In this article, we will take a look at the 5 best AI stocks for 2022. If you want our detailed analysis of these stocks, go directly to the 10 Best AI Stocks for 2022.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 83
Graphics chip giant NVIDIA Corporation (NASDAQ:NVDA) is one of the best AI stocks for 2022. NVIDIA GPU deep learning, an enterprise AI product from the California-based company, is widely used for training deep neural networks.
NVIDIA Corporation (NASDAQ:NVDA) shares have risen 35% over the last six months as the chipmaker continues to dominate the GPU market. The company is among the biggest suppliers of semiconductors to data centers globally. The company grew its year-over-year revenue in the third quarter of 2021, reporting total revenue of $7.10 billion.
On December 3, Citi analyst Atif Malik maintained a Buy rating on NVIDIA Corporation (NASDAQ:NVDA) with a price target of $350. In addition, 83 elite funds had a stake in NVIDIA Corporation (NASDAQ:NVDA) worth over $10 billion at the end of the September quarter.
Among the hedge funds being tracked by Insider Monkey, GQG Partners is a leading shareholder in the California-based GPU maker with 15 million shares worth more than $3.14 billion.
Here is what Harding Loevner has to say about NVIDIA Corporation in its Q3 2021 investor letter:
“The proliferation of devices using chips, whether EVs, “things” in lol, or embedded systems more generally, results in the generation of oceans of data potentially needing to be stored, processed, and analyzed. NVIDIA, the leading chip designer well-known for its graphic processing units and its complementary CUDA software ecosystem, is at the forefront of the effort to provide the analytical platform needed to unlock the full potential of such specialist processors.”
4. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 195
Alphabet Inc. (NASDAQ:GOOGL), the largest AI company in the world, provides online advertising services internationally. The California-based tech giant operates Google Cloud and Google Services such as YouTube, Google Play, Chrome, and Android.
Alphabet Inc. (NASDAQ:GOOGL) develops a wide range of AI products and services, including its self-driving car company, Waymo. It’s behind DeepMind, and Google Duplex, an AI voice interface. In early November, Alphabet Inc. (NASDAQ:GOOGL) announced the launch of Isomorphic Labs, an AI-powered drug discovery firm spun out of DeepMind.
On November 2, a Morgan Stanley analyst maintained an Overweight rating on Alphabet Inc. (NASDAQ:GOOGL) with a price target of $3,200. Overall, 195 funds of the 867 elite funds tracked by Insider Monkey reported owning stakes in Alphabet Inc. (NASDAQ:GOOGL) at the end of September 2021, up from 190 in the preceding quarter. The total value of these stakes is $28.6 billion.
Here is what Saturna Capital Amana Funds has to say about Alphabet Inc. in its Q3 2021 investor letter:
“Alphabet was a new addition to the Fund this year, as we believed it important to have exposure to the top online media and advertising company in the world. Some have raised concerns surrounding Alphabet’s exposure to political interference, but we take comfort from the belief that were the company to be broken up, it would quite likely be worth even more than as a single entity.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 242
Amazon.com, Inc. (NASDAQ:AMZN) uses artificial intelligence to steer its businesses ranging from e-commerce to video streaming, Alexa, and cloud computing.
Cowen analyst John Blackledge believes robust growth at Amazon Web Services and AMZN’s advertising business will propel operating margin expansion. In addition, Blackledge expects the company’s sales growth to accelerate starting in the second quarter of 2022. On December 13, Blackledge maintained an Outperform rating on Amazon.com, Inc. (NASDAQ:AMZN) and increased his price target for the stock to $4,500 from $4,300.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Amazon.com, Inc. (NASDAQ:AMZN) with 1.93 million shares worth more than $6.34 billion. Overall, 242 funds of the 867 hedge funds tracked by Insider Monkey reported owning stakes in Amazon.com, Inc. (NASDAQ:AMZN) at the end of the third quarter of 2021.
Here is what Davis Opportunity Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q3 2021 investor letter:
“E-commerce, online search, and advertising, social media and software are another component of the portfolio that have proven, attractive businesses. The online portion of the Fund is currently dominated by such market leaders as Amazon.com. We are attracted to these names based on the size and rapid expansion of their market opportunities globally, their ability to generate and grow new revenue sources through constant innovation, ample operating leverage as they continue to scale, and capable, focused, highly competitive leadership teams. If purchased at sensible prices, these types of businesses in our experience can contribute meaningfully to long-term results.”
