Looking to Make the Most of AI Boom? Buy These 4 Solid Stocks

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Amazon.com, Inc. AMZN on Jun 16 said that it has developed a new Artificial Intelligence (AI) system that will help in maintaining social distancing among workers in its warehouses. The company plans to share the undergoing technology free of cost. Over the past couple of decades, AI has gained significantly […]

Amazon.com, Inc. AMZN on Jun 16 said that it has developed a new Artificial Intelligence (AI) system that will help in maintaining social distancing among workers in its warehouses. The company plans to share the undergoing technology free of cost.

Over the past couple of decades, AI has gained significantly and contributed to the robust growth in the tech sector. Today an increasing number of companies are banking on AI to better their products and services. The past couple of months have been all the more crucial for AI, which saw exponential growth as an increasing number of people resorted to technology following the coronavirus outbreak.

Amazon Takes Help of AI

Called Distant Assistant, the technology helps in combining a TV screen, depth sensors, and AI-enabled camera to track employees’ movements and give them feedback in real time. If workers come closer than six feet of one another, circles around their feet will start flashing red on the TV, indicating that they should move apart for safe distance. The devices are self-contained, which means they can be deployed quickly where needed and moved about.

The first Distance Assistant systems have already been set up in some Amazon offices, and the company plans to deploy hundreds of such devices over the next few weeks to help employees maintain social distance at workplace. Distance Assistant also builds off Amazon’s work with computer vision, using the concept to power its Amazon Go stores.

AI Poised to Grow

Today, nearly 40% businesses use AI to run their daily course. According to a latest report by Data Bridge, the global AI market accounted for $16.14 billion in 2017 and is projected to witness a CAGR of 37.3% and reach over $116.4 billion by 2025. Further, the United States will maintain a 41% growth momentum.

The AI field holds secure development prospects, inferable from which, the key players are concentrating on building an incorporated arrangement including equipment and programming. Moreover, to grow their client base, a few merchants have teamed up with wholesalers and end clients for item appropriation. 

Stocks to Benefit

The report once again proves the myth wrong that AI is replacing human workforce. Instead, AI collaborates with workforce and in the process saves considerable amount of time and effort by offering a smart and useful tool for better judgment.

Embracing the opportunity, tech giants are spending dollars to cater to the needs of AI software, focusing on finding patterns and to make inferences from large quantities of data. From mitigating individual requirement to catering to business needs, this AI boom will be boosting three segments of the bigger tech space, AI chips, cloud computing and smart home devices.

NVIDIA Corporation NVDA makes chips that power heavy computational and memory requirements of AI, and generally generates revenues from gaming GPUs. The company has made AI advancements in other markets that include upscaling 1080p videos to 4K resolutions with deep learning and providing AI services for 5G networks and IoT. 

The company’s expected earnings growth rate for the current year is 36.4%. The Zacks Consensus Estimate for current-year earnings has improved 3.8% over the past 60 days.  The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Zoom Video Communications, Inc.ZM has been benefiting from the work-from-home and online learning wave following the coronavirus pandemic outbreak that forced more and more people to stay home. Zoom uses AI to schedule video meetings and for a host of other things such as organizing attendee details and transcripting details.

The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 181% over the past 60 days.  The company sports a Zacks Rank #1.

Netflix, Inc. NFLX uses AI to give its users a personalized experience. With personalization becoming a prerequisite, tech companies are using AI to sell products and services to millions of customers. Though voice-activated smart home devices trended in the past decade, the usage of smart tech has been reshaped by many others. Netflix uses AI to personalize Internet TV content for its subscribers.

The company’s expected earnings growth rate for the current year is 55%. The Zacks Consensus Estimate for current-year earnings has improved 6.3% over the past 60 days. Netflix carries a Zacks Rank #2.

Micron Technology, Inc.MU last year announced a powerful new set of high-performance hardware and software tools for deep-learning applications with the acquisition of FWDNXT, a software and hardware startup. When combined with advanced Micron memory, FWDNXT’s AI hardware and software technology enables the firm to explore deep-learning solutions required for data analytics, particularly in IoT and edge computing. 

Micron’s shares have jumped 14.9% in the past month. The Zacks Consensus Estimate for current-year earnings has improved 15.3% over the past 30 days. Micron holds a Zacks Rank #2.

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it’s predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce “the world’s first trillionaires,” but that should still leave plenty of money for regular investors who make the right trades early.

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