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Artificial intelligence is undoubtedly one of the most fascinating technologies in the world today as this cutting edge innovation has many different uses, whether it be through machine learning to make businesses more efficient or through the use of AI to improve the world’s finances in building autonomous vehicles Using this disruptive technology, it’s pretty obvious that AI use cases span the length and breadth of almost any industry. The global AI market is forecast to grow at an average annual growth rate of 40.2% from 2021 to 2028 which means it is hard not to be on board companies involved in the introduction of this fascinating technology. As more companies choose to implement AI and the global pandemic is fueling growth in the industry market with long-term trends, putting company stocks at the forefront of AI could really pay off in the years to come.
That is why we have compiled a list of 3 AI stocks you can buy right now to help investors make the right decisions as they add exposure to this high potential area of the tech sector. Let’s take a closer look below.
Amazon (NASDAQ: AMZN)
You are likely already familiar with Amazon’s ecommerce business, which has transformed the way people shop and created countless opportunities for third-party providers to generate income. uses machine learning to improve customer experience, optimize your logistics speed, and even provide product recommendations by predicting the context of your customers’ search queries. Amazon also allows other businesses to take advantage of cutting-edge IT infrastructure and AI with Amazon Web Services (AWS), a fast-growing part of the company, whose revenue is in the second quarter compared to last year grew 37% to $ 14.81 billion. Even the company’s physical products like Amazon Echo Dot and Alexa devices use artificial intelligence, as Alexa now uses acoustic event detection and has the ability to detect certain sounds like a baby’s crying to automatically reproduce white noise. Based on analysts’ consensus target price estimates, the stock is currently over 20% ahead, which is another reason the stock is proving to be a solid way to get into this fascinating technology.
Upstart Holdings (NASDAQ: UPST)
This company provides the perfect example of how artificial intelligence technology has the potential to revolutionize almost any industry. Upstart Holdings has developed a cloud-based artificial intelligence lending platform that streamlines the entire consumer credit process for both lending and loan servicing. From this company’s platform, consider the fact that four out of five Americans have never defaulted on a loan product, but less than half have access to great credit. Upstart could change that statistic by abandoning simple FICO-based approval models to improve consumer access to banks and institutional lenders – they can get approved for a loan and get their money. Banks and institutional lenders are attracted to the company’s AI platform as it reduces the risks and costs of lending for them, while consumers love how quickly they can get approved for a loan and receive their cash. The company’s system is constantly learning and optimizing in response to the daily loan-level defaults and repayments data, meaning their accuracy continues to improve over time, stocks were a monster according to the company’s second-quarter earnings report, which saw Upstart exceed $ 194 million in revenue year round, and it’s definitely an artificial intelligence company to add to your shopping list. Keep an eye on the stock during the seasonally weak in September due to possible buying opportunities.
Tesla (NASDAQ: TSLA)
It’s safe to say that one of the most fascinating uses for AI technology is in the automotive industry, and it is probably only a matter of time before fully autonomous vehicles are ubiquitous on New York’s highways and streets. Tesla is at the forefront of this movement, as the electric vehicle company is developing and deploying autonomy on a large scale in vehicles, robots, and more. A big advocate for artificial intelligence, CEO Elon Musk recently hosted a promotional event for Tesla AI Day to discuss some of the unique ways the company is looking for the algorithm behind the company’s autonomous driving system. This could be the key to perfecting autonomous vehicle technology and is certainly an interesting upgrade. Of course, acquiring Tesla shares also means going for renewable energies and owning one of the fastest growing electric vehicles. This is another reason to add stocks to your portfolio.