7 Tech Companies to Watch in 2020

Dear Penny Stock Millionaire,

Yesterday, I gave you several FANG stocks that are on my watchlist, with a specific focus on AI.

Today, I’m going to continue that train of thought with a few more large cap companies and then a few of the smaller companies that I focus on in my trading.

Let’s jump right into it!

Apple (NASDAQ: AAPL)

Apple is the largest company in the world by market capitalization. The corporation has grown rapidly this decade, and CEO Tim Cook continues to invest heavily in research and development.

Apple’s focus on AI has been primarily for its consumer devices — the goal is to enhance the user experience. Most of its new devices have special chips to power the complicated AI engine.

To date, the company has sold over one billion iPhones … That means Apple has the potential to put AI into the hands of over one billion people. That can have a worldwide impact.

Facebook (NASDAQ: FB)

For the last two years, the media scrutinized Facebook for multiple scandals. Even so, the stock is near all-time highs. The company is a cash-flow machine, and there are no signs that its ad revenue will slow down.

Adding AI to FB’s algorithm could increase profitability. That could help to better target ads and entice companies to spend more money on advertisements. Plus it could be a means to entice users to stay on the platform longer through customized content for each user.

Baidu Inc (BIDU)

Baidu is commonly called the ‘Google of China.’ Both companies have similar business models and help consumers navigate the internet. Similar to Alphabet, BIDU is heavily investing in AI because of the technology’s ability to improve its search engine.

Unlike the U.S., China has a more competitive search engine market, and Baidu believes AI can give its search engine a competitive advantage.

Delphi Automotive (DLPH)

Delphi is more speculative than the other stocks on my watchlist. The company is smaller and not as well established as the FANG stocks.

The company is based out of the U.K. and focuses on automotive technology like self-driving cars.

Currently, Delphi is working with BMW and Intel (NASDAQ: INTC) to launch self-driving cars by 2021.

Artificial Intelligence Stocks Under $10 You Should Watch

It’s good to see what’s going on at the upper end of the market. That’s where the big money is. But that doesn’t mean there aren’t smaller companies looking to leverage AI in their operations.

As artificial intelligence continues to grow, and more corporations use it in their daily operations, more companies will flood into the industry. Having an understanding of the overall picture can help you be a smarter, self-sufficient trader.

These companies are less established than the ones listed above but have explosive growth potential — if this industry takes off.

Cloudera, Inc (NYSE: CLDR)

I know … technically, CLDR is now over $10.

But at the beginning of December 2019, it was still under $10 so I’m adding it to my list.

Cloudera provides data analytics and management products to countries all over the world. Its signature product, Cloudera Enterprise Data Hub, allows companies to run analytical queries on private cloud data centers. CLDR’s tools use AI to enhance its analytics and aid companies with operations.

Cheetah Mobile Inc (NYSE: CMCM)

Cheetah Mobile is in the competitive telecommunication industry that’s dominated by Verizon (NYSE: VZ) and AT&T (NYSE: T).

The company is vying for a competitive edge in the mobile internet segment of this market. The Cheetah Keyboard uses AI to personalize the smartphone experience and increase user satisfaction.

Although the company faces fierce competition in the U.S., other countries around the world have less competitive telecommunication markets.

eGain Corporation (NASDAQ: EGAN)

eGain is a U.S.-based software-as-a-service company. The company provides a cloud software solution to automate customer engagement using AI-powered analytics and machine learning.

EGAN provides custom solutions to allow companies to reduce expenses and increase profits by analyzing consumer data. EGAN had an impressive run early in 2019 but leveled off the rest of the year.

Conclusion — Will You Watch AI Stocks in 2020?

Artificial intelligence is a complicated industry that’s only just started to be useful in the economy. Businesses around the world can apply AI to their supply chain and process to improve efficiency.

2019 was a great start to the AI revolution, but the technology is only in its infant stages. It’s still expensive, and there are always issues with new technology.

But the unlimited potential of AI can shape the global economy for generations. 2020 stands to be a big year for this sector.

Regards,

Tim Sykes
Editor, Penny Stock Millionaires

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Timothy Sykes

Tim Sykes is the editor of Tim Sykes’ Weekly Fortunes, a bi-weekly penny stock trader.

He also writes the free daily e-letter, Tim Sykes’ Penny Stock Millionaires

Tim’s most famous for turning the $12,415 dollars he received at his Bar Mitzvah into more than $1.65 million dollars in trading profits by college graduation.

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