The importance of artificial intelligence (“AI”) has increased manifold over the years and now, it has become an essential part of many technologies that we use on a regular basis. AI, along with its subset, machine learning (“ML”), as well as other technologies that make use of AI, like the Internet of Things, are finding applications in various segments across the world.
Notably, one of the major areas where AI is being used considerably is e-commerce. With the help of AI, companies are offering personalized recommendations to their customers on their e-commerce websites or mobile apps, by studying customers’ behaviors, including buying patterns, search histories, and so on. This is beneficial for companies because AI is able to suggest products that the customers are more likely to buy.
Meanwhile, video streaming platforms have a plethora of content, sometimes making it difficult for consumers to find what they want to watch. This is where AI comes in as it offers streamlined recommendations to users which are more likely to be suited to their tastes. Meanwhile, AI is also powering digital voice assistants. Voice assistants make use of technologies like natural language processing to respond to users’ commands or requests and with the help of ML, they are able to study the users’ patterns and develop better responses over time.
Moreover, AI is the driving force behind industrial automation. With the help of AI-powered robots, factories are automating mundane tasks, increasing operational efficiency, and improving output. Interestingly, AI is also finding its use in the development of self-driven cars. These cars make use of AI, sensors, cameras, and other technologies, to understand the environment around them and drive on the designated path, being mindful of traffic jams and other obstacles, and ensuring the safety of passengers.
AI is also being used in the healthcare segment in areas like robotic surgeries. Notably, with the help of AI, robots are increasing the efficiency and precision of surgeries. In fact, a
WhatNext Global article
cited that research has shown that AI-assisted robotic procedures “could result in almost five times lesser complications than surgeons operating traditionally.” Moreover, AI has been instrumental in the fight against COVID-19 as it has helped in areas like contact tracing, among others.
Owing to the positive developments that AI is bringing to various segments, it is no surprise that the AI market is expected to grow going forward. Notably, Markets and Markets stated in a
report
that the global AI market is estimated to witness a CAGR of 39.7% from 2021 to 2026.
4 Stocks to Watch Out For
Thanks to the myriad benefits that AI is offering across segments, it is only prudent to predict that the AI market will grow in the future. Hence, this seems like an opportune moment to keep an eye on companies that stand to benefit from this continued upswing in the use of AI. Notably, we have selected four such companies that carry a Zacks Rank #1 (Strong Buy) or 3 (Hold). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
NVIDIA Corporation
’s
NVDA
Compute and Networking segment offers Data Center platforms and systems for AI, HPC, and accelerated computing; Mellanox networking and interconnect solutions; automotive AI Cockpit, autonomous driving development agreements, and autonomous vehicle solutions; and Jetson for robotics and other embedded platforms. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 17.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 59%.
Micron Technology, Inc.
’s
MU
high-capacity memory and multi-chip packages help in powering AI training and inference engines, whether in cloud, or embedded in mobile and edge devices. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 2.4% over the past 60 days. The company’s expected earnings growth rate for the current year is 98.9%.
Amazon.com, Inc.
AMZN
offers Alexa, its AI-enabled voice assistant. Moreover, the company’s Amazon Web Services offer AI Services that help in providing ready-made intelligence to applications and workflows. Amazon currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 2.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 37.3%.
Alphabet Inc.
’s
GOOGL
Google offers AI and ML products and solutions through its Google Cloud platform. Moreover, Google has its AI-enabled Google Assistant. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 0.2% over the past 60 days. The company’s expected earnings growth rate for the current year is 52.6%.
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