The AI Revolution: 5 Best AI Stocks to Watch in 2023

ai stocks

Despite Artificial Intelligence’s longstanding role as a fundamental aspect of corporate operations, the advent of cutting-edge “generative AI” tools, such as ChatGPT, has sparked a resurgence of fascination among the masses for this ground-breaking industry. As per a report from Precedence Research, the thriving field of artificial intelligence (AI) is poised for an exceptional surge in growth, with estimations indicating an impressive escalation from $119 billion in 2022 to a substantial $1,591.03 billion by 2030. This implies that the industry has the potential to exhibit a staggering compound annual growth rate of 38% from 2022 to 2030.

If you envision a future where AI reigns supreme, then you might want to consider investing in AI stocks to take advantage of this emerging trend. 

However, before delving into the list of top AI stocks to invest in for 2023, it is essential to acknowledge that AI encompasses a vast spectrum of applications, and companies employ this technology in a multitude of ways. While certain enterprises harness AI to optimize and streamline their operations, others are completely AI-oriented companies that provide a range of services, software, or hardware centered around this technology.

Here is a list of 5 best AI stocks with the potential to multiply in value over time:

1. (AI)

YTD returns: +205.9%

C3.AI is a California-based SaaS company entirely focused on providing artificial intelligence applications to international clients. It extends an extensive range of AI platforms, including C3 AI Ex Machina, C3 AI CRM, and C3 AI Data Vision, that enable clients to conceptualize, create, and implement AI-driven approaches. The firm also provides a wide range of AI-based solutions, namely C3 AI Production Schedule Optimization, C3 AI Fraud Detection solution, and AI Energy Management solution among several others.

The company has established several strategic alliances with industry leaders such as Baker Hughes in the realm of oil and gas, and FIS within the financial services sector, as well as with Raytheon, AWS, Google, Microsoft, and Intel to advance its mission.

Considering the relatively uncertain nature of this evolving domain, can be deemed a high-risk AI stock. Nonetheless, the company stands out as an industry pioneer with no direct competitors in sight. This unique market position holds great promise for the firm’s sustained success over the long run.

2. SAP SE (SAP) 

YTD returns: +19.54%

SAP SE is another Software-as-a-Service company that furnishes several software capabilities under its SAP S/4HANA umbrella as well as SAP SuccessFactors solutions, SAP Business Technology platform & network, and SAP customer experience solutions. 

The implementation of AI technology has been instrumental in enabling SAP to effectively utilize data from its accounting, finance, human resources, supply chain, and industrial processes to provide valuable insights to its customers. Ultimately, SAP is one of the leading AI-centric software companies in the world as it is significantly leveraging AI to optimize its customer solutions.

3. Micron Technology 

YTD returns: +18.34%

Micron Technology Inc is an Idaho-based semiconductor company that manufactures and sells storage and memory products internationally. Investing in Micron stock is another way to associate with the AI trends, as the firm specializes in producing high-quality memory chips that are in great demand for use in artificial intelligence applications.

In the past, Micron and other manufacturers of DRAM and NAND semiconductor chips were heavily reliant on the sales of PCs and servers only. However, with the increasing diversification of demand for memory products, the fluctuations in demand have become less pronounced. Amongst all, the advent of AI technology has specifically played a significant role in driving up demand for memory & storage products, as AI  applications require increasingly powerful hardware.

Moreover, thanks to sophisticated AI algorithms, data centers have become capable to utilize a wider range of factors when performing their calculations and Micron is well-positioned to capitalize on this trend. In fact, Micron foresees a doubling and tripling in demand for memory and storage per server, respectively, from 2021 levels by 2025, largely driven by the rapid progress in AI technology.

Note that AI is also helping Micron to enhance its manufacturing capabilities and efficiencies.

As the use of AI continues to proliferate, Micron as well as other semiconductor companies can expect to see a boost in their sales and revenue. 

4. Amazon Inc. (AMZN)

YTD returns: +19.33%

Amazon is a well-recognized multinational technology powerhouse that specializes in a range of services, including e-commerce, cloud computing, and digital streaming, among others.

At the forefront of technological innovation, Amazon has fully embraced the power of artificial intelligence. Ranging from the voice-activated Alexa and cashier-less grocery stores in Amazon Go, to the advanced machine learning capabilities of Sagemaker, Amazon’s use of AI is both diverse and ground-breaking.

But Amazon’s employment of AI doesn’t stop there. The e-commerce giant’s top-flight recommendation engines for shopping, video, and music streaming are all powered by algorithms driven by AI. Further, Amazon’s use of AI extends to determining product rankings and streamlining the logistic operations 

In 2022, Amazon Web Services (AWS) – an entity that leans heavily on AI – achieved a staggering revenue of $80 billion through its cloud services. From 2013 to date, the annual revenue of AWS’ cloud computing and hosting solutions has consistently ascended. 

Overall, it is undeniable that AI plays a vital role in Amazon’s strategic edge, though its precise impact on the company’s overall business remains challenging to quantify.

5. Microsoft Corp. (MSFT)

YTD returns: +19.89%

With its distinguished Windows operating systems and the MS Office suite, Microsoft is a prominent tech giant, popular as a household name across the world. Microsoft’s CEO Satya Nadella has consistently emphasized that AI is the future’s next big thing and has articulated the company’s plans to progressively incorporate this developing technology into its operations.

Recently, Microsoft has been making waves with its collaboration with OpenAI, the company behind ChatGPT. Since first investing in the tech start-up back in 2019, Microsoft has recently upped the ante with another $10 billion in funding following the successful launch of ChatGPT.

The tech giant has also introduced a fresh iteration of its Bing search engine, fueled by the impressive capabilities of ChatGPT. Not only that, but Microsoft is also actively working to integrate GPT features into a variety of its other products, from the Azure cloud infrastructure service to the popular Office productivity software suite and Edge web browser. 

The company is also employing AI in some secondary ways, such as streamlining healthcare documentation systems and empowering users to design personalized AI tools using Azure.

You may also like:


Santa claus rally
best stocks
Bitcoin ETF
best reit to invest in india
mutual funds to invest
You might also like
Crypto passive income
Euler Network