The Future of Artificial Intelligence is NOW
Dear Penny Stock Millionaire,
Artificial intelligence (AI) is becoming more and more a part of our lives … so is it smart to invest in or trade artificial intelligence stocks?
The U.S. economy is evolving at an unprecedented pace as next-generation technology disrupts the large corporations that once dominated industries. Companies that fail to innovate disappear, and companies like the FANG group step in to replace them.
Unlike the tech stocks from the dot-com bubble crash, these stocks have plenty of room to expand and continue to innovate.
One area several companies are heavily investing in is AI.
AI doesn’t always have the best reputation because pop culture movies often portray it as the enemy. Let me assure you… in its current stages, artificial intelligence can’t take over the world.
But, yeah, these companies can make for smart trades — if you do your research. Here’s what to watch for in 2020…
Artificial Intelligence Stocks’ Performances in 2019
What’s driving this impressive growth?
Over the last decade, a lot of companies, both big and small, started to integrate software into their business. Automation is huge. And intelligent analysis of consumer data helps increase the efficiency of corporations — sometimes exponentially.
These productive technologies are made possible by advancements in artificial intelligence.
In 2019, we saw cheaper artificial intelligence solutions enter the marketplace. The reduced cost meant more companies could use the technology to improve their processes.
Many of the companies working on AI are only beginning to explore its possibilities. So these companies might be starting a bull run.
What to Expect From Artificial Intelligence Stocks in 2020
I think 2019 was only the beginning of a massive AI revolution. That was the first year we saw companies of all sizes implement it on a massive scale.
Before 2019, AI solutions were primitive and not always helpful to consumers. But tech companies worked to improved AI. They developed applications that can use it to improve businesses and ultimately serve other humans.
In 2020, it’s likely that more companies will adopt AI-powered tools, and that can mean even more growth in this industry. The impressive gains and growth of many tech stocks can reflect that. And it’s likely we’ll see more in the coming years.
I’ll be the first to warn you: AI stocks can be risky. They don’t move slowly like blue-chip stocks.
Best Artificial Intelligence Stocks to Watch in 2020
Not all artificial intelligence companies are equal. Companies tend to work on different versions of AI and target different sectors.
Investing in this technology can be difficult — few publicly traded companies solely focus on AI. The industry is still in its early stages, and as it cements itself into the economy, more companies will become publicly tradable.
Here are a few artificial intelligence stocks that I’m watching in 2020…
NVIDIA (NASDAQ: NVDA)
Overall, NVIDIA is my favorite AI stock for 2020. Currently, NVIDIA is the leading supplier of graphics cards for computer gaming and AI systems. Its chips specialize in the deep-learning category of AI. That’s key to the entire artificial intelligence process.
Other companies have used NVIDIA chips to analyze large sets of data to train their models. These systems analyze old data to find patterns that can be applied to new data as it enters the system.
Overall, NVIDIA is a well-positioned company. Many of the other companies on this list use NVIDIA graphics cards.
Salesforce (NYSE: CRM)
Salesforce is an impressive growth story on its own, but it’s venture into AI could pad the company for steady growth for years to come.
Salesforce developed its Einstein tools to improve sales forecasts for companies using the platform. Einstein analyzes a company’s historical account data to predict which deals are most likely to close.
The system isn’t perfect, but you can imagine the immense benefits the Einstein tools can have for businesses of all sizes? If a company knows one deal has a better chance of closing than another, they can more efficiently allocate their resources to maximize profitability.
Microsoft (NASDAQ: MFST)
Microsoft has dominated the business world since its inception. It was one of the few tech stocks to survive the dot-com crash and continues to expand its operations every year.
Recently, Microsoft closed a deal to acquire Canadian AI company Maluuba. Microsoft CEO Satya Nadella stated he wants to bring AI to more industries such as healthcare, education, and manufacturing.
Given Microsoft’s domination of the computer market, the company’s entrance into this industry shouldn’t be taken lightly.
Alphabet (NASDAQ: GOOGL)
Like Microsoft, Alphabet (Google’s parent company) started its AI endeavors by acquiring smaller, nonpublic AI companies. And so far, Alphabet’s acquired more of these companies than any other tech firm.
Google’s CEO has stated on multiple occasions that Google’s future is “AI first.” In other words, Google is deploying all its resources to become a dominant force in the market.
It could be very beneficial for Google and Alphabet. Just imagine how AI could dramatically improve its search engines. And Alphabet owns several companies in the automated driving space, which could benefit massively from breakthroughs in artificial intelligence.
Alphabet has a lot of potential applications here.
The Bottom Line
AI has a ton of growth potential. Companies that are pursuing it and investing in R&D are prime targets to watch.
Do a little research and be on the lookout for information about AI and companies that are investing in it in the future.
Tomorrow, I’ll go over a few more big names that you should know, and a few penny stock companies that you should put on your watch list.
Editor, Penny Stock Millionaires