Artificial intelligence, or AI, is a rapidly evolving field that is transforming how we live, work, and play. Simply put, it’s a technological area that enables machines to mimic human intelligence—making decisions, recognizing patterns, understanding languages, and more. This powerful technology is already changing the face of several industries. This includes industries from healthcare and finance to entertainment and transportation, and its potential for future impact is vast. Hence, from an investment perspective, AI presents a broad array of opportunities.
AI stocks represent companies that either develop AI technologies or utilize them to enhance their products, services, or operations. These range from big tech companies to smaller firms that are pioneering novel applications of the technology. Investing in these companies allows individuals to capitalize on the growth and evolution of AI. Potentially reaping substantial returns as the technology advances and becomes more pervasive.
However, like any investment, AI stocks come with their own set of risks and considerations. The technology is still in its growth phase, and the landscape is highly competitive. The success of AI projects can be hard to predict, and companies in this space are often subject to regulatory scrutiny due to concerns over data privacy and ethical implications. Therefore, while the sector holds enormous potential, investors need to thoroughly understand the company and technology they’re investing in, and be prepared for possible volatility. Given this, let’s look at two AI stocks to watch in the stock market right now.
AI Stocks To Watch Today
Nvidia (NVDA Stock)
First up, Nvidia (NVDA) is a prominent player in the AI sector, well-known for its graphics processing units (GPUs). These GPUs are highly effective at handling the computations required for AI applications, especially those related to deep learning and machine learning. The company continues to innovate, developing specific hardware tailored to AI workloads.
Late last month, NVIDIA and SoftBank Corp announced a joint venture to create a platform for generative AI and future 5G/6G applications. The platform will leverage NVIDIA’s GH200 Grace Hopper Superchip and will be rolled out across new, AI-focused data centers in Japan, constructed by SoftBank. This innovative platform is aimed at facilitating the rapid deployment of AI applications and services worldwide. By utilizing the new NVIDIA MGX reference architecture with Arm Neoverse-based GH200 Superchips, they aim to enhance performance, scalability, and resource efficiency, all while reducing costs and increasing energy efficiency.
Since the start of 2023, shares of NVDA stock have advanced by 175.81% year-to-date. Meanwhile, looking at Tuesday’s pre-market trading session, NVDA stock is trading higher by 1.82% at $402.00 a share.
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Alphabet (GOOGL Stock)
As the parent company of Google, Alphabet (GOOGL) is deeply involved in AI research and applications. Google’s search engine, voice assistant, and self-driving car project, Waymo, are all powered by AI. The company’s cloud computing service, Google Cloud, also offers AI and machine learning tools for businesses.
Alphabet Inc., in their financial announcement for the first quarter of 2023, revealed results that exceeded what the market had forecasted. The tech giant reported an earnings per share (EPS) figure of $1.17 and revenue of $69.8 billion. These figures surpassed analysts’ consensus estimates for the quarter, which had projected an EPS of $1.06 and total revenues nearing $68.9 billion.
Year-to-date shares of Alphabet stock have increased by 38.73% so far. While, during Tuesday’s premarket trading session, GOOGL stock is trading slightly higher by 0.78% at $124.60 per share.