As tech stocks continue to recover from this week’s losses, investors may be looking towards Artificial Intelligence (AI) stocks. Why? In short, this section of the stock market could be under the microscope thanks to a recent market research note. According to ResearchAndMarkets.com, the global AI in health care market could grow to a mind-blowing $107.79 billion by 2027. To put things into perspective, this segment of the AI industry was valued at about $3.9 billion back in 2019. In theory, this would represent a compound annual growth rate of about 49.8% from 2020 to 2027. With AI boasting this much potential, I could see investors looking for the best AI stocks to buy in the stock market today.
For starters, AI companies such as Veeva (NYSE: VEEV) are already helping some of the top medical organizations in the world. Namely, Veeva helps healthcare giants optimize their operations across the board via AI and cloud-computing tech. Just this week, Veeva revealed that it is working with 6 of the top 20 global pharmaceutical companies. Furthermore, cybersecurity firms like Palo Alto Networks (NYSE: PANW) heavily rely on AI to bolster their services. These are but two instances where AI plays a key role in evolving industries. Generally, as systems get more complex over time, the need for AI would increase as well, regardless of industry. With that in mind, here are four top AI stocks worth looking at in the stock market now.Best Artificial Intelligence Stocks To Watch
- Amazon.com Inc. (NASDAQ: AMZN)
- Nvidia Corporation (NASDAQ: NVDA)
- IBM Corporation (NYSE: IBM)
- Apple Inc. (NASDAQ: AAPL)
Amazon is a multinational tech company that is based in Seattle, Washington. The tech giant focuses on e-commerce, cloud computing, and digital streaming and is often referred to as one of the most influential companies in the world. Also, it has recently made huge strides into the AI sector as well. Specifically, it does this through its Amazon Web Services (AWS) and provides machine learning services and supporting cloud infrastructure to clients. AMZN stock currently trades at $3,192.22 as of 10:07 a.m. ET.Source: TD Ameritrade TOS
Late last month, the company announced its first-quarter financials for 2021. In it, Amazon reported that net sales increased by 44% year-over-year to $108.5 billion. Net income for the quarter increased to $8.1 billion, or $15.79 per diluted share. AWS in particular saw significant customer momentum, with new commitments and migrations from customers spanning many major industries.
In detail, AWS has become a $54 billion annual sales run rate business in competing against the world’s largest technology companies. It also enjoyed a 32% growth year-over-year. For these reasons, will you consider adding AMZN stock to your watchlist?Nvidia Corporation
Nvidia is an AI company that is at the forefront of the industry. As companies are increasingly data-driven, the demand for AI technology grows. From speech recognition and recommender systems to medical imaging and improved supply chain management, Nvidia is providing companies with the necessary tools for today’s economy. NVDA stock currently trades at $556.85 as of 10:16 a.m. ET and has been up by over 65% in the last year.Source: TD Ameritrade TOS
Earlier this month, the company released a blog post on integrating AI into retail with Walmart’s (NYSE: WMT) Grant Gelvin. The post highlights the growing importance of AI on improving everything from customer experience to stocking and item pricing. Gelvin’s most recent project has been a dynamic pricing system, which reduces excess food waste by pricing perishable goods at a cost to ensure that they will be sold.
In February, Nvidia announced its fourth quarter and fiscal 2021 results as well. It reported a record quarterly and full-year revenue for the company and its Gaming and Data Center segments. Quarterly revenue was $5 billion, a 61% increase year-over-year. Full-year revenue was a whopping $16.68 billion, up by 53% year-over-year. With so many exciting things happening to Nvidia, will you be on the lookout for NVDA stock?
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IBM is a multinational artificial intelligence company that is headquartered in New York. It has operations in over 170 countries. The company’s AI platform is called Watson and is powered by the latest innovations in machine learning. Watson is an open, multi-cloud platform that automates the AI lifecycle. It can help customers increase productivity, improve customer service, and also enhance financial services. IBM stock currently trades at $144.56 as of 10:16 a.m. ET.Source: TD Ameritrade TOS
In April, the company announced its first-quarter financials for 2021. Firstly, the company posted a revenue of $17.7 billion for the quarter. A chunk of this revenue came from its cloud segment, at $6.5 billion is up by 21% year-over-year. IBM also ended the quarter with $11.3 billion of cash on hand and reduced its debt by $5.1 billion since the end of 2020.
“Strong performance this quarter in cloud, driven by increasing client adoption of our hybrid cloud platform, and growth in software and consulting enabled us to get off to a solid start for the year,” said Arvind Krishna, IBM chairman, and chief executive officer. “While we have more work to do, we are confident we can achieve full-year revenue growth and meet our adjusted free cash flow target in 2021.” For these reasons, will you consider watching IBM stock?Apple Inc.
Another top name in the field now would be Apple. Now, although most would not immediately think of AI when looking at Apple, the tech giant employs it regularly, nonetheless. In fact, the company is actively using AI tech to improve user experiences in several ways. Some notable applications include facial recognition, native sleep tracking, app suggestions, and even handwriting recognition. The likes of which are found across all of Apple’s flagship consumer electronic devices. By and large, this would give investors another reason to be watching AAPL stock right now.Source: TD Ameritrade TOS
While all this is great, Apple still finds ways to broaden and refine its AI endeavors. Last week, the company reportedly hired former Google (NASDAQ: GOOGL) AI scientist, Samy Bengio. According to Reuters, Bengio would likely be leading a new AI research unit at Apple.
If anything, this play would synergize well with the company’s recent $430 billion investment plans involving AI research. Despite not being a pure-play AI investment, Apple appears to be doubling down on AI research regardless. Could this make AAPL stock a top AI stock now?