10 Stocks That Will Change the Future

In this article, we will be taking a look at 10 stocks that will change the future.

Technological Advancements

From the start of the year, we have been hearing about how new technology, artificial intelligence, robotics, and automation are some of the things that will significantly transform the world as we know it. Those who are skeptical about the impact of new technologies hold that such assertions are mere exaggerations. However, others are more inclined to believe that we may currently be in the midst of a new tech revolution. With the rise of new technologies, everything is beginning to change, ranging from how you interact with other people and live day-to-day to how you work and go about your professional life. Because new technological advancements are rapidly taking over the world, many companies are incorporating new tech and artificial intelligence in their operations, while those that have been operating in this space since their inception are continuing to get ahead.

An example of one such company is NVIDIA Corporation (NASDAQ:NVDA), a semiconductor company that has been the talk of the town since the start of the year because of its stellar work in the artificial intelligence field. The company offers AI chips that have become increasingly popular among its customers and investors alike. Building on its momentum, on August 8, NVIDIA Corporation (NASDAQ:NVDA) also announced its release of an updated AI processor that is even more efficient than its earlier products. This move is being considered an attempt by the company to retain its dominance in the AI chips space. The new processor is called the Grace Hopper Superchip, and it is a combination graphics chip and processor. This is the world’s first HBM3e processor and is designed specifically for the “era of accelerated computing and generative AI.” The new chip is expected to be 50% faster than the company’s current HBM3 processors, making it well-positioned to handle complex generative AI workloads. According to NVIDIA Corporation’s (NASDAQ:NVDA) report, the chip will begin to be produced in the second quarter of 2024.

Investments In New Tech

The creation of products like the Grace Hopper Superchip highlights how tech companies today are embracing the way new developments in their field are changing consumer expectations. This is also leading to companies like NVIDIA Corporation (NASDAQ:NVDA) now working on meeting these changing expectations to offer faster, more efficient, and more cutting-edge technologies. At the same time, other major companies like Microsoft Corporation (NASDAQ:MSFT) are doing their part in this area by developing their own technologies while investing in other companies that are steadily becoming leaders in this space. For instance, Microsoft Corporation (NASDAQ:MSFT) made an early move in generative AI with a $1 billion investment in OpenAI, the company behind ChatGPT, in 2019. While this investment did not garner much attention at the time it was made, with the virality of ChatGPT today, both OpenAI and Microsoft Corporation (NASDAQ:MSFT) have come under the spotlight. By this April, the latter’s investment in the former was estimated to be about $13 billion, according to CNBC. This immense investment has also given the big tech giant an edge over other tech companies investing in AI since it now has access to OpenAI’s generative AI technology, which it has steadily been incorporating into its own Bing search engine. The same technology has also been integrated into other Microsoft Corporation (NASDAQ:MSFT) offerings, such as its sales and marketing software and the Azure cloud.

With the way companies like these are rapidly incorporating new technologies into their products and services, it is highly likely that before long, the technology sector, along with several others, will become absolutely unrecognizable, exponentially faster, and immensely more efficient. Even healthcare companies like Medtronic plc (NYSE:MDT) are integrating artificial intelligence into their products. For example, the Medtronic Touch Surgery Enterprise is the first AI-powered surgical video management and analytics platform for operating rooms globally. At the same time, tech startups and companies are bringing highly innovative products and technologies to the table. DeepMind is one example of an AI company that has been working to combine machine learning and systems neuroscience to build learning algorithms. The company’s AI system uses raw pixels as data input in its deep learning process, online other AI systems which are pre-programmed. DeepMind’s success in the AI field and its ability to make innovative and different products in the area resulted in its acquisition by Alphabet Inc. (NASDAQ:GOOG) in 2014.

Another interesting private company is Numenta, which has been developing powerful neuroscience-based AI solutions. The company leverages the structures and efficiencies found in the brain to accelerate deep learning networks and make advanced AI systems. Numenta’s work, if carried on as it is right now, may result in the creation of an AI system that functions similarly to the human brain, more so than any other AI system does today. These are just a few examples of how we are currently seeing the world change, but they are enough to highlight the fact that today there are many companies that are working hard to become part of a tech-oriented future. Considering the above, we have compiled a list of some stocks that will change the future for the long term based on their current operations. Many of these companies may even be considered some of the best growth stocks for the next five years.

Photo by Maximalfocus on Unsplash

Our Methodology

We used a consensus opinion-based approach to find stocks that most sources online think will change the future. Sources we used include Investor Place articles, Barron’s, and Motley Fool, among others. To rank these stocks, we used Insider Monkey’s hedge fund data for the first quarter. The stocks are thus ranked based on the number of hedge funds holding stakes in them, from the lowest to the highest number.

