Stocks in Artificial Intelligence: The Top 10 AI Firms

AI stock purchases may be significant long-term holdings.
Robotics, automation, and artificial intelligence are disrupting almost every business. The debut of OpenAI’s ChatGPT chatbot and enhanced public access to OpenAI’s DALL-E 2 AI picture and art generator in 2022 gave the world a personal glimpse at the astonishing advancements in AI technology. Companies that don’t invest in AI-related goods and services risk becoming outdated in various industries, including machine learning, intelligent apps and devices, digital assistants, and autonomous cars. Numerous businesses stand to gain from AI, but just a few equities have automation and AI as their primary offerings. Here are the top 10 AI equities recommended by Bank of America.

1. Windows Corporation (ticker: MSFT)

As part of a collaboration that makes Microsoft Azure OpenAI’s sole cloud provider, software behemoth Microsoft committed $1 billion to OpenAI in 2019; in a report published by Semafor on January 9, Microsoft is anticipated to make an extra $10 billion investment. The business is well-positioned to earn $1 billion in revenue by 2024 thanks to the recent success of ChatGPT, DALL-E 2, and other OpenAI technologies. Microsoft will reportedly earn 75% of OpenAI’s income up until it recoups its investment, at which point it will acquire a 49% interest in the company. Microsoft also intends to provide a ChatGPT-powered AI version of its Bing web browser by the end of 2023, and it is expected to use OpenAI technologies across the board. According to analyst Brad Sills, Microsoft will continue to achieve double-digit revenue and profit for at least the next three years. The MSFT stock, which ended on January 10 at $228.85, has a “buy” rating and a $300 price target from Bank of America.

2. Google Inc

In practically every element of its business, such as Gmail spam filters, content promotions, and ad pricing, Alphabet, the parent company of Google and YouTube, uses AI. In addition, it is the parent company of the autonomous car manufacturer Waymo and the AI software company DeepMind, which made history in 2020 when it became the first completely driverless commercial taxi service to run on public roads.. In a challenging economic situation, analyst Justin Post thinks Alphabet is a growing company with an appealing value that makes for a great defensive buy. GOOGL stock, which closed on January 10 at $88.42, has a “buy” rating and a $114 price target from Bank of America.

3. Amazon Inc (AMZN)

Amazon has incorporated AI into every area of its operations, including its cloud computing division Amazon Web Services, targeted advertising, and e-commerce search engines. One of the business’s most well-known virtual assistants, Alexa, is now present in many American homes. Additionally, Amazon offers various AI services to users of the cloud, such as chatbots, sophisticated text analytics, and automatic code reviews. Amazon launched Sparrow, a new warehouse robotic arm, in November. Sparrow utilizes AI and computer vision to move items of varying sizes before being boxed. According to Post, Amazon’s recent round of layoffs is not a good indication for the company, but cost-cutting initiatives could assist in boosting investor confidence. The AMZN stock, which ended on January 10 at $89.87, has a “buy” recommendation and a $137 price target from Bank of America.

4. Nvidia Corp (NVDA)

High-end chip manufacturer Nvidia Corp. (NVDA) supplies the enormous processing power required to operate sophisticated AI applications. The 6,080 A100 Nvidia graphics processing processors and Quantum InfiniBand networking technology are already included in the world’s giant AI supercomputer built by Facebook parent firm Meta Platforms Inc. (META). Due to security concerns, the U.S. gvt. has blocked sales of Nvidia’s newest H100 and A100 AI processors to China and Russia. To improve Oracle Corp.’s (ORCL) cloud capabilities for AI, Nvidia said in October that it is expanding its cooperation with the firm to cover tens of thousands of processors. According to analyst Vivek Arya, Nvidia’s AI technology pipeline will assist in mitigating a challenging macroeconomic situation in 2023. The NVDA stock, which ended on January 10 at $159.09, has a “buy” rating and a $215 price target from Bank of America.

