Listen up, investors! Artificial intelligence (AI) is like the quarterback of the tech world. He can analyze games, predict outcomes, and make decisions faster than any human ever could.
Think about it: with AI on your team, you have the power to analyze data and make better business decisions, streamline processes, and even create new products and services that were previously unimaginable.
And just like a good quarterback, the AI never tires, never makes mistakes, and is always ready to take the field. So let’s go ahead and find companies that dominate the business game with top-notch artificial intelligence. Here are three great examples, like a fullback running into the guts!
Alphabet
ParentGoogle Alphabet (GOOG -0.37%) (GOOGL -0.66%) has a long history of building and using AI tools. The first example is Google Translate, which has been a staple tool on mobile phones since 2010.
But Alphabet is just getting into the game, with lofty goals. For example, it recently acquired Prezi to develop “presentation software” and also purchased DeepMind, an AI company that developed the world’s first computer program for successfully playing a video game.
These days, artificial intelligence tools are part of almost everything Alphabet does. In the long run, this should help the company increase its profits while offering more products and services. After all, an important aspect of AI is that it can be used in many businesses and industries. Beyond Google Translate, AI applies to Google’s other core business areas: ads, maps, and search.
Alphabet also has a strong presence in areas where companies are looking for AI applications. For example, some of its products are smart fitness trackers that detect strokes and heart attacks. And all of this is part of a long-term vision.
“Google’s mission is to organize the world’s information and make it universally accessible and useful,” wrote Google Fellow Jeff Dean on the company’s Artificial Intelligence Hub. “AI helps us do this in exciting new ways, solving problems for our users, our customers, and the world.”
This vision makes Google an early leader in the AI race, giving you another reason to add the parent company’s stock to your portfolio. Here’s another: After falling 37% over the past year, Alphabet shares are trading at some of the lowest price-to-earnings ratios in a decade. So you get an outstanding AI stock at a fantastic price.
Palantize
Palantir Technologies (PLTR -1.57%) creates special software that helps people and organizations make sense of many types of data. Sometimes the data can be very confusing or difficult to understand, especially when there is a lot of it. But Palantir’s tools can help people see patterns and connections in data, and even make predictions about what might happen in the future.
All this is possible thanks to artificial intelligence. Palantir’s software uses AI to help people make better decisions and solve problems based on collected data. The company’s customers include many types of organizations, such as hospitals, governments, and banks.
Palantir’s business is fairly healthy, even in the economic downturn of 2022. In last month’s third quarter report, revenue grew 22% year over year despite a significant negative impact from trends in currency conversion. In particular, domestic commercial customers increased their Palantir orders by 53%. Adjusted free cash flow has been positive in each of the last eight earnings reports.
So Palantir management sees opportunity for growth in a struggling economy. The idea is that this company’s AI-powered tools can add value to customers’ business operations, making Palantir’s products and services even more necessary when budget belts are tight.
At the same time, the stock is trading near all-time lows. If you’ve been keeping your fingers on Palantir because the stock was too expensive, now might be a good time to take a second look at this robust growth stock.
Nvidia
Nvidia (NVDA -2.25%) designs computer graphics processing units (GPUs). These chips specialize in fast and efficient processing and rendering of images, videos and other visual data. They are used in a wide range of applications, including games, professional visualization and artificial intelligence. Nvidia’s products are used in laptops, desktops, servers, and other devices to improve their graphics processing and overall performance.
The company uses AI to develop products and technologies that can help computers and other devices think and learn in more human ways. This includes the development of GPUs and other hardware purpose-built to efficiently run AI algorithms, as well as software and tools that enable developers to build and deploy AI applications.
Nvidia’s artificial intelligence products and technologies are used across many industries to help businesses and organizations make better decisions and automate tasks. For example, Nvidia’s artificial intelligence platforms could be used in a self-driving car to help it recognize and react to objects and events in its environment, or in a hospital to help doctors analyze images. medical procedures and to establish more precise diagnoses.
Palantir and Alphabet address the AI market with computer-based data analysis tools. Nvidia flips the script and provides the silicon brains for these AI systems. There’s a place for both sides of the AI story in any forward-thinking investor’s arsenal.
This AI stock may seem expensive at 70 times earnings and 14 times sales. Still, many investors see great value in Nvidia because of its skyrocketing sales and high profit margins. Additionally, the stock price is down 51% from all-time highs in November 2021. Buying Nvidia today is a bet on continued high-octane growth for years to come. On the way to that bright future, mismanagement or tough market conditions could drive Nvidia shares further down, at least for a while.
It’s not every investor’s cup of tea, and I understand if you’d rather watch Nvidia from the sidelines for now. But chances are the stock will never be so cheap again. Recurring purchases by fixed sums your way to Nvidia might be the most comfortable way to act on this volatile stock.
So there are my top three AI actions for the end of 2022. Stay focused on the value of AI-powered data analytics, stick to the long-term game plan, and give it your all. Whether you pick one, take all three, or skip them all and find your favorite AI investments in this market, I hope you learned something valuable from the game plan I shared. here.
Let’s execute this plan to perfection and walk away with profitable AI investments.
