Thinking that artificial intelligence can boost your portfolio right now? You’re right. But which AI stocks more than the usual suspects: Alphabet Inc. (NASDAQ: GOOG)Apple inc. (NASDAQ: AAPL), Twilio Inc. (NYSE: TWLO), ServiceNow, Inc. (NYSE: NOW), NVIDIA Corporation (NASDAQ: NVDA) at QUALCOMM Incorporated (NASDAQ: QCOM).
Whether you believe that some of the popular companies above are bearish and/or overvalued (another argument for another day) or are just looking for new blood in your portfolio, let’s go through some options you can consider .
But first, in the interest of education, what are AI stocks and which ones should you consider now? Lets find out.
What are Artificial Intelligence (AI) Stocks?
At its most basic level, artificial intelligence (AI) refers to an algorithm or dynamic machine that learns and interprets the data presented to it. AI mimics human learning capabilities and applies them to a wide variety of capacities, from machine learning to the internet of things (IoT), self-driving vehicles, virtual assistant, and smart home appliances. AI stocks come from AI -driven companies.
Worldwide revenues for the artificial intelligence (AI) market should grow 16.4% annually in 2021 to $ 327.5 billion, according to the International Data Corporation’s (IDC) Worldwide Semiannual Artificial Intelligence Tracker. By 2024, AI should make more than the $ 500 billion mark.
Some quick facts from the IDC data:
- The software category will represent 88% of total market revenue in 2020.
- AI Applications will have the largest revenue share at 50% in 2020.
- The AI software platforms market will have a compound annual growth rate (CAGR) of 32.7%.
- AI system infrastructure software will have a five -year CAGR of 13.7%.
AI can work in your life in ways you never imagined, including through tax assistance, portfolio risk management through your brokerage, volume trading strategies, automated savings plans (think the Acorns) and even banking advice. All of these suggestions are very scratchy on the surface.
Consider These 3 AI Stocks to Get Results
Ready to grow your portfolio with AI stocks? Let’s find out what you want to add.
Upstart Holdings Inc. (NASDAQ: UPST)
Upstart Holdings Inc., headquartered in San Mateo, California, a cloud-based artificial intelligence (AI) lending platform, aggregates consumer demand for loans and connects it to its network of AIs. bank partners of the company. The platform connects consumers, banks and institutional investors through a shared lending platform.
There’s good news for everyone: By 2021, Upstart will more than triple its revenue, triple its revenue, triple the number of banks and credit unions on its platform and triple the number of auto dealerships it serves.
Its total revenue was $ 228 million, an increase of 250% from the third quarter of 2020 and total payroll revenue was $ 210 million, an increase of 235% year-over-year (YoY). Bank partners came in with 362,780 loans, with a total of $ 3.13 billion on platforms in the third quarter, up 244%. Revenue from operations was $ 28.6 million, up from $ 12.2 million last year and net GAAP revenue was $ 29.1 million, up from $ 9.7 million from the same period last year. Adjusted net income was $ 57.4 million, up from $ 12.3 as well.
What goes down in the pipeline? Upstart expects revenue of $ 255 to $ 265 million, net income of $ 16 to $ 20 million and adjusted net income of $ 48 to $ 50 million.
Splunk Inc. (NASDAQ: SPLK)
Splunk Inc., headquartered in San Francisco, will develop and procure software solutions. Its products include Splunk Cloud, Splunk Light and Splunk Enterprise. According to its site, the Splunk platform removes the barriers between data and action and empowers teams to ensure that their organizations (including information technology operations, security, IoT, application analytics, industry of business analytics) is secure, resilient and innovative.
Splunk just celebrated its first billion -dollar cloud quarter – cloud accounting served 68% of its money -generating software. The company ended 2021 with 635 customers, up 43% compared to a year ago.
In Q3, Cloud ARR was $ 1.11 billion, up 75% year-over-year and total ARR was $ 2.83 billion, up 37% year-over-year. Cloud revenue was $ 243 million, up 68% year-over-year and total revenue was $ 665 million, up 19% year-over-year.
The company expects big things for Q4: Cloud ARR is expected to be between $ 1.325 billion and $ 1.350 billion, with total ARR expected between $ 3.085 billion and $ 3.135 billion and total revenue between $ 740 million and $ 790 million.
Meta Platforms Inc. (NASDAQ: FB)
Okay, we’re a bit deceived by Meta Platforms Inc.’s suggestion, but this AI impression can’t be denied. Meta Platforms Inc., headquartered in Menlo Park, California and formerly known as Facebook Inc., is a global social technology company that goes beyond social media applications and virtual and augmented reality products through mobile devices, personal computers and other platforms. Its family of apps (FOA) segment includes Facebook, Instagram, Messenger and WhatsApp and the reality labs (RL) segment includes augmented and virtual reality related to consumer hardware, software, and content.
Total revenue in the fourth quarter should hit the $ 31.5 billion to $ 34 billion mark, although it did present challenges in light of Apple’s iOS 14 changes as well as factors associated with macroeconomic indications and COVID. -19.
For the third quarter of 2021, Meta Platforms reported $ 29.01 billion in revenue, up 35% year-on-year. Net income increased 17% to $ 9.2 billion (or $ 3.22 per diluted share). Analysts expect Meta to post $ 29.58 billion in revenue and EPS of $ 3.19
Facebook has monthly active users worldwide at 2.91 billion, up 7% year over year but flat compared to 2020. Facebook, Instagram, Messenger, WhatsApp got an annual increase of 12%, up 70 million quarter over quarter.
Consider AI for Your Next Big Move
Why add AI to your portfolio? Easy. Artificial intelligence is emerging in almost every technology -related business: automotive, financial, industrial, technology, healthcare and more. The automotive industry and digital assistants must continue to keep their promise to make everyday life easier-and better (just think of that the next time you ask Alexa to do something for you). Follow the AI boom but always consider your personalized investment strategy first.
Should you invest $ 1,000 in Splunk today?
Before you consider Splunk, you’ll want to hear it.
MarketBeat tracks the highest rated and best performing Wall Street research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified five stocks that top analysts are quietly whispering to their clients to buy now before catching up with the broader market … and Splunk isn’t on the list.
While Splunk currently has a “Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.
See The 5 Stocks Here
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