10 Best Artificial Intelligence & Machine Learning Stocks To Buy In 2019

AI and ML stocks are also one of the hot properties to invest in share market now. With growing influence through the applicability of emerging technologies like AI and ML in varied sectors and industries around the world.

One of the major reasons why AI and ML stocks are picking up among the stockholder circles is because of the multiple advantages it offers. Be it autonomous driving or smart electronic gadgets, there have been more ups than downs in the AI sector overall.

With artificial intelligence being declared as the future of tech industry, we list top 10 AI and ML-based stocks to buy in 2019. These companies are not listed in any particular order.

5 Major Companies To Invest In –

1| ALPHABET

Market Value – $812.0 billion

Listed on NASDAQ: AAPL                                                           

Reasons To Invest –

• One of the most direct ways Alphabet uses machine learning right now is through the company’s self-driving vehicle company Waymo and the machine learning software that’s driving the vehicles is second to none.

The company’s machine learning systems have been able to improve Waymo’s cars drive because they’ve been fed lots of data from the  10 million miles they’ve driven on the road and the 7 billion virtual distance in miles they’ve driven through augmented scenarios.

• Alphabet, Google’s parent company’s stocks will not skyrocket like a smaller company would if its AI investments are about to pay off.
• It is a company which is perhaps a few years away from being valued at $1 trillion valuations, and uses AI as a driving force behind everything, from search results to ad pricing and autonomous driving technology.

So, investing in its stocks can prove beneficial.

2| AMAZON

Market Value – $177.866 billion

Listed on NASDAQ: AMZ

Reasons To Invest –  

•  Amazon CEO Jeff Bezos has been the driving force behind the company’s meteoric rise.
• Machine learning already is in use in core parts in  Amazon-like product search rankings, recommendations, demand forecasting, fraud protection and warehouse fulfilment, and AI is also central to Alexa virtual assistant and future for drone delivery and cashier-less grocery stores.
• According to Bezos, the most apparent machine learning use comes in the form of figuring out where and how items will be on the Amazon website for users to see, and which products Amazon recommends to its users.
• Amazon is also looking at machine learning to help drive its fast-growing advertising business. They are also in the process of utilising machine learning and analytical techniques to create solutions across the company’s business which includes its ad-serving pipeline.

Also, Amazon is developing data and analytics tools for brands, backed by machine learning and its ubiquitous web services, so that it can use the tech to find relevant data for ad targeting and measure ad success. 

3|  NVIDIA

Market Value – $9.714 billion

Listed on NASDAQ: NVDA

Reasons To Invest –

• Chipmaker NVIDIA Corporation defines AI and ML technology as the practice of using algorithms to parse data, learn from it and then decide or predict about something in the world.
• NVIDIA’s graphics processing units are used by all the major technology companies to help their servers implement machine learning services.
• But the company has also used its GPUs to build semi-autonomous driving technology.
• Its Drive PX Pegasus system allows vehicles to see and process the images captured by onboard cameras so that the vehicles can correctly navigate their surroundings.
• Its Pegasus is already being used by more than 25 companies to develop fully autonomous robotaxis that can drive themselves.

NVIDIA believes that autonomous vehicles represent a $60 billion total addressable market for the company by 2035. But, 2019 will bound to be a crucial year for the market which will likely ramp up over the coming years.

4|  IBM

Market Value – $ 79.139 billion

Listed on NYSE: IBM      

Reasons To Invest –

• AI is not new to IBM. The company has been developing this type of technology since its inception. IBM developed its AI computer called Deep Blue in 1985 itself far ahead of other.
• IBM created Watson to take on the best players on the quiz show Jeopardy where the computer eventually won.
• Investing in  IBM  with a focus on its AI and other cutting-edge technologies can make a big difference. IBM’s strategic imperatives include cloud computing, security, analytics, big data and mobile generated $39 billion or about 48% of total revenues. All these technologies have been the primal force in improving the growth rate of overall businesses too.

IBM stock also has promising dividends, which is pegged at 4.1%. This is one of the highest in the tech industry. The valuation is reasonable as the forward price-to-earnings ratio is the only 11X.

5|  Microsoft (MSFT)

Market Value – $771.0 billion

Listed on NASDAQ: MSFT   

Reasons To Invest  –

• Microsoft Corporation acquired Canadian AI company Maluuba this year.
• This Canadian company teaches machines to think and ask questions through deep learning methods. It’s known for using AI to beat the notoriously difficult Ms Pac-Man arcade video game.
• According to Microsoft CEO Satya Nadella, the MNC is in the process to “democratize AI” and bring the technology to more industries such as healthcare, education and manufacturing.
• MSFT has pivoted to become a cloud-centric company, jockeying with Amazon and Google for AI breakthroughs.
• Microsoft’s major focus is also on talent in artificial intelligence research, where it’s developing cloud-based tools for genomics and precision medicine, human language technologies, assistive robotics, machines that can read medical images and much, much more.

With consumer-facing services like Cortana as well, Microsoft is one of the best artificial intelligence stocks to buy for the coming years.

