ascending
January 30, 2024
No Comments
Invest in Artificial intelligence Stocks
Almost every aspect of our lives is affected by artificial intelligence, from how we find information online, to how our products are delivered, to photo apps, to facial recognition, and on and on. It is now an exciting time to invest in AI as companies worldwide are seeking to capitalize on this technical revolution and create innovative products and services.
How to invest in Artificial Intelligence?
It is important to note that there are many ways in which one can invest in AI. This is some kind of catch, but there is still no clear declaration that identifies the company as an AI company, so there’s still a bit of a misnomer. If we use Phillip Morris as an example, everyone will understand that Phillip Morris is a tobacco company, Google is a search engine, and Snap is a social media platform.
So, why do you have to invest in AI stocks?
First and foremost, A.I. stocks may be an excellent investment over the long term.
There is a disruption in nearly every industry due to artificial intelligence, automation, and robotics. With the launch of OpenAI’s ChatGPT chatbot in 2022 and the expansion of public access to OpenAI’s DALL-E 2 AI image and art generator, the world received a firsthand look at remarkable advances in AI technology.
Even so, here are the industries employing substantive AI today.
Using AI, companies can enhance their existing operations, such as through robotics, self-driving cars, and virtual assistants. In addition to filtering spam, Google, a subsidiary of Alphabet, uses AI to recommend products to its customers, while Netflix uses AI for guiding content creation and Amazon uses AI to recommend products to users.
ChatGPT quickly gained a wide reputation with its detailed responses and articulate answers across many domains of knowledge. ChatGPT (Chat Generative Pre-trained Transformer) is an open-source chatbot created by OpenAI on November 30th, 2022. The system is based on OpenAI’s GPT-3 family of large language models, and it is fine-tuned (an approach to transfer learning) to incorporate both supervised and reinforcement learning techniques.
Is OpenAI a public company? Open AI is privately owned, but Microsoft owns a significant stake. There was a $1 billion investment by Microsoft in 2019 and they were granted exclusive rights to use GPT-3.
Microsoft invested $1 billion in OpenAI as part of a partnership making Microsoft Azure OpenAI’s exclusive cloud provider. OpenAI is the company behind the sensational ChatGPT. According to a report released on January 9, 2023, by Semafor, Microsoft plans to invest another $10 billion into the project.
Microsoft will also receive 75% of OpenAI’s profits until it makes back its investment, after which it will gain a 49% stake in the firm.
A chatGPT-powered AI version of Microsoft’s Bing search engine is also planned by the end of March 2023, and OpenAI technology is likely to be incorporated throughout all aspects of its business.
In virtually every aspect of its business, Alphabet, the parent company of Google and YouTube, uses artificial intelligence and automation. The use of Artificial Intelligence by Google had been implemented for quite some time as by using the AI approach, people are able to do things more easily, whether it’s searching for photos of loved ones, ad pricing, content recommendation, spam filters, Google Translate, Google Map to be on the go or utilizing the Google Assistant to get things done.
Furthermore, it owns AI software subsidiary DeepMind and autonomous vehicle pioneer Waymo, which 2020 launched the world’s first fully driverless commercial taxi service.
Google Ai is called LaMDA (Language Model for Dialogue Applications), first appeared in 2021 at Google’s developer conference. The advanced AI system is supposed to help build other, smaller chatbots. Google AI appears as an open library of AI resources for anyone to begin learning, building, and problem-solving.
According to Justin Post, Alphabet is an excellent defensive investment in a tough economic environment because it is a growth stock with a reasonable valuation.
Amazon has integrated AI into every aspect of its business, which includes redesigning supply and analyzing data, automating customer demand prediction, optimizing delivery routes, and personalizing customer communication all at the same time. Furthermore, Amazon uses AI in its targeted advertisements, e-commerce search algorithms, and Amazon Web Services, its cloud computing service.
