5 Artificial Intelligence Stocks to Buy to Protect Your Future

Posted on June 4, 2021 |

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5 Artificial Intelligence Stocks to Secure the Future

In this video, I’m starting a series of videos that is going to put you in front of some of the biggest trends of the future!

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More and more investors are getting into the artificial intelligence wave. AI seems to be getting more attention as they give massive emphasis on the multiple facets of tech. The AI technology is the future because they are pro innovation and looks forward to improving products for heightened efficiency and convenience. That is also why AI stocks are becoming the trend right now and considered as prominent growth sectors. Consumers and investors are impressed day by day at how AI enables and empowers the most of the cutting-edge tech globally.

We might be curious as to what exactly is AI? Well, AI makes everything seamlessly smooth and efficient because smart machines like computers are able to learn from observable data through it. Brilliant, right? It supports data analytics alongside fraud detection and security surveillance, and aids in performing intellectual tasks such as problem solving, perception, understanding human communication and makes decision making effortless. Hence, the global AI market is expected to grow into billions of dollars of stock market value in the next five years.

A Look on the ARK Invest Big Ideas Report

A couple of weeks ago, I got ahold of the ARK Invest Big Ideas report, a 112-page research report from Cathie Wood and the team over at Ark Invest on the 15 life-changing trends they’re following.

Now I love the report, tons of research here…but not so much for suggestions on which stocks to buy. For example, the first eight pages is on deep learning and the trend in artificial intelligence which companies are primed to take advantage of this phenomenon.

So over the next few months, I’m going to dig deep into these 15 disruptive trends, show you that research, help you analyze it and then reveal the top stocks to buy in each!

Deep Learning and Artificial Intelligence as Key Factors

And I love this first section on deep learning and the growth in artificial intelligence! Up until just recently computers have been largely controlled by people. All the coding and instructions had to be written up by a programmer…but now, we’re getting into the era where AI is able to write its own code, software is being created by deep learning to enable self-driving, drug development…this is something that is going to touch every industry out there!

The Future of Deep Learning and AI

Ark estimates that deep learning and artificial intelligence could create over $30 trillion in equity market value over the next two decades…that’s more than twice the amount internet stocks have added and 15-times what AI stocks are worth right now!

And what I really like about investing in this theme, looking for these artificial intelligence stocks, is this is like my future income protection. These are the companies and the AI that might someday put me out of a job.

I know it’s not something people like to think about but we’ve already seen computers put a lot of people out of jobs and I can’t be ignorant to the fact, it could happen to me…it could happen to any of us. So why not profit from the companies that will benefit even if you lose your income?

Looking for stocks in that artificial intelligence trend, we can start here using the discover feature on Stockcard.io and the drop-down search feature works really well for this. I can start typing in a theme, so here I’ll type in artificial intelligence, and it finds not only the stocks with AI in the name but also a list of the stocks in that theme.

Here I see a collection for Artificial Intelligence stocks and there are 71 stocks here I can look at to begin my research. I see the big names like Intel and Amazon but also the undiscovered picks that might be a better return as the market catches up with the theme.

And clicking on any of these shows me all the ratios and analysis broken down into these cards for growth potential, operations, stock performance and valuation.

Sign up on Stockcard for free and make stock-picking easy with the research tool I use! Use promo code: bowtienation for an exclusive discount!

The Top 5 AI Stocks to Buy to Protect Your Future

For these top five AI stocks, I want to target the less well known companies, those smaller upstarts focused on artificial intelligence…but I also believe you need a couple of those big dogs in the space. Nation, big tech development costs big money so it helps to have the deep pockets of the mega-tech names in your portfolio as well.

And our first stock pick is so AI, it’s got it in the name! C3ai, ticker AI, just had its IPO in December and saw a 120% pop on the $42 offer price. It’s now trading at $147 a share, a little pricey at 60-times on a price-to-sales basis but the company is a first mover in the AI software-as-a-service market.