5 Lesser Known Companies To Invest In 2019 –

6| YEXT

Market Value – $170.2 million

Listed on NYSE: YEXT                                                                  

Reasons To Invest  –

• Yext being the top company is providing data provider, with integrations of over 150 services with help of AI from operators Google, Apple Amazon.com Microsoft, Facebook and Tencent.
• Yext also uses context and intent to its work which allows for more accurate real-time searches.
• According to its CEO Howard Lerman, the world is moving to smart databases and AI-powered services is the future.
• Growth has been strong for Yext. In the previous quarter, revenues shot up by 35% to $55.1 million.

The company has also been getting more attraction from enterprise customers.

7  | BAIDU            

Market Value – CNY 84.809 billion

Listed on NASDAQ: BIDU                                                            

Reasons To Invest –

• When it comes to the search business, Baidu is arguably the most advanced AI company in China.
• But BAIDU has also invested heavily in becoming an artificial intelligence stock. This has helped with personalizing the search experience as well as improving the impact of online ads.
• The company has created several platforms for third parties like Apollo.
• It is an AI system for autonomous vehicles. BAIDU is hoping that its Apollo technology will eventually power most of the world’s cars, while other projects like virtual assistants and voice replication are already coming along.
• The AI efforts have been paying off. In the latest quarter, revenues jumped by 32% to $3.93 billion and the adjusted EBITDA came to $1.12 billion — or about 29% of total revenues. BIDU also has a highly scalable business model.

BAIDU stock has taken a hit this year, going from $273  to $218 in 2018. But for investors looking for a play on AI in China, Baidu stock does look attractive at these levels.

8  |Delphi Automotive /APTIV

Market Value – US$ 12.9 billion

Listed on NYSE: DLPH / APTV

Reasons To Invest  –

• Delphi Automotive PLC (NYSE: DLPH) is on the rise. Delphi grew by 30% in previous years and is predicting revenue of $16.5 billion to 16.9 billion for the full year 2019.
• Delphi  also left its powertrain business to focus on self-driving cars and electric vehicles
• With BMW, Intel Corporation and Mobileye NV, Delphi plans to launch self-driving cars by 2021.

DLPH received four buy ratings and one hold rating recently, which has nearly 70.30% upside potential for the next 12 months.

9 | Salesforce.com

Market Value – $100.4 billion

Listed on NYSE: CRM                                               

Reasons To Invest-

• Cloud computing giant Salesforce.com offers customer relationship management to over nearly 100,000 customers
• But the company has been focusing on  AI and made big leaps through the launch of Einstein Analytics
• According to CRM, Einstein Analytics apps can automatically analyse billions of data combinations to surface predictive insights and prescriptive recommendations.
• Monness Crespi analyst Brian White pointed out that on the AI front, Einstein is providing nearly 2 billion predictions each day and double the 1 billion in 4QFY18 after CRM’s first-quarter earnings in 2018.

In 2018, Salesforce announced two big partnerships one with IBM’s powerful AI platform Watson and the other with Amazon Connect.

10 | BioXcel Therapeutics

Market Value – $139.1 million

Listed on BTAI (NASDAQ)                                                           

Reasons To Invest-

• While most of AI attention is focused on tech stocks, AI also has the potential to drive huge change when it comes to the world of healthcare and drug development.
• One top-rated biotech stock making the most of these new opportunities is BioXcel Therapeutics.
• BioXcel uses AI to pinpoint prospective neuroscience and immunooncology drugs.

Through AI, BioXcel will source promising failed or discontinued drug candidates which it will apply to the treatment of multiple different diseases to make minute modifications to things such as the dosing pattern and all.

Other Valuable AI AND ML Stocks to Invest In –

• Tencent (TCEHY)

China’s biggest social media company, Tencent, the company behind the WeChat app, recently built a Seattle-based AI research lab headed by a two-decade veteran of Microsoft Research.

• Intel Corp. (INTC)

While Nvidia is possibly the best example to be considered as full-on AI stock, Intel, the quintessential blue-chip semiconductor company, has taken notice of the enormous growth potential.

• Micron Technology (MU)

Micron’s speciality is memory chips along with Samsung and SK Hynix, it controls about 80 per cent of the global market. The company is investing heavily in Machine learning which will drive great change in fields like autonomous driving, the IoT and industries like health care and finance.

• Twilio (TWLO)

Most readers probably haven’t heard of Twilio and it’s no coincidence TWLO may have the greatest risk/reward of the top AI companies as a result. At $3.8 billion, the cloud software business is overvalued and or shares may multiply over 8 times in the next five years.

Facebook & Netflix are also good stocks to invest in as both the companies are heavily investing in AI  & ML, but how the markets respond is yet to be seen.

1. Of course, we have listed top valuable stocks for AI and ML stock investors. But, there is no guarantee that these companies will for sure see skyrocketing share prices in 2019.
2. The major reasons why we have mentioned these stocks here because these companies have invested heavily in machine learning and are keeping a long-term perspective in mind to gain from it.
3. Investors who take a similar approach to AI and ML stocks keeping in view the long-term prospects will likely be rewarded as they wait for the market to grow to see significant returns.

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