Amazon’s star player, Alexa! It is one of the most popular virtual assistants and has already been installed in many American homes. AWS cloud customers can also take advantage of advanced text analytics, automated code reviews, and chatbots provided by Amazon. In addition to Alexa, ‘Sparrow’, Amazon’s new warehouse robotic arm uses artificial intelligence and computer vision to move various product sizes that can aid in packaging and speed up customers’ journeys.
Factually speaking, the implementation of AI such as Sparrow might lead to Amazon’s recent wave of layoffs. It is certainly not a positive signal for business but it is definitely a cost-cutting measure that could help improve investor sentiment.
BuzzFeed used AI to ‘enhance’ its content and quizzes. According to a report published on Buzzfeed’s website on January 26, 2023. The Platform will also use technology from ChatGPT’s artificial intelligence firm, Open AI, to lead AI-powered content and maximize the creativity of BuzzFeed’s writers, producers, and creators and our business
“In 2023, you’ll see AI-inspired content move from an R&D stage to part of our core business, enhancing the quiz experience, informing our brainstorming, and personalizing our content for our audience,” said Jonah Paretti, BuzzFeed’s founder, and CEO.
BuzzFeed’s share fell sharply all last year, and into this past January and then bounced with a massive jump after the announcement that BuzzFeed will work with OpenAI. The idea of integrating AI into BuzzFeed’s content is both risky and innovative, and the news sent BZFD shares skyrocketing.
The possible integration of AI into BuzzFeed’s content creation does bring a promise of reduced costs and stronger margins, which can support the company’s moderate revenue growth.
Intuitive Surgical Inc. (ISRG)
Intuitive Surgical Inc working to enhance its AI technology and is moving towards the completion of general repetitive tasks being completed wholly with AI. Intuitive is working to integrate big data and AI to build tools such as real-time guidance for surgeons and enhanced training modalities.
Intuitive Surgical is best known for its successful “da Vinci” robotic surgical system which costs $2 million. The robotic system employs advanced robotics and computerized visualization technology to perform minimally invasive surgeries.
It’s been 22 years since the FDA approved the da Vinci system, but Intuitive reported a 13% year-over-year increase in installed systems.
Expect an AI-surgeon partnership, not robot surgery
A miniature robot developed by them focuses entirely on MIS, enabling microscopic surgical procedures. Currently, surgeons control the device from a console away from the patient and can complete a variety of complex operations. AI, however, can help the company collect and curate data to improve patient outcomes.
Intuitive Surgical is a top-positioned medical technology stock with margin expansion opportunities in the near future, according to analyst Travis Steed.
Resource: AI-based Surgical Robots Global Market Report 2022
Nvidia Corp (NVDA)
NVidia is the world’s leading producer of graphics processors for PCs, and its technologies are being applied to several AI fields, including high-performance computing and virtual reality.
Nvidia can provide the massive processing power needed to run advanced AI applications such as ChatGPT, which requires immense computing power to process intricate computing tasks.
Nvidia partnership with Meta and Oracle.
In partnership with Nvidia, Facebook’s parent company Meta Platforms Inc. (META) is building the world’s largest AI supercomputer, which is already equipped with 6,080 Nvidia A100 graphics processors and Quantum InfiniBand networking technologies. In October 2022, Nvidia announced that it would expand its partnership with Oracle Corp. to include tens of thousands of chips to boost Oracle’s AI cloud capabilities.
Nvidia’s new AI chips H100 & A100 are characterized by their high level of power, and as a result, the US government recently announced that the chips could not be sold to China or Russia due to their high power.
Despite a challenging macroeconomic climate in 2023, Nvidia’s AI development pipeline can help mitigate its negative effects of it.
Dynatrace Inc. (DT)
Founded in 2006, Dynatrace is a company that monitors and observes cloud computing infrastructure.
What is Dynatrace AI?
Dynatrace automatically detects all dependencies. Dynatrace detects anomalies automatically using smart auto-basing and predictive analytics, and AI determines whether they are affecting customers. Dynatrace diagnoses problems that are often difficult to pinpoint, including database, memory, threading, and CPU issues.
