May 26, 2024

Which AI Stocks Have Performed the Best?

When it comes to investing in AI, you might want to consider buying stocks but are not sure what’s out there. Keep in mind that any financial investment carries risks and there is no guaranteed return. You should research all options well and only consider risking what you can afford to lose. That being said, here is a list of a few of the historically best performing AI Stocks.

NVIDIA Corporation (NVDA)

NVIDIA has been a leading performer in the AI space due to its GPUs that are widely used for AI training. The GPUs (graphics processing units) are a type of chip used to display graphics on electrical devices and were originally created for PC graphics and gaming. However as they are able to compute really complex calculations their type of technology has been a crucial role in areas like AI, robotics, crypto mining and machine learning – all things incredibly popular these days.

The Chip Shortage:

In 2020 with the pandemic underway there were sudden demands for chips like never before. More people stayed home and companies experienced supply problems. Demands went up for gaming consoles and data centres and all this led to increased revenue for NVIDIA. The pandemic ended but the demand for chips is still going with the development of AI related industries in full swing.

Alphabet Inc. (GOOGL)

As the parent company of Google, Alphabet has a significant presence in AI through products like Google Search, Google Assistant, and Google Cloud. Alphabet has consistently shown strong financial performance and continues to invest in AI research and development.

Google’s TensorFlow AI systems have been used by the US Department of Defence in analysing drone footage and helping to detect objects and flag images for humans to review. ‘Project Maven’ uses machine learning and AI in hopes that it will allow an analyst to do twice or three times as much work.

Another Google project is Genesis, an AI tool for journalists with the purpose of assisting them in choosing headlines or writing styles to enhance productivity. Genesis reviews current events and creates news articles to assist journalists in their work.

Microsoft Corporation (MSFT)

Microsoft has made substantial investments in AI, offering a range of AI services through its Azure platform. The company has experienced consistent growth driven by its cloud services, including AI-related offerings, as well as its diversified technology portfolio.

Microsoft is heavily investing ($10 billion) in AI startup OpenAI, the creater of ChatGPT which provides users with text answers to any questions you ask. This partnership helps in their competition with alternative tech giant Google and so far ChatGPT and OpenAI’s image generating tool DALL-E have gained huge attention from various industries.

Amazon.com, Inc. (AMZN)

Amazon has been leveraging AI in various ways, including its AI-driven personalization algorithms, Amazon Web Services (AWS) cloud platform, and voice assistant Alexa. The company’s strong performance is driven by its e-commerce dominance, cloud services, and AI-driven innovations.

The company announced that they are creating 2 new AI language models which will compete with OpenAI and Google, and will be available via AWS allowing clients to build their own chatbots. They will also give access to an AI model called Stable Diffusion which is a tool that generates images.

At a glace we can see that these tech giants are all in the running to outperform their competitors in the world of AI and it’s anyone’s guess which of the above are going to be in the lead. It is however safe to assume that most likely all of the above will be successful in someway regarding AI given the effort they are putting into development. There are of course other AI related companies and stocks to look out for but those mentioned here have so far been making the most noise.