Artificial Intelligence Stocks: Top 10 Best AI Companies

The surge in artificial intelligence has brought about numerous opportunities in the market, impacting various industries. As AI, automation, and robotics continue to evolve, companies embracing these technologies stand to benefit. Argus Research recommends the following 10 AI stocks for investment:

1. Microsoft Corp. (MSFT)

• Implied Upside Over Feb. 5 Close: 17.1%
• Overview: Microsoft significantly invested in ChatGPT maker OpenAI and integrated ChatGPT into Bing search. Ongoing investments in cloud services and AI position the company for long-term growth.
• Analyst Rating: Buy
• Price Target: $475

2. Alphabet Inc. (GOOG, GOOGL)

• Implied Upside Over Feb. 5 Close: 18.3%
• Overview: Google’s parent company, Alphabet, uses AI across its platforms, from ad pricing to Gmail spam filters. The introduction of the powerful AI model, Gemini, enhances its capabilities.
• Analyst Rating: Buy
• Price Target: $170

3. Amazon.com Inc. (AMZN)

• Implied Upside Over Feb. 5 Close: 8.6%
• Overview: Amazon integrates AI into various aspects, including targeted advertisements, marketplace search algorithms, and Amazon Web Services. The integration of generative AI into Alexa is expected to boost AWS growth.
• Analyst Rating: Buy
• Price Target: $185

4. Nvidia Corp. (NVDA)

• Implied Upside Over Feb. 5 Close: -13.5%
• Overview: Nvidia provides high-end chips essential for running advanced AI applications. The company experienced significant growth due to AI-related demand for its graphics processing units.
• Analyst Rating: Buy
• Price Target: $600

5. Meta Platforms Inc. (META)

• Implied Upside Over Feb. 5 Close: 19.7%
• Overview: Meta Platforms, formerly Facebook, is a leader in social media and online advertising. The company is developing a powerful AI system and testing various generative AI features across its platforms.
• Analyst Rating: Buy
• Price Target: $550

6. Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)

• Implied Upside Over Feb. 5 Close: 9.4%
• Overview: As the world’s largest semiconductor foundry, Taiwan Semiconductor manufactures advanced AI semiconductors for companies like Nvidia. The demand for high-end AI chips is expected to drive revenue growth.
• Analyst Rating: Buy
• Price Target: $130

7. Adobe Inc. (ADBE)

• Implied Upside Over Feb. 5 Close: 7.1%
• Overview: Adobe, known for creative content software, is expanding into AI. The Firefly generative machine learning model and application of Sensei AI to various products position Adobe for market expansion.
• Analyst Rating: Buy
• Price Target: $675

8. ASML Holding NV (ASML)

• Implied Upside Over Feb. 5 Close: 11.3%
• Overview: ASML produces photolithography systems crucial for semiconductor fabrication, especially for advanced AI chips. The company’s technology is considered essential for AI technology development.
• Analyst Rating: Buy
• Price Target: $1,000

9. International Business Machines Corp. (IBM)

• Implied Upside Over Feb. 5 Close: 22.7%
• Overview: IBM, a pioneer in AI, has been adapting its supercomputer Watson for various industries. Watsonx.ai, an enterprise-ready AI platform, positions IBM as an open AI innovator.
• Analyst Rating: Buy
• Price Target: $225

10. Arista Networks Inc. (ANET)

• Implied Upside Over Feb. 5 Close: 0.7%
• Overview: Arista Networks provides cloud networking solutions crucial for supporting intensive AI workloads. The company aims to achieve $750 million in annual AI networking revenue by 2025.
• Analyst Rating: Buy
• Price Target: $275

Note: All data is current as of February 5, 2024.