Explore the top 5 AI-focused stocks and start investing on eToro
Not investment advice.
We are in the midst of an AI storm and it touches everything around us. From private users to the biggest companies out there - we’re all going to be affected by the AI revolution.
Just like the iPhone’s launch in 2007, which changed everything, we’re facing a pivotal point in time. Here are the top 5 AI stocks you should definitely keep an eye out for:
Tech giant Microsoft is known for staying on the cutting edge, which gives extra weight to CEO Satya Nadella’s description of AI as the “defining technology of our times.”
Cash is flowing: Strong fundamentals mean that the company has the cash to support AI research and development. Microsoft’s AI research team now has more than 5,000 computer scientists and engineers on its payroll.
Show me the monetization: Microsoft already has an extensive range of existing products and services at the ready for incorporating - and more importantly, monetizing - AI technology.
Prized partnership: Microsoft’s multibillion-dollar investment in OpenAI, the company behind ChatGPT, ensured that Azure would be the exclusive cloud provider for developers integrating OpenAI technologies into their applications and created Bing ChatGPT’s default search engine.
Past performance is not an indication of future results.
Best known as the parent company to leading search engine Google, tech giant Alphabet is part of a multinational conglomerate created in 2015 following Google’s restructuring.
Early adopter: Alphabet, a self-described “AI-first” company since 2018 (when it became one of the first companies to adopt AI best practices) produced the most AI-orientated start-ups between 2009 and 2020.
Incredible reach: Similar to Microsoft, Alphabet is well-positioned to leverage AI’s potential through existing products and services, as a global leader of digital content, advertising, cloud computing, and apps interacting directly with the end user.
Vested interest: Alphabet’s 2022 earnings showed some divisions of the company under financial pressure — which essentially means that there is no room for losing bets. The fact that Alphabet has a lot riding on AI, says much about its confidence in the technology.
AI is powered by semiconductor chips - and NVIDIA is currently the largest chipmaker for AI technology, having already solidified its position as the leading chip designer for the gaming industry.
Solid fundamentals: Despite recent challenges in the chip sector, NVIDIA’s 2023 top-line earnings remained strong, and higher than analysts expected.
Springboard to expansion: Graphics chips still make up 59% of NVIDIA’s revenues, with the company now leveraging its technical know-how to expand into the AI sector.
EV advantage: Thanks to NVIDIA’s experience with graphics processing units (GPUs) for gaming, it has a technological head start in the booming electric and autonomous vehicles markets.
Semiconductor equipment manufacturer ASML is a good example of a company not directly focused on AI, but still leveraging the technology to boost business and attract investors.
Market monopoly: ASML is set to be a dominant player in supplying the components for the world’s semiconductor manufacturers in the long term. They have a monopoly on the technology needed to make smaller, more efficient chips.
Keeping competition away: AI algorithms help ASML’s designers to create more efficient and powerful chips, reduce time-to-market and improve product performance - this ensures that their leadership status is solidified.
Time is money: ASML is using AI to optimise its manufacturing processes, reduce downtime and increase overall system efficiency, resulting in greater profitability potential.
With growing concerns globally over online security and data protection, cybersecurity is in higher demand than ever. Check Point, a leader in cybersecurity, is integrating AI into its threat prevention systems.
Fighting cyber with cyber: Where the sheer volume and increasing complexity of cyberattacks make it impossible for man-made models to provide protection, Check Point is successfully using AI to create effective security solutions.
Need for speed: AI can speed through the data, making threat detection and responses to cyberattacks faster, thus, reducing the damage that attackers can do.
Automating tasks: By delegating certain tasks such as data collection and analysis to AI, Check Point is able to optimise its human resources.
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