7 Artificial Intelligence Companies To Invest In Now

If you are bullish regarding the prospects of artificial intelligence in the future of business and everyday life, then it makes sense to look for and buy shares of 7 artificial intelligence companies to invest in now, because these companies will likely be market leaders in this exciting field in the future.

We are still striving to grasp the full extent of the possibilities of artificial intelligence technology. We can’t even put a definite boundary on what the technology’s scope is or can be. Hence, it can be tricky to gauge which companies will be able to capitalize on AI in the future, but we can certainly try, based on how those companies are doing now and how good their prospects are in terms of the AI technology they are trying to develop.

A lot of business-oriented and news websites have their own suggestions on which stocks to buy to take advantage of an artificial intelligence-dominated future. However, a lot of these discussions revolve around the potential power of the artificial intelligence technologies they are offering now and will unveil in the future. Focusing on just that would include the risk of ignoring the companies’ business performance. After all, a company that has sound financials and operating statistics now will have a better chance of driving the AI conversation.

For the purposes of this article, we researched which companies have a noteworthy footprint in AI, and then ranked them according to their revenue growth during the most recent 12-month financial period which they’ve reported. Of course, we’ll also cover the AI technologies that each company has or will have, and then explain why those technologies will contribute to that company being worthy of investment.

We’ll also list these companies’ ownership among the hedge funds in our database, to gauge what skilled investors think of their future prospects in AI and in general. At Insider Monkey, we track insider trading and hedge fund activity to uncover actionable patterns and profit from them. We track over 700 of the most successful hedge funds ever in our database and identify only their best stock picks. Our flagship strategy has gained 44% since February 2016 and our stock picks released in the middle of February 2017 beat the market by over 5 percentage points in the three months that followed. Our latest stock picks were released last month, which investors can gain access to by becoming a subscriber to Insider Monkey’s premium newsletters.

The 7 artificial intelligence companies to invest in now include Alphabet Inc (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), Facebook Inc (NASDAQ:FB), Mobileye NV (NYSE:MBLY), NVIDIA Corporation (NASDAQ:NVDA), salesforce.com, inc. (NYSE:CRM), and Tesla Inc (NASDAQ:TSLA). Head to the next page to see how they ranked.

For additional reading, Insider Monkey also has a list of 11 companies with a competitive advantage for long term investors, which also includes some of the companies featured in this article.

7. Alphabet Inc (NASDAQ:GOOG)

– 21.51% revenue growth during the 12-month period ended March 2017

AI technology is already used in Alphabet’s bread and butter search business. In addition, the search giant has numerous AI endeavors underway such as its Google Home virtual assistant, a self-driving car project, and even a machine that beat a world champion in the complex Chinese strategic board game Go. Alphabet’s class A shares were owned by 135 hedge funds in our system on March 31, while its class C shares were owned by 117.

6. salesforce.com, inc. (NYSE:CRM)

– 25.31% revenue growth during the 12-month period ended April 2017

Salesforce, the market leader in customer relation management, just launched Einstein Analytics, a platform that is poised to turn customer data, something that the company is never in short supply of, into actionable services. That might well be the next phase of growth for the company. Hedge funds grew far more bullish on Salesforce in Q1, with 79 owning the stock, up from just 64 at the end of 2016.

5. Amazon.com, Inc. (NASDAQ:AMZN)

– 25.70% revenue growth during the 12-month period ended March 2017

The popularity of Alexa, Amazon’s AI-powered virtual assistant, bodes well for the online retailing giant’s AI prospects. Since 2014, Alexa has gained brand equity as a consumer-facing AI assistant, and has learned 1,500 new skills and features. Another facet to Amazon’s AI prospects: its huge cloud business. Amazon is one of the most popular stocks among hedge funds, being owned by 129 of them in our system.

4. NVIDIA Corporation (NASDAQ:NVDA)

– 46.05% revenue growth during the 12-month period ended April 2017

Perhaps the only major pure-play artificial intelligence company right now, the chipmaker has first-mover advantage in producing and developing microchips built for AI technology and deep learning functions. As a result, investors are giddy about the company’s future value, while rivals are being forced to play catch up. Hedge fund ownership of NVIDIA shot up by 37% in Q1 to 48 funds long the stock.

The final three companies on this list of 7 artificial intelligence companies to invest in now have exhibited phenomenal revenue growth of more than 50% over their latest one-year financial period.

3. Mobileye NV (NYSE:MBLY)

– 50.68% revenue growth during the 12-month period ended March 2017

Israeli tech company Mobileye has been making waves for two reasons: its vision-based advanced driver-assistance systems, which are seen as a stepping stone towards self-driving car technology, and Intel Corporation (NASDAQ:INTC)’s agreement to buy the company for $15 billion in March 2017 at a hefty premium. (Note: The Intel deal has yet to close, so Mobileye’s stock is still public, perhaps until later this month.) Mobileye also enjoyed a big jump in hedge fund ownership in the first quarter, rising by 18 funds to 51 total.

2. Facebook Inc (NASDAQ:FB)

– 53.22% revenue growth during the 12-month period ended March 2017

The world’s largest social media network is already using AI technology in conjunction with the personal assistant on its Messenger app, as well as facial recognition. With a formidable AI lab and a treasure trove of data from its 2 billion users, Facebook is well-positioned to grow its AI capabilities faster than just about anyone. Facebook was also the most popular stock among hedge funds on March 31, being held by 155 of them.

1. Tesla Inc (NASDAQ:TSLA)

– 101.01% revenue growth during the 12-month period ended March 2017

Tesla’s first mass market car is scheduled to be rolled out this month with much anticipation, not only from car enthusiasts, but also from those who are keen to check the AI capabilities of its new cars. In fact, among all car makers, Tesla has one of the most hectic timelines for the release of a fully autonomous car, with full AI-driven self-driving technology set to be rolled out two years from now. It’s lofty valuation has kept many hedge funds on the sidelines, but ownership of Tesla did rise by 7 to 45 funds during the first quarter.

Tesla’s combination of formidable artificial intelligence technology and strong revenue growth puts it on top of this list of 7 artificial intelligence companies to invest in now.

Disclosure: None