Stocks That Will Change the Future

10. SenseTime Group Inc. (OTC:SNTMF)

Number of Hedge Fund Holders: N/A

SenseTime Group Inc. (OTC:SNTMF) is an investment holding company based in Shanghai, China. The company engages in developing and selling artificial intelligence software platforms in China, Northeast Asia, Southeast Asia, and internationally.

SenseTime Group Inc. (OTC:SNTMF) offers a range of AI products and services that are making it a leading company in the Chinese AI market. Its SenseFoundry Enterprise Platform facilitates and accelerates the digital transformation of enterprise customers. It also offers a SenseFoundry Platform for smart cities and a SenseME product for various Internet of Things devices to facilitate perceptual intelligence and content enhancement.

9. ABB Ltd (NYSE:ABB)

Number of Hedge Fund Holders: 17

ABB Ltd (NYSE:ABB) is an electrical components and equipment company based in Zurich, Switzerland. The company manufactures and sells electrification, automation, robotics, and motion products in the utilities, industry and transport, and infrastructure sectors.

Barclays analysts have maintained an Equal Weight rating on shares of ABB Ltd (NYSE:ABB) as of August 7.

The company’s electrification and automation products and services are helping its customers move towards a more sustainable future. ABB Ltd (NYSE:ABB) offers innovative digitally connected and enabled industrial equipment and systems, which can change the way many industries operate in the coming years.

There were 17 hedge funds holding stakes in ABB Ltd (NYSE:ABB) at the end of the first quarter. Their total stake value in the company was $53.4 million.

Quantinno Capital held 25,729 shares in ABB Ltd (NYSE:ABB) at the end of the first quarter, making it the largest shareholder in the company for the quarter.

8. Mobileye NV (NYSE:MBLY)

Number of Hedge Fund Holders: 22

As of July 28, Tom Narayan, an analyst at RBC Capital, maintains an Outperform rating on shares of Mobileye NV (NYSE:MBLY). The analyst also raised his price target on the stock from $42 to $48.

Mobileye NV (NYSE:MBLY) is an automotive parts and equipment company that is developing and deploying advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions. The company is based in Jerusalem, Israel. Its solutions offer features such as real-time detection of road users. Cloud-Enhanced Driver Assist, one of its solutions, offers drivers real-time scene interpretations. These products are set to significantly change the way autonomous driving cars develop in the future.

We saw 22 hedge funds holding stakes in Mobileye NV (NYSE:MBLY) in the first quarter, with a total stake value of $140.4 million.

Like Medtronic plc (NYSE:MDT), NVIDIA Corporation (NASDAQ:NVDA), and Microsoft Corporation (NASDAQ:MSFT), Mobileye NV (NYSE:MBLY) is a stock that is revolutionizing its sector today.

7. InMode Ltd. (NASDAQ:INMD)

Number of Hedge Fund Holders: 34

Royce & Associates was the most prominent shareholder in InMode Ltd. (NASDAQ:INMD) at the end of the first quarter, holding 110,000 shares in the company.

InMode Ltd. (NASDAQ:INMD) is a healthcare equipment company. It develops, manufactures, and markets minimally invasive aesthetic medical products. The company is based in Yokne’am, Israel. Its radio frequency devices used for cosmetic surgery can help revolutionize the medical aesthetic products sector.

InMode Ltd. (NASDAQ:INMD) was spotted in the 13F holdings of 34 hedge funds in the first quarter. Their total stake value in the company was $212.1 million.

Matt Miksic, an analyst at Barclays, holds an Overweight rating on shares of InMode Ltd. (NASDAQ:INMD) as of August 1. The analyst also raised his price target on the stock from $47 to $54.

6. Rockwell Automation Inc. (NYSE:ROK)

Number of Hedge Fund Holders: 34

Our hedge fund data for the first quarter shows 34 hedge funds holding stakes in Rockwell Automation Inc. (NYSE:ROK), with a total stake value of $399.3 million.

Rockwell Automation Inc. (NYSE:ROK) is a provider of industrial automation and digital transformation solutions. It is based in Milwaukee, Wisconsin. The company is a leader in the discrete automation business, which assembles highly engineered components into valuable final product configurations. Its products and solutions are set to change the way the automotive and industrial sectors function by introducing sustainability in automation.

An Overweight rating was maintained on shares of Rockwell Automation Inc. (NYSE:ROK) by Joshua Pokrzywinski, an analyst at Morgan Stanley, on August 2. The analyst also raised his price target on the stock from $340 to $345.