2. Meta Platforms, Inc. (NASDAQ:FB)
Number of Hedge Fund Holders: 248
Internet giant Meta Platforms, Inc. (NASDAQ:FB), formerly known as Facebook, Inc., develops social media applications, in-home devices, and VR headsets. The California-based tech giant utilizes AI in blocking misinformation and other harmful content on its family of apps. Additionally, AI tools developed by Meta Platforms, Inc. (NASDAQ:FB) play a major role in improving the customer shopping experience on Facebook, Instagram, and WhatsApp.
Meta Platforms, Inc. (NASDAQ:FB) is also gaining favor with investors as it aggressively expands its presence in the metaverse, a shared virtual world environment.
Overall, 248 funds of the 867 elite funds tracked by Insider Monkey reported owning stakes in Meta Platforms, Inc. (NASDAQ:FB) at the end of September 2021. The total value of these stakes is $38.5 billion.
Here is what Canterbury Tollgate has to say about Meta Platforms, Inc. in its Q3 2021 investor letter:
“To say traditional media is anti-Facebook would not be an overstatement. An already intense and multi-year critique of (or attack on) Facebook has ratcheted up in recent weeks. Facebook’s research efforts have been reported on, if often derided, for nearly a decade. Going back to 2014, Slate.com called their research practices “unethical” when FB tried to study the impact social posts had on users. Now those efforts have been turned against them for the kill shot.
My job is to observe, assess, and allocate. Not to commentate on all the whims and wishes of the media narrative. However, in the case of Facebook, I cannot avoid going into some detail re: the onslaught against them, which I find to be most unwarranted and insincere.
Last month the Wall Street Journal ran a five-piece series titled “The Facebook Files” which allegedly shows how toxic Instagram is for teens. The foundation of their argument was a single slide from an internal presentation claiming, based on FB’s own research, that of teens who had a negative self-image, one-third said Instagram “made them feel worse.” iii Somehow the implication here is that this is not an inescapable aspect of either the human psyche and/or society-at-large, but that it is of Facebook’s doing…” (Click here to see the full text)
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 250
Software giant Microsoft Corporation (NASDAQ:MSFT) is one of the best AI stocks for 2022, as the Washington-based company continues to grow its AI and cloud computing platform, Azure.
Morgan Stanley analyst Keith Weiss is bullish on Microsoft Corporation (NASDAQ:MSFT), trusting that the company’s strong database data platform solutions will be a major source of upside in 2022. On December 14, Weiss gave an Overweight rating on Microsoft Corporation (NASDAQ:MSFT) and set a price target of $364 for the stock.
Among the hedge funds being tracked by Insider Monkey, Washington-based firm Fisher Asset Management is a leading stakeholder in Microsoft Corporation (NASDAQ:MSFT) holding 25 million shares worth more than $7.2 billion.
At the end of the third quarter of 2021, 250 hedge funds in the database of Insider Monkey held stakes worth $65.8 billion in Microsoft Corporation (NASDAQ:MSFT), up from 238 in the preceding quarter worth $62.4 billion.
Here is what Baron Opportunity Fund has to say about Microsoft Corporation in its Q3 2021 investor letter:
“Shares of Microsoft Corporation, a cloud-software leader and provider of software productivity tools and infrastructure, rose during the quarter following a strong earnings report highlighting solid demand for its broad product stack and continued momentum migrating its business to the cloud. Microsoft’s results continued to be strong across the board, with total revenue beating Street estimates by 4.5%, an acceleration in Commercial Cloud revenue to 31% constant-currency growth, a four-point improvement in Commercial Cloud gross margins (to 70% from 66%), and GAAP earnings up 42%. We believe the company is positioned to deliver 13% to 15% organic growth over the next three years, underpinned by TAM expansion across its disruptive cloud product portfolio, as more companies look to transform and digitize their businesses, as well as strong operating leverage as its cloud products gain scale.”
You can also take a peek at the Top 10 Stock Picks of Mario Gabelli and 10 Stocks On Investors’ Radar After Posting Their Financial Results.
