free trading in over 5,000 different stocks and ETFs
  • No account maintenance fees or software platform fees
  • No charges to open and maintain an account
  • Leverage of 4:1 on margin trades made the same day and leverage of 2:1 on trades held overnight
  • Intuitive trading platform with technical and fundamental analysis tools
Cons
  • Does not support trading in options, mutual funds, bonds or OTC stocks
Commissions
$0
Account Minimum
$0
Get started securely through JP Morgan Chase’s website
Commissions
$0
Account Minimum
$0
1 Minute Review

Chase You Invest is the retail brokerage arm of JP Morgan Chase, the largest bank in the United States. While most of the firm’s products are targeted toward wealthy clientele, You Invest gives novice investors a chance to learn about markets, select the best securities and plan for future goals like retirement. No futures, forex, or margin trading is available, so the only way for traders to find leverage is through options. 

Not all investors will appreciate the basic setup and simplistic trading suggestions, but plenty more want to learn about markets but just don’t know where to get started. Chase You Invest provides that starting point, even if most clients eventually grow out of it.

Best For
  • Investors using Chase banking products
  • Mobile traders
  • Retirement savers
Pros
  • Easy to navigate
  • Functional mobile app
  • Cash promotion for new accounts
Cons
  • No forex or futures trading
  • Limited account types
  • No margin offered
Commissions
$0
Account Minimum
$0
Get started securely through TradeStation’s website
Commissions
$0
Account Minimum
$0
1 Minute Review

TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.

Best For
  • Advanced traders
  • Options and futures traders
  • Active stock traders
Pros
  • Comprehensive trading platform and professional-grade tools
  • Wide range of tradable securities
  • Fully-operational mobile app
Cons
  • Confusing pricing structure to leave new traders with a weak understanding of what they pay
  • Cluttered layout to make navigating TradeStation’s platform more difficult than it should be

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.
  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.
  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.

Artificial Intelligence Stocks to Watch Out for This Year

AI development may steamroll forward, but legislation and regulation of new technologies are always a step behind. It’s important to keep in mind the role the government plays in unleashing the profits of these companies. 

AI research still makes some uneasy. Automation does have the potential to cause massive disruptions in the job market. Profiting from investments in AI will require patience, fortitude and probably a little legislative luck.

Here are our AI stocks to watch out for this year.

1. NVIDIA Inc. (NASDAQ: NVDA)

NVIDIA is responsible for many of the graphics processing units (GPUs) inside the most powerful video game consoles. But its vision exceeds what you see on an XBox or PlayStation. 

NVIDIA’s investments in AI research and development extend into many different avenues — DRIVE AGX for driverless cars, Tesla for AI-infused data centers, EGX for edge computing and NGX for deep learning software. 

NVIDIA has over 13,000 full-time employees. It’s been led by founder and CEO Jen-Hsun Huang for nearly 30 years. 

NVIDIA offers AI solutions for both public and private sectors and its balance sheet covers over $10 billion in cash on hand.

2. Salesforce (NYSE: CRM)

Salesforce is a software as a service (SaaS) company focused customer relationship management. But it has also pushed forward with AI research and development through its Einstein platform. Einstein allows clients to build AI-powered apps. 

The company is led by founder and CEO Marc Benioff. Salesforce has seen revenue growth increase each of the last 4 years and its cash position is currently stronger than ever.

3. Advanced Micro Devices Inc. (NSDQ: AMD)

Advanced Micro Devices is a chief NVIDIA’s competitor in the processor market. NVIDIA steals most of the headlines but AMD’s research into deep learning and machine intelligence is equally impressive. 

The company’s Radeon Instinct series is an open ecosystem for machine intelligence that seeks to build faster and more efficient data centers. 

AMD is run by CEO and President Dr. Lisa Su and employs over 11,000 people in Santa Clara, California. It features a low debt load — under $700 million in total debt with a $1.38 billion cash balance.

4. Baidu Inc. (NYSE: BIDU)

Baidu is a Chinese internet search company that employs nearly 37,000 people in Beijing. Baidu has been a force in AI development and filed over 5,700 AI patents in China during 2019 alone. 

ERNIE is an example of a patented product. It’s a pretraining framework that utilizes deep learning technology to operate a multitude of tasks. 

Baidu also has the Baidu Brain — an open-source AI ecosystem used by more than 1 million developers. Co-founder and CEO Robin Li Yanhong has run the company since its 2000 inception. He’s turned the company into the 1st Chinese firm to be listed in the NASDAQ 100.

5. ARK Autonomous Technology and Robotics ETF (BATS: ARKQ)

Picking winners in the AI space can be daunting. Why not go with an ETF that covers the entire sector? 

The ARK Autonomous Technology and Robotics ETF (BATS: ARKQ) has 36 different holdings from all over the world. The largest holding is Tesla, but ARKQ’s top 5 is rounded out by Proto Labs, 2U Inc., Stratasys and Xilinx Inc. 

Over 84% of the holdings are U.S.-based firms. Other countries represented include China, Japan, Belgium, Israel and Taiwan. 

More than 58,000 shares are traded daily on average. The fund contains over $200 million in assets, so liquidity won’t be an issue. The expense ratio is high, but the mix of companies in this ETF is a variation you won’t find elsewhere.

Biggest Artificial Intelligence Movers of the Day

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.

Gainers

Session: Aug 10, 2020 4:00 pm – Aug 11, 2020 3:59 pm
Symbol Open Close Change Change % Volume
Buy DLPH Stock – Trade For Free DLPH
Delphi Technologies
17.25 17.79 0.54 3.10% 1.84M
Buy EGAN Stock – Trade For Free EGAN
eGain
10.50 10.53 0.03 0.28% 10.13K
Buy BOTZ Stock – Trade For Free BOTZ
Global X Robotics & Artificial Intelligence ETF
26.30 26.34 0.04 0.15% 1.15M

Losers

Session: Aug 10, 2020 4:00 pm – Aug 11, 2020 3:59 pm
Symbol Open Close Change Change % Volume
Buy BTAI Stock – Trade For Free BTAI
BioXcel Therapeutics
45.17 43.20 -1.97 -4.37% 51.52K
Buy SYNA Stock – Trade For Free SYNA
Synaptics
86.57 83.45 -3.12 -3.61% 52.53K
Buy NVDA Stock – Trade For Free NVDA
NVIDIA
446.60 433.10 -13.50 -3.03% 8.27M
Buy TWLO Stock – Trade For Free TWLO
Twilio
250.05 245.00 -5.05 -2.02% 2.61M
Buy BIDU Stock – Trade For Free BIDU
Baidu
125.06 124.70 -0.36 -0.29% 1.81M
Buy IRBT Stock – Trade For Free IRBT
iRobot
70.39 70.25 -0.14 -0.20% 63.02K

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. 

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 Benzinga’s look at 5 applications of artificial intelligence, the best tech stocks and the best online brokerages.

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