12 Stocks That Will Benefit From AI

Published on August 9, 2023 at 6:31 am by Fatima Farooq in Hedge Funds, News

In this article, we will be taking a look at 12 stocks that will benefit from AI. To skip our detailed analysis of the artificial intelligence sector, you can go directly to see the 5 Stocks That Will Benefit From AI.

Market Slowdown In August

August has been off to a slow start for most stocks. On August 8, the S&P 500 healthcare sector was the only sector in the green, while 10 remaining sectors were all down – even tech. Healthcare was up by 6.08 basis points or 0.38%, while tech was down by 41.45 basis points or 1.36%. While some observers are seeing this slow market activity as a sign that the bull market many were welcoming did not even start, others believe the only reasons behind the downward trend in stocks this month are high valuations and summer seasonal issues.

At a time like this, most investors would be tempted to hold off on the buying spree and wait for stocks to settle down before they swoop in. However, buying up stellar stocks, most notably artificial intelligence-related or technology stocks, right now when they seem to be down may be a strategy worth considering. Companies that have been working tirelessly to keep up with their competitors in the artificial intelligence arms race are in the red today, but there’s no telling how long they’ll stay there. For instance, Alibaba Group Holding Limited (NYSE:BABA), Baidu, Inc. (NASDAQ:BIDU), and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) are three stocks that were down by 3.34%, 2.54%, and 0.41%, respectively, on August 8. These are companies that have been contributing to the artificial intelligence space this year, whether in the realm of generative AI or the provision of essential AI-related semiconductor chips, among more. Despite this, they are taking a beating alongside many other tech and AI stocks that analysts and investors are bullish on to this day.

Considering the way artificial intelligence has revolutionized the tech industry and the world, in general, this year, particularly with the advent of ChatGPT and other generative AI products, it’s far too soon to write off the companies that are working in this space. It’s likely that companies working with AI this year will profit immensely in the near future, which will ensure that their shareholders will profit just as much when the time to reap the benefits of their hard work finally rolls around. Considering this, we have compiled a list of such top stocks that will benefit from AI this year. They include some of the best AI stocks to buy now alongside other tech stocks that are introducing new AI products and services as part of their suite of products.

Our Methodology

We have selected companies that have been actively investing and innovating in the AI space this year and have mentioned their specific contributions to the sector below. The companies are ranked based on the number of hedge funds holding stakes in them, from the lowest to the highest number of hedge fund investors. We used Insider Monkey’s hedge fund data for the first quarter to rank them.

Stocks That Will Benefit From AI

12. C3.ai, Inc. (NYSE:AI)

Number of Hedge Fund Holders: 24

C3.ai, Inc. (NYSE:AI) is an application software company offering a platform that enables customers to design, develop, and deploy enterprise AI applications. It is based in Redwood City, California. As a pure-play AI company in the market, it is likely to benefit immensely from the AI boom.

As of July 24, Joe Goodwin, an analyst at JMP Securities, maintains an Outperform rating on shares of C3.ai, Inc. (NYSE:AI). He also raised the firm’s price target on the stock from $38 to $40.

At the end of the first quarter, 24 hedge funds held stakes in C3.ai, Inc. (NYSE:AI), with a total stake value of $151.9 million.

In its March 2023 investor letter, Kerrisdale Capital said the following about C3.ai, Inc. (NYSE:AI):

“We are short shares of C3.ai, Inc. (NYSE:AI), a $4 billion market capitalization enterprise software company that has risen from the ashes of its busted IPO based on the misconception that its self-proclaimed “AI leadership” somehow positions it to benefit from Silicon Valley’s current tech theme du jour: generative AI as represented by media obsession ChatGPT. We believe these speculative flames won’t burn bright much longer, as the realities of C3’s poor customer traction, failing sales partnerships, and financial pressures will catalyze what is likely to be a painful reality check.

This isn’t the first time C3 has sought to ride a hot investment theme. The company was originally founded as C3 Energy to develop analytics solutions for public utilities preparing for the emergence of cap-and-trade and smart grids. C3 pivoted in 2016, renaming the company C3 IoT to capitalize on that buzzy opportunity. But management’s master stroke was rebranding operations as C3.ai in 2019 and going public with the “AI” stock ticker, thus securing its place as the default artificial intelligence stock play for the undiscriminating investor despite the bulk of its business coming from relatively dated analytics models built for a very small number of utility, energy, and government customers. C3 is a minor, cash-burning consulting and services business masquerading as a software company, and its true value is a fraction of its current market capitalization…” (Click here to read the full text)

11. Baidu, Inc. (NASDAQ:BIDU)

Number of Hedge Fund Holders: 43

Broad Peak Investment Holdings was the most prominent shareholder in Baidu, Inc. (NASDAQ:BIDU) at the end of the first quarter, holding 425,000 shares in the company.

A Buy rating was reiterated on shares of Baidu, Inc. (NASDAQ:BIDU) on July 17 by analyst Lincoln Kong at Goldman Sachs. The analyst also raised the price target on the stock from $183 to $197.

Baidu, Inc. (NASDAQ:BIDU) is a communication services company based in Beijing, China. The company was the first big Chinese company to release a generative AI product, the Ernie Bot, as competition for ChatGPT.

We saw 43 hedge funds holding stakes in Baidu, Inc. (NASDAQ:BIDU) in the first quarter. Their total stake value in the company was $2.1 billion.

