Slowly but surely, Artificial Intelligence (AI) is becoming a new area of contestation in the world market. AI provided services are growing in number with the passage of each day and global spending on AI is estimated to have increased by more than 12 per cent this year alone.
This might have also been contributed by the pandemic situation in the world is right now but while it may have increased the attention on AI in certain sectors this year, AI has been gaining attention for quite a while and is only expected to grow. Below are four stocks for which the time is right if you want to invest in AI related stocks for the long run.
NVIDIA Corporation (NASDAQ: NVDA)
Nvidia Corporation (NVDA) is a multinational technology company based in Santa Clara, California, USA. It specializes in the designing of graphic processing units (GPUs) which are used in computers and also system on a chip unit (SoCs) for the automotive market and mobile computing.
Graphics chip company NVDA has been increasingly attracting attention in the AI world since its chips have begun to be used for deep learning application and AI. According to Nvidia’s CEO, Jensen Huang, “It is exceptionally versatile, serving as a universal accelerator for the most important high-performance workloads, including AI training and inference as well as data analytics, scientific computing and cloud graphics.”
It recorded its revenue for the third quarter at $4.73 billion which is a 57 per cent increase from the earlier year and a 22 per cent increase from the previous quarter. It is one of the best AI stocks to buy for the long run as its chips are now being used for AI deep learning and intensive tasks. Its recent development, Nvidia A100, has been the main cause for its raise in stocks in the first quarter this year.
Workday Inc (NASDAQ: WDAY)
Workday, Inc. (WDAY) is an on demand, cloud based, software retailer which caters to human capital management and financial management. Its cloud software is becoming increasingly important in a world where businesses, large or small, rely on such software. Its stock increased by 40 per cent in the part year.
Its own functioning as a software company employs machine learning in most of its features in order to deliver to its customers. Algorithms used by WDAY are even used in its financial side by detecting spikes in accounting entries and then comparing them to other transactions. This year, Fortune magazine ranked it fifth in its Fortune List of the Top 100 Companies to Work For in 2020based on the satisfaction of its employees. Workday’s stock has climbed by 40% in 2020 and its stocks have been surging since the first quarter.
International Business Machines Corporation (NYSE: IBM)
International Business Machines Corporation (IBM) is a multinational technological and consultation company based in Armonk, New York, USA. This tech giant has the experience of more than a century and provides both hardware and software services to large enterprises.
Its strategy with AI is to utilize the technology in enhancing human intelligence in order to increase the efficiency of the human mind and lower the costs in the sectors of interest. In the healthcare industry, IBM plans to use AI and create personalized health care plans for patients, create new drugs and speed up the process of introducing them into the market, and improve the overall quality of healthcare.
Other than the healthcare sector, International Business Machines Corporation is also working with ProMare, a marine research organization, on creating an AI captain for ships in order to allow them to self-navigate across the Atlantic Ocean.
While IBM has not done well this year, it still generated a newt cash of $4.3 billion and ended its third quarter with $5.8 billion. And it is still predicted that it is a company which will benefit from the AI boom as it will turn its focus more on its open hybrid cloud platform and AI features.
Docusign Inc (NASDAQ: DOCU)
DocuSign, Inc. (DOCU) is a company which allows better handling of electronic agreements through its DocuSign Agreement Cloud. The DocuSign Agreement Cloud offers the ability to perform eSignature across different electronic devices due to DocuSign.
Seal is another one of DOCU’s contract analytics and it can search large collection of agreements by legal concepts at a rapid speed. Other than that, it can also critically compare clauses and identify areas of risks and opportunities while giving insight to solve the identified challenges. Seal’s AI technology will be used to enhance DocuSign CLM and through its customers will rely more on the faster and more efficient process of electronic business and deal signing.
DocuSign’s total revenue for the third quarter was $382.9 million which is an increase of 53% year over year. It is even being suggested that certain businesses will not want to move on to hard copies even after the pandemic has been taken care of.