C3 provides software other companies can use to create their own AI applications as well as its custom AI creation service. Customers include big names like RDS Shell, drug-maker AstraZeneca and even the U.S. Air Force.

The company estimates a total addressable market of $271 billion by 2024, about 12% annualized market growth from an already massive $174 billion market last year. C3 grew sales by 71% last year and has a long runway for growth in that market share.

As more companies realize the power of creating their own programs in artificial intelligence, how C3 is able to drive return on investment for that software, I think this could be a 5- or 10-times multiple on your money.

Next here is data analytics provider, Splunk Inc, ticker SPLK, and this is another software-as-a-service leader

Splunk helps other companies collect and analyze their data and derive insights in everything from operations to IT and security. It uses machine learning to improve its own service as well as offering that power of artificial intelligence in its software to customers.

The company is quickly becoming THE leader in data analytics with 90% of Fortune 100 companies using Splunk’s platform. Management estimates the addressable market at $114 billion by 2023 and even after 30% revenue growth last year, it’s still only at 2% of the market share so lots of room to grow here.

Now just like C3, shares are a little pricey here at 12-times on a price-to-sales basis but have actually come down recently and with that 30% annual growth, this could be a great long-term return.

This next AI stock is my favorite and one I’ve owned for a while, $214 billion Salesforce.com, ticker CRM.

Those of you in the nation have heard me talk about Salesforce and you’re going to see it pop up in quite a few of these Big Ideas videos because the company is already developing itself as a leader in not only AI but digitization, cloud solutions and remote work.

CRM started as a customer relationship software company but has really expanded into a conglomerate of cloud-based solutions in marketing, data analytics and sales. It’s estimating a total addressable market of $175 billion by 2025 and booked 28% sales growth last year to $17 billion.

In artificial intelligence, the company offers its Einstein AI software in the customer platform for dynamic pricing, a profit-optimizing system that is constantly learning. The company also is in AI data analytics with its 2019 Tableau Software acquisition and gets the remote messaging predictive software used by Slack when it closes that acquisition.

And what I really like about Salesforce, besides having a hand in all these big themes we’re going to be talking about is that it can use that ecosystem to draw a customer in and then cross-sell them into everything.

Shares are relatively cheaper at 10-times on that price-to-sales basis and this is one of the few with an average price target above the current share price. Analysts have an average target of $274 each over the next year, about 17% above the current and higher over the long-term.

The largest company in our list of AI stocks, $1.4 trillion Alphabet, ticker GOOG, the parent company of Google.

Google just reported a massive quarter with shares jumping 7% on the news of a rebound in ad revenue as well as progress in its cloud services. To put that in perspective, the company’s market cap grew by over $100 billion in a single day on its Q4 earnings.

The company has been investing heavily in AI for more than a decade with speech recognition and the search feature just the most obvious. It’s also a leader in self-driving with its Waymo unit and has all the data in the world from that search segment…so I expect Google to turn a lot of its ‘other bets’ investments into big money over the next few years.

What’s really amazing is the fact that Google has been able to keep up this level of sales growth even on $160 billion in annual revenue, the company was able to grow sales by 18% last year.

Our sleeper AI stock is IBM and what could be a catalyst for the stock this year.

The company has been in AI development for decades, first with Deep Blue and then Watson and more recently with its hybrid cloud-AI model.

Management sees a trillion-dollar opportunity in that hybrid cloud model and despite sluggish sales from the legacy infrastructure segment, the Red Hat business is booming.

And the shares could see a catalyst for growth in the proposed spinoff later this year. The company will split with IBM keeping cloud and artificial intelligence and then investors getting shares of the new company as well which will continue the infrastructure segment.

IBM trades for just 1.5-times sales and nobody expects it to do much…which maybe that’s the best time to buy. The company has decades of R&D in artificial intelligence and could be ready to have it start paying off.

There you have it. Follow these and all the stocks in our 2021 Bow Tie Nation portfolio on Stockcard and I can tell you you're in it for the future. Here is the link: