3 Best Artificial Intelligence Stocks to Buy in 2019
Artificial Intelligence (AI) is leading the way into the next big wave in technology innovation and is garnering a lot of attention from the investment community. There is a lot of excitement of what is possible but also a lot of concern as to how the use of this technology will affect the economy and everyday life.
According to Oxford dictionary Artificial intelligence is “The theory and development of computer systems able to perform tasks normally requiring human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages.” Researchers are predicting that by 2029 robots will have reached human levels of intelligence and many prominent leaders are sounding the alarm.
Stephen Hawking notes that::“it’s likely to be either the best or worst thing ever to happen to humanity, so there’s huge value in getting it right”. Elon Musk believes it’s highly likely that artificial intelligence (AI) will be a threat to people. The Tesla founder is concerned that a handful of major companies will end up in control of AI systems with “extreme” levels of power.
According to PWC Artificial intelligence will contribute $15.7 trillion to the global economy by 2030 and of this, $6.6 trillion is likely to come from increased productivity and $9.1 trillion is likely to come from consumption-side effects.
Source PWC Report: Exploiting the AI Revolution
The Smart Money Gains technology research team has identified 3 stocks that will benefit most from this fast growing market in order to help investors capture some sizable profits.
Nvidia is a leading designer of graphics chips that enhance the experience on computing platforms. The firm’s chips are used in a variety of end markets, including high-end PCs for gaming, data centers, and automotive systems.
The company is capitalizing on the growth of the $54.23 billion ( 2019 ) autonomous vehicle market that is expected to be worth $127 billion by 2027. The company has created what is known as the Drive PX Pegasus witch is a series of computers aimed at providing autonomous car and driver assistance functionality powered by deep learning. This product starts shipping this year and Nvidia already has orders form 25 automakers and tech companies.
Nvidia’s has a 3 year EPS growth rate of 10.82% as well as a 3 year revenue growth rate of 22.7% and is one of the best AI stocks to buy right now.
Alphabet ( NASDAQ: GOOGL )
It may come as no surprise that number two on our list is Alphabet. The tech behemoth is on track to expand it’s AI revenue this year and solidify the company as the world leader in this space. Here is a list of their most notable Artificial Intelligence Projects:
Waymo is an automotive tech firm that already has driven four million miles without a driver and is projected to own 60 percent of the global self-driving taxi market by 2030.
Google Brain is a deep learning project attempting to have computers reach intelligence similar or equal to human-level.
Google Now, an intelligent personal assistant with a voice interface for Android and IOS, as well as Google Chrome web browser on personal computers.
Google’s home the company’s AI assistant is generating significant revenues in this space and is set to lead in what is known to be the fastest-growing consumer technology market on the planet.
This stock is a safe long term bet as the company still brings in more than 80% of its sales from advertising and has a 3 year projected EPS growth rate of 20.56%.
Aptivi has developed what is called the Centralized Sensing Localization Planning platform (CSLP) relies on predetermined rules for driving actions that use AI. This is essentially the rules an autonomous car follows and this technology is quite unique as it uses input from Radar that isn’t impacted by weather. The company is partnered with Lyft and currently the largest fleet of commercially operated self-driving vehicles on the road today.
Aptiv is a spin off from Delphi Technologies a world leader in fuel injection, valvetrain systems, sensors and software controls for the automotive sector with customers including Hyundai, Daimler, GM, BMW, VW and Peugeot. Analysts are expecting a 13.45% company growth rate and have a 2019 price target of $95.62 representing an upside of 53%.
Artificial intelligence is a mega trend and these 3 stocks are well positioned to reward investors with significant returns. These companies are deeply invested in developing this technology and offer long term opportunities for 2019 and beyond.