Impax Asset Management was the largest shareholder in Rockwell Automation Inc. (NYSE:ROK) at the end of the first quarter, holding 528,121 shares in the company.

Here’s what Artisan Partners said about Rockwell Automation Inc. (NYSE:ROK) in its first-quarter 2023 investor letter:

“Rockwell Automation, Inc. (NYSE:ROK) is a leading provider of industrial automation technology. The company has a strong brand, installed base and distribution network and is expanding its product offering to include more cloud-based software to complement its leading hardware business. In the coming years, we expect the company to benefit from an acceleration in US manufacturing investment to support customers’ nearshoring initiatives and in response to federal government incentive programs to manufacture energy transition products domestically. In addition, we expect Rockwell to experience revenue and margin tailwinds in 2023 from easing supply chain constraints, which limited its ability to meet customer demand in 2022.”

Like Medtronic plc (NYSE:MDT), NVIDIA Corporation (NASDAQ:NVDA), and Microsoft Corporation (NASDAQ:MSFT), Rockwell Automation Inc. (NYSE:ROK) is a cutting-edge stock that is set to change the world.

5. GE HealthCare Technologies Inc. (NASDAQ:GEHC)

Number of Hedge Fund Holders: 37

Patrick Wood, an analyst at Morgan Stanley, maintains an Equal Weight rating on shares of GE HealthCare Technologies Inc. (NASDAQ:GEHC) as of July 26. The analyst also raised his price target on the stock from $76 to $78.

GE HealthCare Technologies Inc. (NASDAQ:GEHC) was seen in the portfolios of 37 hedge funds at the end of the first quarter. Their total stake value in the company was $955.9 million.

Based in Chicago, Illinois, GE HealthCare Technologies Inc. (NASDAQ:GEHC) is a healthcare equipment company that develops products, services, and complementary digital solutions in the diagnosis, treatment, and monitoring of patients. The company is a leader in the diagnostic equipment space since it offers scanners that are vital for the monitoring and detection of Alzheimer’s disease. Its scanners can accurately check whether medications for this disease are working, which can significantly change the way healthcare for such diseases operates in the future.

This is what Vulcan Value Partners had to say about GE HealthCare Technologies Inc. (NASDAQ:GEHC) in its first-quarter 2023 investor letter:

“We sold GE HealthCare Technologies Inc. (NASDAQ:GEHC) during the quarter. GE HealthCare is a recent spin-off from General Electric Company and provides imaging, ultrasound, patient care solutions and pharmaceutical diagnostics to customers around the world. The company is a leader in a global oligopoly and has a massive installed base. Half of the company’s revenue is recurring, margins are stable to rising, and it generates significant free cash flow. As a recent operating unit inside of GE, we believe the market has been undervaluing this asset. Although the spin price reflected this under-valuation, after the spin-off, its stock price rose to meet our estimate of its intrinsic value, and we sold the position. GE HealthCare remains on our MVP list.”

4. Medtronic plc (NYSE:MDT)

Number of Hedge Fund Holders: 52

We saw 52 hedge funds holding stakes in Medtronic plc (NYSE:MDT) in the first quarter, with a total stake value of $1.6 billion.

Medtronic plc (NYSE:MDT) is another healthcare equipment company on our list, based in Dublin, Ireland. The company is developing AI-based medical devices such as the GI Genius™ Intelligent Endoscopy Module. This is an AI-based polyp detection system that processes colonoscopy images.

Kristen Stewart, an analyst at CL King, initiated coverage on Medtronic plc (NYSE:MDT) shares with a Buy rating and a $106 price target on June 30.

Appleseed Fund mentioned Medtronic plc (NYSE:MDT) in its first-quarter 2023 investor letter:

“During the most recent quarter, Appleseed Fund added three new equity holdings: Medtronic plc (NYSE:MDT), Stanley Black & Decker (SWK), and Synovus Financial (SNV). Medtronic is the world’s largest device manufacturer, and it holds the number one or number two market share in most of its product segments. Medtronic’s business is heavily weighted towards complicated in-patient procedures, which are typically quite profitable. Industry dynamics are quite attractive with an aging global population and the growth of improved healthcare in emerging markets; furthermore, most of its segments are highly concentrated with just 2-3 players that split each segment’s market share, affording the key participants with significant economies of scale and pricing power. The Company has been recently addressing several temporary headwinds including a strong dollar, inflation, a delayed recovery in surgical volumes from the coronavirus pandemic, and supply chain issues. Once these issues reach the rearview mirror, the Company’s growth and margin expansion plans should transform into reality.”

