Are artificial intelligence stocks the promising future we want them to be? They just might be … This can be an exciting new technological frontier that’s full of potential.
That’s why everyday traders want to know which artificial intelligence stocks to watch.
Let’s break down the basics first…
Artificial intelligence (AI) is an advanced form of computer processing. This technology includes machine learning and neural networks. AI is what allows computers to learn and solve problems like humans. It’s used in voice recognition, voice assistant technology, self-driving vehicles, and beyond.
It’s pretty clear in 2020 that AI will play a big role in the future of tech. So which AI stocks are worth watching? No doubt, there are plenty of players … but they’re far from equal.
Read on to uncover some of the best artificial intelligence stocks for your watchlist!
Disclaimer: These stock picks are not recommendations to buy. These picks are a means to help you build your own list of artificial stocks to watch. As always, do your due diligence! Trading stocks is hard and takes dedication, education, and preparation. Never risk money you can’t afford to lose.
Table of Contents
- 1 List of 10 Hot Artificial Intelligence Stocks to Watch in 2020
- 1.1 Micron Technology Inc. (NASDAQ: MU)
- 1.2 Tencent Holdings Ltd. (OTCPK: TCEHY)
- 1.3 Baidu Inc. (NASDAQ: BIDU)
- 1.4 International Business Machines Corp. (NYSE: IBM)
- 1.5 Salesforce.com Inc. (NYSE: CRM)
- 1.6 Facebook Inc. (NASDAQ: FB)
- 1.7 Amazon.com Inc. (NASDAQ: AMZN)
- 1.8 Microsoft Corp. (NASDAQ: MSFT)
- 1.9 Alphabet Inc. (NASDAQ: GOOGL)
- 1.10 Nvidia Corp. (NASDAQ: NVDA)
- 2 How to Find Up-and-Coming AI Stocks
- 3 Conclusion
- 4 One Platform. One System. Every Tool
List of 10 Hot Artificial Intelligence Stocks to Watch in 2020
With the SteadyTrade Team, we focus on predictable patterns on small companies more than the big companies we list here. That said, we’re all about education. And news about one of the bigger AI stocks could lead to sympathy plays. Remember to do your homework.
Now, here are 10 AI stocks to watch, in no particular order…
Micron Technology Inc. (NASDAQ: MU)
Micron Technology is a leader in memory chips, and this company’s hardware is essential for AI applications. Its business is based on commodities, namely DRAM and NAND flash memory.
So as demand for its chips to power AI increases, so could Micron’s bottom line and stock price.
After a large sell-off in 2018 and small gain through 2019, it got crushed by the 2020 coronavirus sell-off. This artificial intelligence stock’s price dropped by nearly half to its 2019 support of around $30.
Its former all-time high of just over $60 was in 2018. MU tested that pre-pandemic. As of mid-July, its price hovered around $50. While it’s come a long way, it hasn’t fully recovered after the market crash. This stock could break out.
Tencent Holdings Ltd. (OTCPK: TCEHY)
Tencent is a tech conglomerate that owns multiple social media services including WeChat. WeChat supports a number of internet services on one platform — from email to ride-sharing.
This Chinese company has made incredible advances in AI technology. Tencent has recruited from rivals like Microsoft and Baidu to beef up its AI division. Having AI onboard such an expansive platform could be a benefit to the company going forward.
Tencent sold off most of 2018 and went sideways through 2019. After a brief 2020 pandemic sell-off, it regained strength. Its stock price blasted to new highs as of late June. It broke over its former all-time high and is trading for about $70 as of mid-July.
Baidu Inc. (NASDAQ: BIDU)
Baidu provides China most of the services Alphabet provides to the world. That’s because government restrictions prevent Alphabet from entering the Chinese market. Baidu is taking AI seriously, from search to voice assistant technology.
It received major backing from the Chinese government. These contracts give Baidu a competitive advantage and a lucrative income stream. Now it’s the main player developing AI technologies for all of China.
After a large sell-off in 2019, Baidu’s struggling to climb back to those highs. The 2020 pandemic plunged this AI stock price lower. The stock price is around $120 as of mid-July.
International Business Machines Corp. (NYSE: IBM)
IBM has made strides in AI since the 90s, with its Deep Blue computer defeating the world’s top chess champion. More recently, its Watson computer won against top trivia contestants. Now, it uses that power and insight to deliver AI assistants for business, finance, and healthcare.
IBM also boasts an impressive dividend yield of 5.6% for investors.
After a large sell-off in 2018, IBM can’t quite climb back to those highs. After a solid start to 2020, the pandemic market crash smacked it back down. Its price hit about $120 as of mid-July.
Salesforce.com Inc. (NYSE: CRM)
Salesforce offers Software-as-a-Service (SaaS) to companies. It uses AI to deliver leads and optimize customer service. Its Einstein software and recently acquired Bonobo AI leverages AI to help companies find and convert leads.
As more companies use Salesforce to improve their bottom line, the more this artificial intelligence stock could grow.
