In this article, we discuss 5 most advanced AI companies. If you want to see more best AI stocks, the risk/reward, and methodology of this list, go directly to 10 Most Advanced AI Companies.
5. Tesla, Inc. (NASDAQ:TSLA)
Market Capitalization as of 12/5: $571.70 billion
Number of Hedge Fund Holders: 88
Tesla, Inc. (NASDAQ:TSLA) is a leading EV maker that’s working on autonomous vehicles using AI which to CEO Elon Musk is essential. Musk said in 2022, “But the overwhelming focus is on solving full self-driving…That’s essential. It’s really the difference between Tesla being worth a lot of money or worth basically zero.” In 2021, the company spent $2.593 billion on research and development up from $1.491 billion in 2020.
Given its market capitalization of $571.70 billion as of December 5, Tesla, Inc. (NASDAQ:TSLA) will need to make substantial progress in autonomous driving to justify its current valuation. The company ranks #5 on our list of best AI stocks.
4. Amazon.com, Inc. (NASDAQ:AMZN)
Market Capitalization as of 12/5: $928.45 billion
Number of Hedge Fund Holders: 269
Amazon.com, Inc. (NASDAQ:AMZN) has a leading cloud business in AWS that offers customers machine learning and artificial intelligent services on demand to meet their business needs. As a result, companies use AWS AI to enhance their customer service, create personalized web experiences, and also automate data extraction and analysis. Furthermore, Amazon.com, Inc. (NASDAQ:AMZN) uses AI to increase the efficiency of its e-commerce business and sell more items. As of 12/5, Amazon.com, Inc. (NASDAQ:AMZN) has a market capitalization of $928.45 billion, ranking #4 on our list of best AI stocks.
3. Alphabet Inc. (NASDAQ:GOOG)
Market Capitalization as of 12/5: $1.29 trillion
Number of Hedge Fund Holders: 156
Alphabet Inc. (NASDAQ:GOOG) uses AI to sell more ads, improve its search results, and to serve up more interesting videos for YouTube shorts. Given its Waymo business, Alphabet Inc. (NASDAQ:GOOG) is also working on autonomous driving that’s powered by AI. Furthermore, Alphabet Inc. (NASDAQ:GOOG) is one of the leaders in quantum computing.
In terms of total research and development which includes AI spending, Alphabet Inc. (NASDAQ:GOOG) spent $31.562 billion in R&D in 2021, also ranking among the leaders in that metric. 156 hedge funds in our database were long Alphabet Inc. (NASDAQ:GOOG) at the end of Q3.
2. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization as of 12/5: $1.87 trillion
Number of Hedge Fund Holders: 269
Microsoft Corporation (NASDAQ:MSFT) uses AI to improve its enterprise productivity software and to offer its customers AI services via Azure AI. Microsoft Corporation (NASDAQ:MSFT) is also making progress on quantum computing given its Azure quantum computing research team recently invented “a new kind of qubit” that could be a faster way to making industrial sized quantum computers. In the long term, Microsoft Corporation (NASDAQ:MSFT) has a goal of making a computer with one million qubits which could do computing faster than many other computers for certain types of tasks.
1. Apple Inc. (NASDAQ:AAPL)
Market Capitalization as of 12/5: $2.33 trillion
Number of Hedge Fund Holders: 140
Apple Inc. (NASDAQ:AAPL) ranks #1 on our list of best AI stocks given its market capitalization of $2.33 trillion. In terms of artificial intelligence, Apple Inc. (NASDAQ:AAPL) uses AI to power its personal assistant for iPhones, Siri. Apple Inc. (NASDAQ:AAPL) is also using AI to make an autonomous driving car that the company plans to launch in 2024 or later. For the fiscal 2022 year, Apple Inc. (NASDAQ:AAPL) spent $26.25 billion in R&D.
Wedgewood Partners commented on Apple Inc. (NASDAQ:AAPL) in a Q3 2022 investor letter,
Apple Inc. (NASDAQ:AAPL) grew revenues +5% (foreign exchange adjusted and excluding Russia) driven by record iPhone revenues that were up about +3% on an exceptional year ago comparison of +50%. Apple’s installed base is over 1.8 billion devices which helps drive a software and services business that has generated almost $80 billion of revenue over the past 4 quarters. As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially ICs) as well as software, continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.
140 hedge funds owned shares of Apple Inc. (NASDAQ:AAPL) at the end of Q3.
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