3. Intuitive Surgical, Inc. (NASDAQ:ISRG)

Number of Hedge Fund Holders: 67

Intuitive Surgical, Inc. (NASDAQ:ISRG) manufactures products that enhance the quality of and access to minimally invasive care. It is a leading medical device company and has developed the robotic Da Vinci Surgical System.

Matt Miksic at Barclays holds an Overweight rating and a $385 price target on Intuitive Surgical, Inc. (NASDAQ:ISRG) shares as of July 24.

In the first quarter, 67 hedge funds were long Intuitive Surgical, Inc. (NASDAQ:ISRG), with a total stake value of $2.2 billion.

This is what Baron Funds said about Intuitive Surgical, Inc. (NASDAQ:ISRG) in its second-quarter 2023 investor letter:

“Strength in health care equipment was largely due to the outperformance of sleep apnea device company Inspire Medical Systems, Inc. and robotic surgery system pioneer Intuitive Surgical, Inc. (NASDAQ:ISRG). Intuitive Surgical, Inc. manufactures and markets the da Vinci Surgical System, a robotic system used for minimally invasive procedures. Shares increased after Intuitive reported strong first quarter financial results highlighted by a 26% increase in procedures and raised guidance for 2023. These results, which came in well above Street estimates, were driven by strength in general surgery procedures in the U.S. and non-urology procedures outside the U.S. We continue to believe Intuitive has a large opportunity to expand the use of robotic surgery over time.”

2. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 132

NVIDIA Corporation (NASDAQ:NVDA) is a leader in the semiconductor and AI markets today with its development of GPU (AI) chips that are essential to AI processes and systems.

A total of 132 hedge funds held stakes in NVIDIA Corporation (NASDAQ:NVDA) in the first quarter, with a total stake value of $12.3 billion.

Mizuho’s Vijay Rakesh maintains a Buy rating and a $530 price target on NVIDIA Corporation (NASDAQ:NVDA) shares as of July 24.

Polen Capital made the following comments about NVIDIA Corporation (NASDAQ:NVDA) in its second-quarter 2023 investor letter:

NVIDIA Corporation (NASDAQ:NVDA) was the largest relative headwind to the Portfolio as we do not own this “AI darling.” NVIDIA shares rose more than 50% in the second quarter alone, following a 90% increase in the share price in the first quarter of 2023. NVIDIA supplies GPUs (graphics processing units), the preferred (often necessary) semiconductors for machine learning and AI. On their recent earnings call, NVIDIA management announced that they expect a significant increase in demand for the GPUs for datacenter customers beginning this quarter and lasting at least through the end of this year. NVIDIA’s datacenter business, which was almost non-existent from a revenue perspective eight years ago, is now the company’s largest and fastest-growing business.

We find NVIDIA’s competitive advantages to be quite large around its technology, but even more importantly around its full-stack solutions, including highly integrated hardware, software, and networking equipment and a robust developer ecosystem. It would be difficult to disrupt these competitive advantages in our view. That said, with a greater than $1 trillion valuation on the back of what feels like peak-level AI exuberance since OpenAI’s breakthrough with ChatGPT, we believe virtually all the upside opportunities we can currently see for the company are already priced in…” (Click here to read the full text)

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 289

Microsoft Corporation (NASDAQ:MSFT) was spotted in the portfolios of 289 hedge funds in the first quarter. Their total stake value was $57.9 billion.

Microsoft Corporation (NASDAQ:MSFT) is another tech company that is revolutionizing the AI space. It has an immense stake in OpenAI, a leading generative AI company and the developer of ChatGPT. It is also using this relationship with OpenAI to integrate advanced AI technology in its own chatbot.

A Buy rating and a $433 price target were held on Microsoft Corporation (NASDAQ:MSFT) shares on August 2 by Ivan Feinseth at Tigress Financial.

Here’s what Third Point Management said about Microsoft Corporation (NASDAQ:MSFT) in its second-quarter 2023 investor letter:

“While our gross equity exposure is still modest (below 100% on the long side), we have increased our nets to 70% as of this writing and 77% on a beta adjusted basis. About 45% of that net long exposure is composed of direct and indirect AI beneficiaries trading at reasonable valuations. We have sized up our investments in certain cloud software businesses including Microsoft Corporation (NASDAQ:MSFT), a clear AI winner as a result of its rapidly growing Azure cloud business, upside from applying AI features to its core Office products, investment in Open AI, and ability to provide AI services to other companies (for example, Microsoft holds a stake in one of our portfolio companies, LSE, which it is also assisting in harnessing greater value in its data via AI).”

See also 10 Best EV, Battery and Autonomous Driving ETFs and 20 Best-Funded AI Startups in 2023.

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Disclosure: None. 10 Stocks That Will Change the Future is originally published on Insider Monkey.