It isn’t inaccurate to say that artificial intelligence (AI) is the future. The simplicity and convenience of operations application of AI has brought about across industries is phenomenal. Companies either use AI to streamline their internal operations to deliver a smooth user experience to their customers or sell products and services fundamentally based on machine learning.
AI-driven companies were not affected by the COVID-19 pandemic drastically, and their value continued to grow even during the pandemic. From AI-powered virtual assistants to self-driving cars, machine learning will open fresh avenues for brands to prosper.
With unfluctuating growth in the coming years, purchasing robotics and AI stocks can be a great investment option. If you think angel investing or investment is uncharted territory for you, we’ll give you the top artificial intelligence stocks to invest in, in 2021.
Top 5 Robotics and Artificial Intelligence Stocks for Investment
Machine learning will aid companies to scale up in many ways in the coming days. Here are top stocks to consider investing in this year –
1. IBM (NYSE:IBM)
IBM once led the tech world by storm, with the brand registering quite a standing in the market in the present day. IBM implements AI to reduce overall costs and complement human intelligence. AI has aided IBM in bringing about a considerable shift in the healthcare domain – enhancing healthcare services and quickened drug releases in the market.
IBM has partnered with JPMorgan Chase & Co. and Daimler AG to explore the understanding and application of quantum computing to gauge the price fluctuations of financial options.
With a massive turnover of over $70B in 2020, IBM is nestled in a sound financial valley. The tech giant is set to benefit largely from the AI boom, and investing in it can be a lucrative option.
2. NVIDIA (NASDAQ:NVDA)
NVIDIA is undoubtedly one of the top and high-performing AI stocks to invest in this year. The graphic chip company has benefitted from AI to emerge with leading graphic processing units and graphic cards for the gaming, computing, and automotive market.
With AI-driven semiconductors, NVIDIA’s offerings now supercharge gaming industries and self-driving cars. As a graphics processing unit maker initially, NVIDIA now designs end-to-end solutions to assist driverless car production.
Working towards acquiring the UK chip designer Arm, NVIDIA is aiming to launch an AI research center in Cambridge. Moreover, NVIDIA’s cash reserves surpass the company’s current debt standing – $6.96B debt against $11.6B cash. This is a good indicator of a stable financial status.
3. Amazon (NASDAQ:AMZN)
State-of-art technology has always been the propulsive force for Amazon, as the tech behemoth soared through the last couple of decades. Amazon has implemented AI as its focal point in many of its services – from Alexa the virtual assistant, Amazon Go cashier-less checkout grocery stores, to analyzing and mitigating risks – AI is deep-rooted in Amazon’s offerings. Amazon’s e-commerce store recommendations are dictated by ever-evolving machine learning algorithms too.
Recording consistent sales growth in the past, Amazon accounts for a high-premium stock. To complement the claim, Amazon’s net profit grew by a whopping 84% in 2020 from 2019.
4. Tesla Inc (NASDAQ:TSLA)
Tesla is a pioneer in the self-driving automotive and renewable energy tech space. With cutting-edge technology powering its cars that can drive themselves, it’s no surprise why Tesla is one of the most promising artificial intelligence stocks in 2021.
Self-driving technology relies heavily on artificial intelligence, which helps cars map out the terrain and avoid obstacles while keeping passengers safe. Tesla is the leading automotive brand to be the closest to Level 5 autonomous driving technology that allows vehicles to be completely independent of human intervention or supervision.
The large network of Tesla Superchargers makes its cars an obvious choice for consumers who are looking to adopt the futuristic self-driving tech.
Tesla posted $0.93 EPS and outperformed expectations of $0.78 by 19.42% as of its Q1 2021 earnings call. The automotive giant also posted a 73.58% Y/Y increase in revenue.
5. Apple Inc (NASDAQ: AAPL)
Apple has stood the test of time as one of the top-grossing consumer electronic companies with its iPhone and Mac product lines.
The Palo Alto-based tech giant is heavily invested in artificial intelligence and also produces its own AI-ready silicon chips that power its Mac computers. There are other ways Apple is implementing artificial intelligence, machine learning, and big data. A great example of state-of-the-art technology powered by AI is Apple’s Face ID security system that identifies people based on facial recognition algorithms that allow easy unlocking of iPhones and iPads.
Apart from this, Apple also uses this groundbreaking technology in Siri and the HomeKit platform that connects smart home appliances.
As of its Q2 earnings call of 2021, Apple posted an EPS of $1.40 and revenue of $89.58 billion, thereby outperforming Refinitiv estimates of $0.99 and $77.36B, respectively.
Artificial intelligence is arguably one of the biggest innovations in technology since the invention of the internet itself. Powering everything from mobile phones to smart home appliances and self-driving cars, the prospects for the growth of this technology are immense. This is why it makes sense to allocate a certain portion of your portfolio to this promising technology that will power our future.
We hope this list of the top five artificial intelligence stocks will help you decide which stocks to invest in this year.