Davis AI, the Dynatrace AI engine analyzes 368 billion dependencies per second, detecting problems instantly, providing context about what went wrong, and determining and prioritizing potential impacts on a company’s business.
Forrester recently named Dynatrace a market leader in AI for IT operations. Dynatrace has a unique AI-based platform that will be difficult for competitors to match.
In a nutshell, Dynatrace detects problems so that abnormalities can be reported and alerted, enterprise cloud operations can be modernized and automated, the software can be released more quickly, and the customer experience can be optimized.
Palantir Technologies Inc. (PLTR)
Palantir Technologies company develops AI-based data analytics software.
Using Palantir Edge AI, Palantir orchestrates and fuses sensor data across disconnected, remote endpoints. In this way, on-hardware models can make autonomous decisions over the real-time sensor, radio, acoustic, geo-registration, and time series data using a real-time sensor, radio, and acoustic data.
Palantir’s initial partnership with the research lab enabled the company to integrate, manage, and deploy training for data and AI models for US military and foreign operators. According to analyst Mariana Perez Mora, the company has long benefited from AI platforms deployed by commercial and government agencies
In September 2022, IDC named Palantir the No. 1 AI software platform in the world by both revenue and market share. As a leading data analytics company, Palantir has software being used in more than 50 different industries today and its software is helping to drive decisions in some of the most complex data environments around the world, including manufacturing, health sciences, finance, and government.
Mobileye Global Inc (MBLY)
With world-renowned artificial intelligence expertise, Mobileye lead the evolution of automobility from advanced driver assistance systems to autonomous driving. Plus, it also has autonomous driving space and supplies its technologies to a wide array of automakers.
Mobileye used to be the company that provided the technology for Tesla’s early Autopilot before Tesla decide to build its own system.
Mobileye’s ADAS-based computer vision capabilities are used by 50 automotive OEMs across 800 car models. Mobileye expects to lead in autonomous vehicles (without a driver in certain weather and climatic conditions) based on Intel’s silicon photonics platform, which is capable of 3D imaging and LiDAR.
It is safe to say that Mobileye will dominate the autonomous vehicle landscape in the coming years.
C3.ai
In contrast to the tech giants and chip makers on the list above, whose businesses include artificial intelligence, C3.ai is only focused on artificial intelligence. Considering its ticker and name, C3.ai may be the closest stock on the market to a pure-play AI stock.
Using C3.AI’s software, companies can deploy large AI applications. A variety of applications are possible with the company’s tools, which are designed to help customers accelerate software development and reduce costs and risks.
The stock has seen a sharp spike after its dropped in September, and has nearly doubled in price since January 5. As a result of the company’s new product suite, C3 Generate AI, a data retrieval and presentation tool based on natural language, the company enjoyed stronger gains. Additionally, C3 announced at the end of January that ChatGPT will be integrated into its product line.
C3 AI Readiness, for instance, helps the US Air Force identify spare parts, predict aircraft system failures, and improve mission capability.
Bottom Line
There is no denying the fact that artificial intelligence has become a part of our daily lives, whether we like it or not. Nonetheless, AI implementation in businesses serves as a long-term prospect as the technology develops along with it in the near future. It will be a good long-term investment to consider in your portfolio.
The key-takeaways/market update is a series by AxeHedge, which serves as an initiative to bring compact and informative In/Visible Talks recaps/takeaways on leading brands and investment events happening around the globe.
Do keep an eye out for our posts by subscribing to our channel and social media.
None of the material above or on our website is to be construed as a solicitation, recommendation or offer to buy or sell any security, financial product or instrument. Investors should carefully consider if the security and/or product is suitable for them in view of their entire investment portfolio. All investing involves risks, including the possible loss of money invested, and past performance does not guarantee future performance
ascending
January 25, 2024
No Comments
Beginner
January 18, 2024
No Comments