In 2019, CRM had a modest rally of 18%. And, not too surprising, it was set back by this year’s sell-off. As of mid-July, it’s trading for over $180 — just below pre-pandemic highs. This stock is currently consolidating around that level.
Facebook Inc. (NASDAQ: FB)
Facebook has made major AI strides. AI has helped FB improve its feed with machine learning and targeted ads. It’s now using its AI to categorize and filter posts. It’s using technology like deepfake detection and object identification in videos.
Facebook aims to use its vast platform to become a top artificial intelligence stock and leader.
But not even FB was immune to the pandemic panic. While it had a stellar 2019 rally of 56%, it was slammed with the rest of the market. As of mid-July, it’s rocketed to new highs of over $230, where it’s consolidating.
Amazon.com Inc. (NASDAQ: AMZN)
Amazon uses AI in its product search and its overall business to find inefficiencies and cut costs. AI powers its Alexa voice assistant and Amazon Web Services. This leading FANG stock is investing more resources into expanding its AI capabilities.
So how’s this artificial intelligence stock faring? After a mostly sideways 2019, AMZN experienced stellar growth following the pandemic sell-off.
The increased demand for online shopping is driving that growth. It rocketed 57% above its pre-pandemic high to over $3,000 as of mid-July. Could this stock still have room to rip, or is it overextended?
Microsoft Corp. (NASDAQ: MSFT)
Microsoft is one of the leading companies investing heavily in AI technology. Its ubiquitous cloud computing service Azure uses AI tools for medicine, language, and robotics.
This software finds efficiencies for companies and integrates them directly into Windows. Microsoft also boasts a solid dividend yield of 1% for investors.
After a stellar 2019 rally of 55%, Microsoft dropped back down to its 2019 support of just over $130 after the crash. As of late July, it’s up to new highs of over $200. It could go more, but we’ll have to watch and see…
Alphabet Inc. (NASDAQ: GOOGL)
You can’t talk about artificial intelligence stocks without mentioning Alphabet. Google’s parent company is like Microsoft in that it’s ubiquitous. It also has a vast data set and targeted ads like Facebook.
Add the world’s top search engine to boot, and this makes Alphabet a heavyweight in the AI department.
Alphabet leverages AI in all its products to make both the user and advertiser experience seamless. It also uses it to filter out spam and to show users more relevant ads. To enhance this capability, Alphabet launched Google AI for further research and development.
This company knows having a lead in AI today can pay massive returns tomorrow. Investors and traders pay attention to that. Alphabet strives to be way ahead of its rivals.
After a solid 2019 rally of 28%, Alphabet wasn’t immune to the pandemic sell-off. Its stock price plunged to its 2019 support of just over $1,000 per share. As of mid-July, it rebounded to new highs just over $1,500.
Nvidia Corp. (NASDAQ: NVDA)
Nvidia is the leader in graphics processing units (GPUs), originally designed technology for general computing. It’s used its capability for parallel processing to branch out into artificial intelligence.
Now its GPUs have become an AI data center standard, powering everything from machine learning computers to healthcare imaging to autonomous vehicles. Major AI players on this list, like Amazon and Alphabet, continue to buy Nvidia’s GPUs for their own AI development.
Nvidia also boasts a small dividend yield of 0.17% for investors.
The stock had a large sell-off in 2018 and slowly ground up for most of 2019. But Nvidia finally caught its headwind near the end of 2019. The pandemic sell-off was merely temporary for this artificial intelligence stock. It’s rocketed to new highs and trades for over $400 as of mid-July.
Artificial Intelligence is an exciting new sector with plenty of potential. We’re just getting started with this incredible technology.
How to Find Up-and-Coming AI Stocks
You don’t have to be a super genius or computer scientist to find artificial intelligence stocks. You just need the right tools and education to find the best setups.
It’s crucial to make a watchlist, create a trading plan, and maintain a trading journal. This helps you to refine and improve over time. You will make trading mistakes — what’s important is that you learn from them.
No one knows when AI stocks will become crazy hot. But when the sector starts running, its momentum will be tough to stop. More and more traders and investors will see the potential and jump on the bandwagon.
Keep an eye on artificial intelligence news for new developments. We developed the Breaking News chat feature just for this purpose. See how two skilled stock market pros can help you find the news with the most potential to move stocks. Here’s where you can learn more and sign up TODAY.
These are the heavy hitters of artificial intelligence stocks. There’s so much room for growth in this sector … The technology is still in its infancy. And that will bring more promising AI penny stocks to trade.
Today, your smartest AI move is to start by watching these stocks. And it’s only that — a starting point. This list of stocks to watch is NOT a recommendation to buy … It’s a guide to help learn to spot those big movers and hot opportunities.
In our SteadyTrade Team trading community, we focus on hot sectors and smart trading. With the right trading education, you can be primed to find the best artificial intelligence stocks when they start to run. But you gotta be prepared.
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What do you think about trading artificial intelligence stocks? Comment below, I love to hear from all my readers!