The artificial intelligence (AI) race is heating up in 2023, and stocks part of this disruptive vertical have delivered outsized gains to investors this year.
The launch of ChatGPT by Open AI in late 2022 fascinated millions of users. In fact, ChatGPT was arguably the fastest product to onboard 100 million users. Moreover, a report from Next Move Strategy forecasts the total addressable market for AI to touch US$2 trillion by 2030, up from “just” US$100 billion in 2021.
AI tools and products will be used across businesses and structures such as supply chain, marketing, and product development. The report also emphasized chatbots and image-generating AI will be the major trends that will drive demand for AI applications higher.
So, let’s look at some of the best AI stocks you can invest in right now.
The largest semiconductor company globally, Nvidia (NASDAQ:NVDA) is currently valued at a market cap of US$960 billion. NVDA stock is already up 170% in 2023 and recently touched a trillion-dollar valuation.
Nvidia is a leading provider of graphics chips that power its data centres. It takes a lot of computing power to maintain large language models and other machine learning platforms, increasing the demand for Nvidia’s portfolio of solutions.
Nvidia is also part of several other high-growth segments, such as gaming and autonomous driving, making it a top tech stock in 2023.
A SaaS (software-as-a-service) based company, Docebo (TSX:DCBO) operates in the enterprise-facing e-learning space. It leverages AI to customize training programs for companies, providing them with tools to upskill their employees.
Docebo uses AI to deep dive into the learning habits of employees and then provides them with curated content to enhance overall skill sets.
Down 60% from all-time highs, DCBO stock is priced at a discount of almost 50%, given consensus price target estimates.
Another TSX tech stock, Kinaxis (TSX:KXS), provides supply chain solutions to enterprises. It uses AI to automate business processes allowing its clients to reduce costs and optimize their supply chain.
Valued at a market cap of $5 billion, KXS stock has already returned over 1,000% to shareholders since its initial public offering in 2014.
VIQ Solutions stock
A software company, VIQ Solutions (TSX:VIQ), is a micro-cap company with massive upside potential. It provides digital content creation and content management services.
VIQ Solutions converts spoken words to written transcripts, which can accelerate the documentation process for various industries, saving companies a ton of time and money.
Analysts remain bullish on VIQ stock and expect shares to gain almost 600% in the next 12 months.
The final AI stock on my list is Microsoft (NASDAQ:MSFT), which is one of the largest companies in the world. Microsoft has invested US$10 billion in Open AI and recently launched a new version of its search engine Bing.
Microsoft is a well-diversified company with multiple billion-dollar revenue streams, such as public cloud and enterprise software. Its investment in Open AI has provided the tech giant with a first-mover advantage, resulting in a 40% increase in the share price this year.