Tweedy, Browne said the following about Baidu, Inc. (NASDAQ:BIDU) in its first-quarter 2023 investor letter:

“Many, if not most, stocks held in the Funds’ portfolios performed quite well in the first quarter. This was particularly true for the Funds’ non-US equity holdings, many of which have come into their own over the last two quarters, despite years of underperformance versus their US counterparts – a welcome shift given that our Funds’ portfolios have been somewhat non-US-centric in terms of their portfolio allocations for well over a decade. The Funds also received a long overdue boost from their Chinese and Hong Kong-based holdings in the wake of China’s reopening and the government’s signaling of a relaxation of their interventionist policies. This included strong returns in Baidu, Inc. (NASDAQ:BIDU) among others.”

10. Micron Technology Inc. (NASDAQ:MU)

Chris Caso, an analyst at Wolfe Research, initiated coverage on Micron Technology Inc. (NASDAQ:MU) shares with an Outperform rating on July 20. The analyst also announced an $80 price target on the stock.

Micron Technology Inc. (NASDAQ:MU) is a semiconductor company based in Boise, Idaho. The company is one of three companies making DRAM and NAND flash memory chips, which are vital for artificial intelligence systems today.

There were 73 hedge funds long Micron Technology Inc. (NASDAQ:MU) in the first quarter. Their total stake value in the company was $2.7 billion.

Like Alibaba Group Holding Limited (NYSE:BABA), Baidu, Inc. (NASDAQ:BIDU), and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Micron Technology Inc. (NASDAQ:MU) is a stock that has much to gain from the AI boom this year.

9. Palo Alto Networks, Inc. (NYSE:PANW)

Number of Hedge Fund Holders: 87

Palo Alto Networks, Inc. (NYSE:PANW) was spotted in the 13F holdings of 87 hedge funds in the first quarter, with a total stake value of $3.9 billion.

Palo Alto Networks, Inc. (NYSE:PANW) is a systems software company providing cybersecurity solutions globally. It is based in Santa Clara, California. The company has been working on a proprietary AI model to be used for specific security use cases and is likely to benefit from the popularity of AI as it attempts to introduce this technology in its cybersecurity operations.

An Outperform rating was maintained on shares of Palo Alto Networks, Inc. (NYSE:PANW) by Matthew Hedberg, an analyst at RBC Capital, on August 7. The analyst also placed a price target of $250 on the stock.

Like Alibaba Group Holding Limited (NYSE:BABA), Baidu, Inc. (NASDAQ:BIDU), and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Palo Alto Networks, Inc. (NYSE:PANW) is a highly popular stock that can offer great returns with its AI operations.

8. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 99

Adobe Inc. (NASDAQ:ADBE) is an application software company based in San Jose, California. It is offering a family of generative AI products on its creative products under the name of Adobe Firefly.

Our hedge fund data for the first quarter shows 99 hedge funds long Adobe Inc. (NASDAQ:ADBE). Their total stake value in the company was $7.3 billion.

Morgan Stanley analyst Keith Weiss upgraded shares of Adobe Inc. (NASDAQ:ADBE) from Equal Weight to Overweight on July 31. The analyst also raised his price target on the stock from $510 to $660.

Bailard Inc was the largest shareholder in Adobe Inc. (NASDAQ:ADBE) at the end of the first quarter, holding 47,068 shares in the company.

Polen Capital mentioned Adobe Inc. (NASDAQ:ADBE) in its second-quarter 2023 investor letter:

“On a relative basis, based on total attribution, the top performers in the quarter were Amazon, Netflix, and Adobe Inc. (NASDAQ:ADBE). Adobe has had several cross-currents this year with slightly slower revenue growth, the announcement of a sizeable potential acquisition of Figma, and the introduction of generative AI functionality into many of its products. These issues seem to be a net positive, although we are cautious about the company’s ability to achieve regulatory approval for the Figma acquisition. Generative AI also poses some potential competitive challenges for Adobe, which we will describe in more detail later.”

7. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Number of Hedge Fund Holders: 102

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) was seen in the portfolios of 102 hedge funds in the first quarter, with a total stake value of $8.9 billion.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is another semiconductor company on our list. It is based in Hsinchu City, Taiwan. The company is expected to benefit from a rising demand for its chips amid the generative AI boom.

Charles Shi, an analyst at Needham, maintains a Buy rating on shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) as of July 21. The analyst also placed a price target of $115 on the stock.

6. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 128

Holding about 1.9 million shares in the company, Segantii Capital was the most prominent shareholder in Alibaba Group Holding Limited (NYSE:BABA) at the end of the first quarter.

An Outperform rating was reiterated on shares of Alibaba Group Holding Limited (NYSE:BABA) on July 17 by Colin Sebastian, an analyst at Baird. The analyst also maintained a price target of $115 on the stock.

Alibaba Group Holding Limited (NYSE:BABA) is a company providing tech infrastructure and marketing reach to help merchants, brands, retailers, and more in engaging with their customers. The company is based in Hangzhou, China. It has also launched its own generative AI tool, Tongyi Wanxiang, to stay in the AI race.

In the first quarter, 128 hedge funds were long Alibaba Group Holding Limited (NYSE:BABA). Their total stake value in the company was $5.9 billion.

Click to continue reading and see the 5 Stocks That Will Benefit From AI.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on May 1, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

Published on May 2, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up