Artificial intelligence (AI) has changed and revolutionized many industries – and more is about to come. The industry is expected to grow with a CAGR (Compounded Annual Growth Rate) close to 50% in the next five years.
The companies with the best artificial intelligence sticks to buy have a strong financial position, are active in cutting-edge niches, and invested heavily in artificial intelligence to improve profit margin rates.
Overview of the Artificial Intelligence Companies
Artificial intelligence has been increasingly adopted across the business spectrum. Think of areas as chatbots, fraud detection, or algorithmic trading, as it helps to analyze real-time activity in virtually any environment. With huge growth perspectives for the years ahead, AI caught the attention of major corporations that invested heavily in the last years.
What Are the Trading Hours for Artificial Intelligence Shares?
Most of the players that made our list of best artificial intelligence stocks to buy are traded on the North American markets. Therefore, the hours when the markets are open are the regular trading hours for ordinary shares.
Where Can I Buy Artificial Intelligence Shares?
Trading in shares and CFDs (Contracts for Difference) goes through brokerage houses. Against a commission or fee, and using a tight bid/ask spread, the online brokers listed on the comparison table next to this section give you access to the artificial intelligence shares.
We've shortlisted the best artifical intelligence stocks to buy in 2021 and you can start trading them in our recommended brokers by clicking on the buttons of the following table.
Top 10 Artificial Intelligence Shares to Buy
This is our top 10 list of artificial intelligence shares to buy in 2021:
- Deere & Company
Tesla needs no introduction – an electric car manufacturer is in an ongoing expansion both on the local and the international market. It recently made headlines as it announced that it invested over $1.5 billion in Bitcoin in January 2020 and that it is also investing in gold and gold ETFs. This is interesting because Tesla is not a cash-rich company but the move appears smart considering that Bitcoin soared to almost $50k from the moment of the announcement. From Palo Alto, California, the United States, Tesla is involved in manufacturing and selling electric vehicles and powertrain components and systems. Its auto-pilot software using AI technology.
- Market capitalization: $807.83 billion
- Extremely popular among millennials and because its share price outperformed the overall market in the last years
- Listed on Nasdaq under the ticker TSLA and part of the S&P 500 index
- It is up 2817% in the last five years
- Up over 20% this year alone
Google’s parent, Alphabet, makes most of its revenue via its online advertising services that it provides all around the world. However, the group’s activity is divided into services, cloud, and other bets – part of it involved in the development and use of AI.
- Market capitalization: $1.41 trillion
- It recently announced that it stroke a deal with Twitter so that the company will move its analytics and other functions to the Google Cloud
- Listed on Nasdaq under the ticker GOOG
- Up over 200% in the last five years
- Up over 19% in 2021 alone
Another American company, Kratos provides critical products to governments and private entities both locally and internationally. Its business activity is split into two segments – Unmanned Systems and Kratos Government Solutions. For the first one, it uses AI solutions with direct application in the aerospace and defense sectors.
- Market capitalization: $3.60 billion
- Listed on Nasdaq under the ticker KTOS
- Its shares are up closer to 900% in the last five years
- Up 11% this year alone
- Awarded a contract for FedRAMP advisory services from Elekta in January 2021
A Chinese company headquartered in Beijing, Baidu provides Internet search services in China and other parts of the world as its main business activity. However, it is involved in other segments too, such as Baidu Encyclopedia, Baidu Healthcare Wiki, or Apollo – an autonomous driving platform. Baidu Cloud, in particular, provides AI solutions and cloud infrastructure to both private and public entities.
- Market capitalization: $92.13 billion
- It recently won a permit to test driverless vehicles on California public roads
- Listed on Nasdaq under the ticker BIDU
- Up 90% in the last five years
- Up 27% year-to-date
Another Chinese company headquartered in Beijing, JD is mostly an e-commerce company with its business activities split into two segments – New Businesses and JD Retail. For the first segment, it uses AI to match its customers’ orders and also in the online-to-offline solutions that it provides.
- Market capitalization: $149.78 billion
- It was recently upgraded to Buy at many rating houses as analysts now see a “multifaceted” growth ahead for the company
- Listed on Nasdaq under the ticker JD
- Its shares are up over 300% in the last five years
- Up 7.5% year-to-date
An American company based in Sunnyvale, California, Trimble provides technology solutions designed to transform work processes worldwide. Its business is made up of four different sectors, with the Geospatial segment being the most “exotic” one. It also uses AI to automate application processes throughout its products and services.
- Market capitalization: $18.51 billion
- Up 10.81% year-to-date
- Listed on Nasdaq under the ticker TRMB
- Up close to 300% in the last five years
A Belgian company from Leuven, Materialise is involved in the 3D printing industry and uses AI processes to design packages and 3D scanners. It collaborates with various other companies across the world and Europe, mostly in the medical segment where it delivers medical software that enables medical-image based engineering.
- Market capitalization: $4.14 billion
- Listed on Nasdaq under the ticker MTLS
- One of the market leaders in its industry
- Up 41% YTD
- Up 1300% in the last five years
Deere & Company
One company many of our readers would be surprised to find here, Deere is a huge corporation headquartered in Moline, Illinois, the United States. It employs close to seventy-thousand people and it runs businesses in three major segments – financial services, construction and forestry, and agriculture and turf. Deere is using AI to reimagine farming and thus to gain competitive advantages in an increasingly competitive landscape.
- Market capitalization: $99.68 billion
- Recently upgraded by many analysts
- The share price is up 17.84% year-to-date
- Listed on the New York Stock Exchange under the ticker DE
- Up over 300% in the last five years
A Chinese company based in Guangzhou, Huya operates game live streaming platforms in China. A subsidiary of Tencent, it uses AI to develop software as well as Internet value-added services.
- Market capitalization: $5.76 billion
- Listed on the New York Stock Exchange under the ticker HUYA
- Affected by the recent Chinese antitrust complaint against Tencent, its owner
- Up 22% year-to-date
From Arizona, the United States, Axon develops energy weapons and sells them worldwide. The software and sensors division intensively uses AI technology to share, analyze, and securely store video and other digital evidence.
- Market capitalization: $11.59 billion
- Upgraded at Morgan Stanley in January 2021
- Recently changed its ticker
- Share price up 48.85% year-to-date
- Listed on Nasdaq under the ticker AXON
Expert Tip On Investing in Artificial Intelligence Shares
Follow closely the big names in the industry (e.g., Alphabet), and what their other projects are. The more they invest in AI, the more likely is that the industry will continue to expand, so the smaller names may offer great risk-reward opportunities.
Why Invest in Artificial Intelligence Shares?
The top tech giants in the world are offering artificial intelligence services and the trend is set to grow. However, the industry is fragmented, with a large number of players focused on product diversification.
Frequently Asked Questions
That would be Alphabet. Google’s parent company is one of the top 3 largest companies in the world and has vast resources to invest and deploy in the AI industry.
The AI-as-a-service market is expected to grow by CAGR 48.9% during 2021-2026, reaching over $43 billion in value.
Alphabet. A sound business model with a solid balance sheet, huge cash positions, and free cash flow available to the firm.
Investors who are willing to diversify their portfolio while at the same time remaining to invest in a sector with double-digit growth in the next five years.
Axon. The company was just upgraded at Morgan Stanley in January and is active in a niche sector with strong upside potential.
Companies try to improve profit margins by reducing operational costs – here is where AI intervenes as it improves productivity significantly.