You snooze, you lose! Don’t miss out on investments of the future.
The fourth industrial revolution has already begun. Machine learning and Artificial Intelligence are dominating every industry of the world that you think about. Gone are the days when the world ran on fossil fuels like coal and oil. IPCC in its recent report has declared a code red for humanity with only a few decades left to reverse impending doomsday due to climate change. This makes the future of conventional energy bleaker on Wall Street. Scientists and researchers are rushing to develop technologies that save the world and guess what, AI and Machine Learning are going to be the biggest mobilizer in the same direction.
Needless to say, it is time to shut out your counter-intuitive investment choices that are as redundant as harmful (both for the world and your portfolio).
This is just one out of plenty of reasons why AI stocks should be on top of your buy list today and tomorrow.
You snooze, you lose. And while no one wants to have the worms, we still know what the phrase ‘early bird catches the worm’ implies.
Artificial Intelligence is no longer a figment of science fiction and has become a phenomenon in today’s world. The AI industry is globally valued at $43.1 billion for the year 2020 and is predicted to be read the magic figure of $228.3 billion by 2026, undoubtedly giving an incentive to investors around the world to splurge their wealth.
Having said that, here are the 10 most profitable AI stocks to invest in 2021 that will become your treasure trunk in the time to come.
10 Most Profitable AI Stocks For Visionary Investors To Invest In 2021
#10 Micron (NASDAQ: MU)
This U.S.-based tech giant produces data storage products for electronic devices which are used by millions around the world. Micron SSD cards are known to be the cheapest and the most efficient memory storage units in the world. Having a market cap of over $83 billion as of Sept 6, 2021, Micron is considered to be a pioneer in its space and recorded over $6 billion in gross profit in the trailing twelve months.
Analysts and experts believe that the company is undervalued at the current point and is expected to gain almost $53.7 billion in 2021. A good enough reason to proudly buy Micron.
Company’s revenue for the last quarter spiked by 19% and 36% year over year.
#9 IBM (NYSE: IBM)
Yet another American tech giant, IBM has been on the scene pretty much since the inception of the technological revolution. IBM makes use of AI to augment human intelligence and reduce its operational costs. With $125 billion in market cap and $36.5 billion in revenues for six months ending June 30, 2021, the tech mogul is constantly plowing back profits in its high growth channels like bid data, cloud computing, and the likes.
The PE Ratios of the company for the trailing twelve months stand at 23.51.
The company is expected to grow at the rate of 16.35% per annum over the next five years with the current year growth estimates at 24.20%.
#8 Twilio (NYSE: TWLO)
Dubbed as one of the best AI stocks to invest in 2021, this $65 billion company manufactures cloud-based APIs which help developers build features like voice and video attributes into their applications. Twilio is one stock on this list that is suited for the adventurous investor as it has been quite volatile over the past few years.
The second quarter of 2021 was a roller coaster ride for the company, ending with $668.9 million in revenues- a whopping 67% growth year-over-year. The future of cloud computing is as bright as one can imagine. This, along with the impressive financial momentum of the company is a reason that investors can consider it for their portfolio.
However, one should know the fact that Twillio’s shares are currently trading for 24 times revenue for the trailing-12 months. The valuation of the company is largely the result of the market’s assumption that the brand will keep growing at the same exponential speed.
A highly volatile stock for the brave hearts!
#7 Tencent (HKG: 0700)
This Chinese tech conglomerate has gained quite a social presence over the past few years mainly through its disrupting online multiplayer video game called PUBG.
Tencent made headlines on Wednesday after releasing its Q2 earnings for the year 2021. The company recorded a 20% increase in revenue year-over-year- $21.3 billion. While the number matched the predictions of the analyst but it couldn’t match its own growth rate of 25% in Q1.
One of the major reasons you should consider buying this stock is its gaming outreach. Tencent owns stakes in game publishers like Activision Blizzard, Ubisoft, and Fortnite. To be more clear, the company’s gaming ventures recorded 12% year-over-year growth in Q2, amounting to 31% of its total performance.
Tencent holds the title of emerging as China’s first-ever tech firm valued at over $500 billion. WeChat is yet another one of Tencent’s hot favorite applications which are heavily augmented with AI and ML. It is also bent upon distributing its AI solutions to China’s agriculture, healthcare, and manufacturing sectors making it one of the most potent stocks.
Its advertising arm is yet another strong reason to buy, given the fact that the ad revenue of the company rose by 23% year over year, superseding 13% growth during the pandemic. Another arm- Fintech and Business Service Unit- also registered a 40% year-over-year increase in the quarter.
