2 Top AI Stocks for Tech Growth Investing

Find out why BlackBerry (TSX:BB)(NYSE:BB) and one other top tech stock could multiply an investment in artificial intelligence.

| More on:
Businessman holding AI cloud

Image source: Getty Images

Investing in artificial intelligence (AI) has taken on a similar type of momentum as broader tech stocks and pre-legalization cannabis. AI is profoundly different from any other industry, though. For one thing, AI is still very much in its infancy. On the outside, we’re still at the chatbot stage, with more powerful AI providing security duties in the background. But the future could hold much, much more.

This makes AI fundamentally different from cannabis, for instance, which is itself an already tangible and fully realized product. AI is different from other tech areas, too, since most tech industries (even still-growing ones) are also already fleshed out. Of course, new ways of doing the same old things are still gathering steam. Consider e-commerce, or the hunt to replace lithium in electric vehicle batteries.

But AI, in its fully realized form, won’t resemble any of those products or services. Its applications would be endless, and the effect it would have on society would be epoch-changing. All this, and there are still reasonable entry points for long-term growth investors. Let’s explore two options.

The AI super-company of the future?

I’ve written about the scope for NVIDIA (NASDAQ:NVDA) investors to clean up from exposure to the gaming industry. Two years ago, I wrote, “As the world knuckles down for what could be a bumpy ride economically, cheap entertainment that can be had in the comfort of one’s own home is likely to be a big growth sector.” But NVIDIA also satisfies an AI growth thesis.

Back then, that semiconductor-based thesis was enough to make NVIDIA look like a solid play for the esports boom, itself a multi-billion-dollar industry. But NVIDIA recently laid the groundwork for the acquisition of U.K. processor designer Arm for a cool US$40 billion. This puts NVIDIA on track to becoming the “world’s premier computing company for the age of AI,” as per Arm’s press release.

In that same release, Simon Segars, CEO of Arm, touched on just how profoundly AI will affect the future: “Arm and NVIDIA share a vision and passion that ubiquitous, energy-efficient computing will help address the world’s most pressing issues from climate change to healthcare, from agriculture to education.”

A repurposed tech stock full of growth potential

BlackBerry (TSX:BB)(NYSE:BB) has picked up its own growth-focused fan base based around its standing in the cybersecurity field. But what was once best known as an Apple adjacent pick is now also a top play for AI investors. Fast forward to the present day, and products such as the AI-powered BlackBerry Cyber Suite make BlackBerry a key stock for exposure to this high-growth industry.

BlackBerry stock is also pandemic friendly. Products such as Cyber Suite help ensure secure access to data and apps. Such cybersecurity products aim to ensure digital safety in a remotely stationed workforce utilizing a BYOD (bring your own device) culture. And thinking longer term, the remote-working business model may turn out be less ephemeral than the social-distancing measures that necessitated it.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. David Gardner owns shares of Apple. The Motley Fool owns shares of and recommends Apple and NVIDIA. The Motley Fool recommends BlackBerry and BlackBerry.

More on Tech Stocks

Choose a path
Tech Stocks

Is Ripple Primed for 100% Growth in 2022?

From an investment perspective, most cryptocurrencies seem similar. Almost all of them seem volatile, and while some get more limelight …

Read more »

Tech Stocks

Tech Crash: 2 Tech Stocks Analysts Have Sliced in Half

The TSX has continued to wax and wane over the past week. After a huge fall on Monday, shares started …

Read more »

Hand holding smart phone with online shop concept on screen
Tech Stocks

Shopify Stock Selloff: Could it Turn Around in February?

Shopify (TSX:SHOP)(NYSE:SHOP) continues to be one of the worst-affected stocks amid the ongoing market selloff. After posting its worst weekly …

Read more »

analyze data
Tech Stocks

TFSA Investors: Is the Tech Crash Over?

It’s been a hard time for Tax-Free Savings Account (TFSA) investors already in 2022. Almost immediately after ringing in the …

Read more »

value for money
Tech Stocks

4 Cheap TSX Stocks to Buy Under $50

The recent selloff in equities has led to a sharp pullback in high-quality TSX stocks. Many of these Canadian stocks …

Read more »

edit U-turn
Tech Stocks

2 Canadian Growth Stocks That Could Rebound Nicely From Here

Finding top growth stocks has been a winning strategy over the past decade. Many have posted life-changing returns over a …

Read more »

edit Sale sign, value, discount
Tech Stocks

Tech Stock Crash: Time to Buy 2 Stocks at Bargain Prices

After an incredibly strong year in 2021, the Canadian market is off to a rocky start this year. The S&P/TSX …

Read more »

Retirement plan
Tech Stocks

Should You Have These 3 Tech Stocks in Your Retirement Portfolio?

Tech tends to be one of the most dynamic sectors in the stock market, thanks to the rapidly changing nature …

Read more »