The stock market has been highly volatile lately. The movement has caused some investors to think about the stocks that they should invest in or add to their watch list. Today, we’ll talk about one of my personal favourites: artificial intelligence stocks that you should consider adding to your portfolio.
I’ll share with you six artificial intelligence stocks today. They range from low, medium, to high-risk stocks that you may want to consider investing in for the long term.
Microsoft
The first one on the list is Microsoft. The company owns the second-largest cloud platform, which is used in many AI applications. Its cloud platform even hosts the supercomputer, which was built in 2020. The tech giant is using its new supercomputer to develop AI models that are being used by other companies, developers, and organizations to serve their own purposes.
Microsoft is definitely among those companies that are experimenting with artificial intelligence. For those who didn’t know, Microsoft recently acquired Github, which is home to more than 11,000 AI repositories. Github has added a whopping 16 million developers in just a single year and it is on track to reach more than 100 million developers by 2025.
The Microsoft stock rarely dips because of its impeccable performance. It reported $170 billion in sales and $60 billion in profits in just one year. Its sales are also on track to grow by nearly 20% this year.
- At close = 289.86
- 52 Week Range = 227.13 – 349.67
- PE Ratio (TTM) = 30.87
- Market Cap = 2.204T
Alphabet
Another artificial intelligence stock you need to add to your portfolio is none other than Alphabet, also known as Google. It is a low-risk stock that is considered the world’s biggest data collecting company. It’s the most visited website, reaching up to 90 billion visits in just one month. Its search engine holds the lion’s share, which stands at about 92%. It makes more than 8.5 billion searches daily and 3 trillion annually.
Its Google Maps holds 70% of the market share when it comes to mapping and navigation. Gmail holds the biggest market share and around 50% of product searches are done on Google.
YouTube, which is another extremely popular platform across the world, is owned by Google. The videos in the platform get billions of views every day and online users watch billions of hours of video on a daily basis.
Google uses AI in most of their businesses including advertisements as well as their YouTube and search engine algorithms. Even Google’s healthcare subsidiaries, Calico and DeepMind, use artificial intelligence. Waymo, which is Google’s sibling company, given that it’s under the Alphabet umbrella, has made its name by becoming the first company that launched a fully driverless commercial taxi service.
- At close = 2,642.44
- 52 Week Range = 2,010.73 – 3,042.00
- PE Ratio (TTM) = 23.55
- Market Cap = 1.751T
Baidu
Another artificial intelligence stock that you should consider holding for the long term is Baidu. The Chinese company is considered high risk because the communist government usually interferes with companies operating in their country.
But despite that, the company is expected to grow about 18% this year. It’s the Chinese version of Google and it is also exploring the world of artificial intelligence.
Just like Google, Baidu is the most used search platform in China, where it holds 85% of the market share. Baidu holds the fourth largest cloud platform in China, next to Google, which ranks third.
In America, Google has an autonomous driving division called Waymo. In China, Baidu also has one and it’s called Apollo, which is China’s first Robo taxi. The stock is poised to perform well in the coming years and that’s why it’s worth adding to your portfolio.
- At close = 147.26
- 52 Week Range = 132.14 – 278.21
- PE Ratio (TTM) = 33.11
- Market Cap = 52.767B
Meta
Another artificial intelligence stock that’s worth considering is Meta. Its platforms, Facebook, WhatsApp, Instagram, and Oculus, dominate the social media market. These platforms have a combined user base of more than 3.5 billion.
Meta uses different kinds of AI-related technologies and algorithms to target, entertain, and market to its audience. As a matter of fact, the company has invested more than $20 billion a year in research and development.
So, when it comes to anything related to AI, you know for a fact that Meta will be there competing with other similar companies. Take, for example, the metaverse. The company has spent more than $10 billion to build the virtual world, which uses AI in different ways.
That’s where the risk comes from. Meta is expected to spend more than $50 billion in the coming years before metaverse can start generating profits. But with Meta’s massive balance sheet and financials, the company will manage to balance out its expenses.
- At close = 200.06
- 52 Week Range = 190.22 – 384.33
- PE Ratio (TTM) = 14.53
- Market Cap = 558.341B
NVIDIA
Regardless of what part of the AI market you look at, you’ll find an NVIDIA chip being used to power a system. Gaming, for instance, is one market where AI will play a major role and there’s no stopping it anytime soon.
NVIDIA GPUs are controlling more than 80% of the GPU market. Not only that, the world’s top 5000 smartest and fastest supercomputers in the world are powered by NVIDIA. That’s just one of the many things that make this stock amazing.
NVIDIA chips are also essential in data centers and global smart cities, which are expected to grow more than $2.4 trillion by 2025, marking a growth rate of 20% per year. NVIDIA chips will be used to process all of the data, which means they will continue to be in demand in the coming years. All these make the medium-risk stock an excellent addition to your portfolio.
- At close = 229.36
- 52 Week Range = 115.67 – 346.47
- PE Ratio (TTM) = 59.57
- Market Cap = 571.565B
Palantir Technologies
Palantir Technologies is a data analytics company that collects and processes a massive amount of data so users can make smarter and more efficient decisions.
The company recently signed an $800 million deal with the US government and the military. Palantir Technologies will replace the military’s old Combat Intelligence System with a new one that consists of different software and hardware for better visualization and understanding of threats as well as other aspects in the battlefield, etc.
Palantir uses AI to analyze the data that it collects and make tough decisions that humans aren’t capable of. Its financial sales are expected to grow by 30 to 40% annually while growth is anticipated to continue by at least 30% through 2025.
- At close = 10.96
- 52 Week Range = 9.74 – 29.29
- PE Ratio (TTM) = N/A
- Market Cap = 22.25B
So, that’s it for today. What do you think about my artificial intelligence stock picks for 2022? Do you have something else to add or stock to take out from the list? Let me know. Leave your comment below. I’d love to hear from you.
Don’t forget to hit the share button you can also signup to our newsletter for the latest updates. You can also check out my previous blogs such as “8 Investing Rules Warren Buffett Wants You to Know“. Hope you enjoyed today’s blog. Until next time. Have a great day!
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Recommended books for further reading:
- Smarter Investing: Simpler Decisions for Better Results
- How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology
- Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week
- Investing Demystified: How to create the best investment portfolio whatever your risk level
- The Five Rules Successful Stock Investing: Morningstar’s Guide to Building Wealth and Winning in the Market
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