Tencent is undoubtedly a promising buy for investors except for one thing- China’s tech crackdown. China’s State Administration for Market Regulation (SAMR) has already issued multiple small fines on the company.
#6 Alphabet (NASDAQ: GOOGL)
When you think tech, Alphabet (Google’s parent company) is the first name that comes in the mind and it is with this stature that it has been able to single-handedly outperform any other players in the market. Having been inducted into the trillion-dollar club, Alphabet has proven its fondness for AI by employing some of the world’s best AI personnel.
Alphabet stock performed substantially well even during the course of the pandemic, gaining the trust of its stakeholders. And with a market cap of $1.92 trillion and a PE ratio of 29.82, a retail investor can expect a sure-shot return in the long run.
The company is expected to grow by 24.41% per annum for the next 5 years with the current year predictions at 72.50%.
The company has already begun its ambitious Google AI project to introduce new products, tools and domains to organize the world’s information and make it accessible to people around the globe.
#5 Salesforce (NYSE: CRM)
Salesforce is a SaaS company and also a leading provider of a suite of applications.
The company registered a 23% increase year over year in Q2 of 2021 at $5.96 billion which is a head-turning figure for Salesforce. “We had the best first quarter in our company’s history,” said Marc Benioff, Chair & CEO, Salesforce.
This impressive figure was accompanied by 76% year-over-year growth in its operating cash flow which stood at $3.2 billion in Q1 2021. The free cash flow likewise increased by 99% to $3.1 billion.
Another major accelerator in the company’s growth is its plans to acquire Slack in the coming quarter. The deal is set to be closed for $27.7 billion.
Being a core AI processing firm, Salesforce has projected huge upside for its investors and bags the fifth spot on our list.
#4 Amazon (NASDAQ: AMZN)
Well to the surprise of no one, Amazon has found its way on the list of top AI stocks to invest in 2021. The world’s leading E-Commerce giant is also the leading cloud computing space, dominating the maximum share of the industry. AWS or Amazon Web Services is Amazon’s cloud computing platform and excels in providing machine learning services.
Investors’ favorite growth stock, Amazon’s profits are on as wild pace as they have been in the last few years. With a market cap of $1.76 trillion, anyone would hardly disagree with the fact that Amazon is always going to be a good buy. But what are the company’s future plans for AI and ML?
World’s biggest e-commerce company plans to deploy computers and bots to perform decision-making and customer needs prediction for it. Warehouse bots and machine learning codes are soon to revolutionize not only your shopping experience but also the cloud computing industry, once and for all.
#3 Adobe (NASDAQ: ADBE)
Famous for producing the best-in-class applications for illustrations, graphics, multimedia, and the likes, Adobe has now turned its attention to the AI and ML space. Adobe Sensei is its pioneer tool that makes use of AI to enhance user satisfaction across its product ranges.
The tech mogul hit an all-time high in its Q2 2021 earnings after it registered a 23% year-over-year increase in its revenue to $3.84 billion. Adding to its list of exceptional performance this quarter, its adjusted net income per share surpassed the predicted $0.21 a share to $3.03 a share.
Virtual reality, voice recognition, machine learning, chatbots, facial recognition, biometrics, are some of the few technologies among many that Adobe is planning to introduce in its creative ecosystem.
Plenty of reasons why Adobe makes it to the list of 10 best AI stocks to invest in in 2021.
#2 NVIDIA (NASDAQ: NVDA)
Leading graphics chip firm, NVIDIA, has been one of the first movers in the boom of AI and ML space establishing a de facto standard for its products in the market. It has recently made public its interest in self-driving cars– another emerging market with immense AI potential. NVIDIA develops platforms that will empower certain key self-driving assistance features.
The company boasts $569 billion in market cap with $7.9 billion in operating cash flow and $4.63 billion in free cash flow. The per annum growth for the next five years of the company has been expected at 30.80% while the current year predictions are 58%.
As self-driving cars would require huge amounts of data to be processed, NVIDIA will provide solutions for the same, managing data from multiple sources.
#1 Microsoft (NASDAQ: MSFT)
The holy grail of all tech companies, Microsoft, is a no-brainer for those looking to invest in AI stocks and has rightly found its way as the best tech stock out there. Being one of the most valuable companies in the world, Microsoft quite obviously invests heavily in Artificial Intelligence. Azure, Microsoft’s cloud computing service is home to several AI-driven applications. Its investments in companies like OpenAI will only further strengthen its position as it looks to cement its position in the markets as one of the top AI companies in the world.
The company registered 19% growth year over year in Q3 2021 at $41.7 billion. The overall market cap of the company stands at a whopping $2.29 trillion with a PE ratio of 37.87.