AI has surged in popularity throughout 2023 and has gripped the imagination of the markets. Unlike many of the exciting new horizons that have emerged over recent years, from NFTs to the metaverse, companies are already finding game-changing applications using AI that are influencing the world today, and it is a market already worth hundreds of billions of dollars.
With that in mind, Joshua Warner, market analyst for City Index has revealed the most exciting AI stocks to watch, as part of their AI stock index.
A few of the highlights from the research reveals the following companies as top AI performers:
- NVIDIA is one of the major players already reaping significant financial rewards from AI.
- Palantir has promise, but stock prices will need to stabilise.
- Investors have bought into C3.ai’s story, but it is yet to convince Wall Street.
- IonQ has a bright future, but markets have got ahead of themselves
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Nvidia
NVIDIA is the leading provider of chips that are needed for data centres to run powerful AI and machine-learning applications, and it is the poster child of the AI world after earning a $1 trillion valuation this year.
Joshua says, “Nvidia’s shares have been undergoing a correction since peaking at all-time highs in July. We have seen the stock set lower highs since then to suggest we could be seeing a reversal, although the 7-week low hit a few days ago remained above the trough we saw in June.”
2. Palantir
Palantir’s software solutions help government and financial firms better understand data, they are now pivoting these systems towards AI models so that they can be continually improved, which has caught the attention of the stock market.
Unlike Palantir, C3.ai has seen the potential in the AI market long before it became a reality this year. They provide over 40 AI software solutions, from tools that can analyse banking transactions to a Customer Relationship Management system.
3. IonQ
Quantum computer manufacturer IonQ is a small player in the market but has recently quadrupled in value. Their most recent IonQ Forte quantum computer utilises cloud services, carving a niche in an AI-focused industry.
Furthermore Joshua suggests, thoroughly studying a company’s technology, market presence, and financial health before investing.
He recommends that although trading individual AI stocks can provide better returns, diversifying is not as risky and requires less research. He also suggests prioritising companies that genuinely focus on technological advancement.