5. International Business Machines Corp (IBM)

For years, IBM has been working on methods to transform academics, banking and law, along with health care, using its AI supercomputer Watson. Unfortunately, IBM sold up its healthcare analytics and data assets in early 2022 after its Watson-powered genomics and cancer efforts failed to live up to expectations. Nevertheless, IBM intends to spend $20 billion in New York over the next ten years on developing and producing semiconductors, mainframe computers, and technologies for quantum and AI computing. The rebound in IBM’s sales growth, according to analyst Wamsi Mohan, will continue, and the business also has solid defensive portfolios and an attractive 4.7% dividend. The IBM stock, which ended at $144.80 on January 10, has a “buy” rating and a $145 price target from Bank of America.

6. Intuitive Surgical Inc (ISRG)

The da Vinci surgical system, which Intuitive Surgical offers, uses cutting-edge robotics and digital imaging technologies to carry out minimally invasive procedures. Intuitive is attempting to use big data and AI to create solutions like improved training modalities and real-time advice for surgeons. Even though the da Vinci system has been on the market for 22 years, Intuitive reported a third-quarter increase in installed systems of 13% year over year. According to analyst Travis Steed, Intuitive Surgical is among the best-positioned medical technology companies and has possibilities for margin increase in the coming years. The ISRG stock, which ended January 10 trading at $271.36, has a “buy” recommendation from Bank of America and a $300 price objective.

7. Workday Inc (WDAY)

Workday is a supplier of cloud-based applications with a human resources management focus. With Workday’s unique AI-based optimization engine, businesses can handle hiring and staffing difficulties, shifting labor demand, change scheduling and prioritizing, and more. Espressive’s AI-based Virtual Support Agent Barista was incorporated into Workday’s platform in April 2022. The software offers solutions to HR-related queries from workers. According to Sills, Workday should continue to produce considerable operating leverage, at least through 2024. According to Sills, a potent combination likely to provide long-term value to shareholders is a margin increase and sales growth of more than 20%. WDAY stock, which closed on January 10 at $160.21, has a “buy” rating and a $200 price target from Bank of America.

8. Palantir Technologies Inc (PLTR)

Data analytics software provider Palantir Technologies uses AI. Palantir was ranked as the top AI software platform globally by market share and revenue by IDC in September 2022. The U.S. government’s intelligence and defense sectors account for a sizable portion of Palantir’s business, and the company recently signed a new $85.1 million with the U.S. Army Materiel Command to assist in the deployment of AI and machine learning software to enhance equipment reliability, predictive maintenance, and supply chain optimisation. Despite a 64.7% decline in share price in 2022, analyst Mariana Perez Mora claims that Palantir will still be among the largest long-term gainers from adopting private and public AI platforms. The PLTR stock, which ended on January 10 at $6.70, has a “buy” rating and a $14 price target from Bank of America.

9. Dynatrace Inc (DT)

Dynatrace Inc. (DT) The enterprise’s Davis AI engine, which analyses 368 billion dependencies every second, can quickly identify issues in a company’s digital environment, offer context for what went wrong, and identify and rank probable economic implications. Forrester has recognised Dynatrace as an industry leader in AI for IT operations. According to analyst Koji Ikeda, Dynatrace offers a distinct AI-based system that will be challenging for rivals to imitate. He forecasts a 20.8% increase in sales for the fiscal year 2023. The DT stock, which ended on January 10 at $36.69, has a “buy” rating and a $45 price target from Bank of America.

10. UiPath Inc (PATH)

UiPath Inc. (PATH) UiPath creates automated robotic process technology that enables businesses to increase productivity and cut expenses by automating time-consuming and repetitive tasks. With the use of UiPath’s AI technology, computer programs can now read papers and emails, evaluate language and visuals, and comprehend the substance and meaning of conversations. According to Sills, UiPath’s vast installed base of more than 12,000 clients and its unique computer vision technology will help it continue to increase its market share in process automation. PATH stock, which ended on January 10 at $12.75, has a “buy” rating from Bank of America with a $16 price objective.