Is Now The Time To Add These Top Artificial Intelligence Stocks To Your Portfolio?
While investors wonder why stocks are dropping today, artificial intelligence (AI) stocks could be worth watching. Why? For starters, they are likely trading lower in today’s stock market as tech stocks sell-off amidst inflation and crypto-related issues. While this may be the case, their long-term growth prospects remain unchanged. Accordingly, this is because of the rapid adoption of AI tech in our world today. In fact, Bank of America (NYSE: BAC) equity strategist Felix Tran released a related research note on the “Future of Work” just last week. Tran cites pandemic-fueled economic digitization as a key growth factor for the AI industry right now. Moreover, the World Economic Forum also predicts that machines and automation could take over 85 million jobs by 2025. With the stage seemingly set for the AI industry, I could see investors looking for possible points of entry now.
For example, we could look at the likes of AI giant Google (NASDAQ: GOOGL). Yesterday, the company held its first developer conference since 2019, making numerous exciting announcements across its portfolio, AI tech included. According to CEO Sundar Pichai, Google is now looking into natural language processing which would bolster its search engine’s capability to answer open-ended questions.
Elsewhere, Microsoft (NASDAQ: MSFT) is currently working with Darktrace, an autonomous cybersecurity AI company to bolster its services as well. The duo is reportedly looking to provide AI-powered digital threat response services to Microsoft’s larger clients. By and large, we can see that the applications for AI continue to grow by the day. As such, it would make sense then for investors to be eyeing artificial intelligence stocks. If you are interested, here are three making headlines in the stock market today.
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Salesforce is a global industry leader in customer relationship management (CRM). In essence, its technology gives a complete view of a user’s customers. This would then allow its users to manage every sale, marketing, or service interaction. Through the company’s AI platform, Einstein, Salesforce helps to provide deep insights from customers based on past interactions. It allows users to use these insights to strengthen relationships, prioritize leads, cases, and campaigns to help businesses grow. CRM stock currently trades at $219.52 as of 12:38 p.m. ET.
On Tuesday, the company’s subsidiary, MuleSoft, introduced the next major release of Anypoint Platform with DataGraph. The new Anypoint DataGraph will allow customers across industries to create composable business capabilities and deliver seamless digital experiences faster. Customers will also be able to increase productivity and accelerate time to value. Late in April, the company was announced for the eighth consecutive year as the #1 CRM provider by International Data Corporation (IDC). The company grew its overall market share position and increased its revenue more than any other CRM vendor. IDC also reported that Salesforce is the market share leader in sales applications, customer service applications, and enterprise community applications.
To top things off, the company also reported a strong quarter in February. It reported fourth-quarter revenue of $5.82 billion, up by 20% year-over-year. A majority of this revenue came from its main business, subscription, and support. The company also reported a diluted earnings per share of $0.28. It also ended the year with $11.97 billion in cash, cash equivalents, and marketable securities. Given all of this, will you consider adding CRM stock to your portfolio?
Nvidia is an industry-leading AI company that has captured the world by storm. It has essentially redefined modern computer graphics and pioneered work in accelerated computing and AI. The multinational technology company is also the pioneer of the graphics processing units (GPUs) for the gaming and professional markets. Its GPUs are often used in deep learning and accelerated analytics due to its API CUDA. CUDA allows for parallelization, which can dramatically increase the training speed of machine learning algorithms. NVDA stock currently trades at $558.37 as of 12:38 p.m. ET.
Last week, the company announced a new wave of GeForce RTX laptops from the world’s top manufacturers. “Consumers are spending more time than ever on laptops — PC gamers, creators and students are all driving demand for massive improvements in graphics horsepower and AI-accelerated applications,” said Bob O’Donnell, president, and chief analyst at TECHnalysis Research. “Laptop manufacturers are responding to this market momentum by designing thinner, higher-performing models to meet the various needs of consumers — it’s no wonder NVIDIA GPUs are powering so many new designs.” This would help fuel Nvidia’s growth in the long run given how graphical processing continues to be in high demand.
In February, the company posted record fourth-quarter and full-year financials. Firstly, quarterly revenue was $5 billion, a 61% increase year-over-year. The company’s Gaming and Data Center platforms also achieved record revenue for the quarter and year. It also reported a GAAP earnings per diluted share of $2.31, up 51% from a year ago. This is a given as demand for its latest generation GPUs is at an all-time high. With so much going on for the company, will you consider buying NVDA stock?
Amazon is a multinational technology company known for its e-commerce prowess. However, the company has also been making huge strides in AI. Specifically, it focuses on machine learning-based systems. Its AI platform allows it to grow its business, improve its customer experience and selection, and optimize its logistics speed and quality. Additionally, the company also employs AI tech through its Amazon Web Services (AWS) cloud computing service. AMZN stock currently trades at $3,215.56 as of 12:39 p.m. ET.
In late April, the company announced its first-quarter financials, much to investors’ delight. Net sales for the quarter increased by 4% to $108.5 billion. Net income increased by over 200% to $8.1 billion or $15.79 per diluted share. Amazon also increased its free cash flow to $26.4 billion for the trailing twelve months. The company also reported having over 200 million paid Prime members worldwide. Furthermore, AWS announced significant customer momentum, with new commitments and migrations from customers spanning many industries. Not to mention, AWS reportedly announced the opening of its first office in Bucharest, Romania, expanding its presence in the region.
Overall, Amazon continues to make the most out of AI across all its core operations. With its leading AI-powered cloud platform and rising digital acceleration trends, would you consider AMZN stock a top AI stock now?