Artificial Intelligence Stocks: The 10 Best AI Companies

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FEBRUARY 7, 2024 Invested Advice, rankings and stock market news for investors.

Good morning, investors. Markets finish slightly higher as some impressive earnings offset cautionary Fedspeak. Highlights of today's newsletter include our market insights plus these new articles: Artificial Intelligence Stocks: The 10 Best AI Companies Should You Buy Palantir (PLTR) Stock? ETF vs. Index Fund: The Difference and Which to Use 11 of the Best Investing Books for Beginners TODAY'S FEATURED STOCK STORY Artificial Intelligence Stocks: The 10 Best AI Companies Artificial intelligence, automation and robotics are changing nearly every industry. In 2023, the world got a firsthand look at remarkable advances in AI technology from OpenAI, Microsoft and Google. Whether it be machine learning, large language models, smart applications and appliances, digital assistants, synthetic media software or autonomous vehicles, companies that aren't investing in AI products and services risk becoming obsolete. Countless companies stand to benefit from AI, but a handful of stocks have AI and automation as a central part of their businesses. Here are 10 of the best AI stocks to buy, according to Argus Research: Microsoft Corp. (ticker: MSFT). After announcing a $1 billion investment in OpenAI in 2019, Microsoft reportedly upped its stake in OpenAI to 49% in January 2023 and integrated ChatGPT into its Bing search engine shortly thereafter. In September 2023, Microsoft announced that it would integrate its AI copilots into a single AI experience called Microsoft Copilot. OpenAI has reportedly made impressive breakthroughs with its new AI model, called Q*. Analyst Joseph Bonner says the recent dispute at OpenAI between CEO Sam Altman and the board of directors will not have a meaningful financial impact on Microsoft. Argus has a "buy" rating and $430 price target for MSFT, which closed at $370.87 on Jan. 2. Alphabet Inc. (GOOG, GOOGL). Google and YouTube parent company Alphabet uses AI and automation in virtually every facet of its business, from ad pricing to content promotion to Gmail spam filters. Google launched its Bard AI chatbot in March 2023. In September, the company integrated Bard into its full suite of tools, including YouTube, Google Drive and Google Flights. In December, Google announced Gemini, calling it "the most capable and general model" the company has ever made. Bonner says Google is a market leader in emerging technologies such as AI, virtual and augmented reality, and quantum computing. Argus has a "buy" rating and $153 price target for GOOGL stock, which closed at $138.17 on Jan. 2. Click here to continue reading.   STOCK IMPLIED UPSIDE OVER FEB. 5 CLOSE Microsoft Corp. (ticker: MSFT) 17.1% Alphabet Inc. (GOOG, GOOGL) 18.3% Amazon.com Inc. (AMZN) 8.6% Nvidia Corp. (NVDA) -13.5% Meta Platforms Inc. (META) 19.7% Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) 9.4% Adobe Inc. (ADBE) 7.1% ASML Holding NV (ASML) 11.3% International Business Machines Corp. (IBM) 22.7% Arista Networks Inc. (ANET) 0.7%