Artificial intelligence is used by companies in two ways. Many technology companies employ AI to improve the performance of their present processes, such as robotics, self-driving cars, and virtual assistants.
Recently, OpenAI’s ChatGPT demonstrated how far “generative AI,” a branch of artificial intelligence capable of generating words, images, sounds, and thoughts, has progressed. Such massive language models have immense potential.
Some businesses earn directly from AI by selling hardware, software, services, or knowledge required by the technology. These are genuine artificial intelligence stocks, such as those listed and discussed below.
Perhaps no corporation uses AI more extensively than Amazon (NASDAQ:AMZN). Jeff Bezos, Amazon’s founder and executive chairman, has been a vocal supporter of AI and machine learning. Although Amazon began as an online store, technology has always been at the heart of the company.
Amazon now employs artificial intelligence in everything from Alexa, its industry-leading voice-activated technology, to Amazon Go cashierless grocery stores and Amazon Web Services Sagemaker, a cloud infrastructure tool that deploys high-quality machine learning models for data scientists and developers.
Amazon’s e-commerce operation is likewise based on AI, as algorithms power its top-tier e-commerce, movie, and music streaming recommendation engines. Amazon is also using AI to calculate product rankings.
Even Amazon’s logistics operations benefit from AI, which aids in scheduling, rerouting, and other methods of improving delivery accuracy and efficiency. Drone deliveries, which the firm has long desired to develop, would be another AI use for the tech behemoth.
The influence of AI on Amazon’s business is difficult to quantify, but it is definitely a major component of the company’s competitive advantage. Amazon has been at the vanguard of emerging technologies such as e-commerce, e-books, cloud computing, video streaming, and voice-activated technology throughout its existence. AI supplies a large portion of the infrastructure that enables the organization to enter new markets rapidly and effectively.
Nvidia (NASDAQ:NVDA) is another of the top artificial intelligence stocks to watch. The world’s leading graphics processor maker has benefited from the AI boom with its graphics cards becoming the de facto standard in data centres around the world. The training phase of machine learning requires a lot of computational resources; the inference step requires less. Both phases are highly supported by graphics processing unit (GPU) processors, which are primarily utilized for rendering video games.
Nvidia’s data centre sector is continuously expanding its percentage of overall revenue and will surpass its gaming section in revenue in fiscal 2022. This market isn’t solely focused on AI; Nvidia’s graphics cards are utilized to speed up a wide range of data centre applications. However, AI is one of the driving drivers behind the company’s expansion.
Its processors are popular for demanding workloads required by applications such as huge language models. Notably, the business just announced a new set of inference platforms tailored exclusively for generative AI.
Another area of emphasis is self-driving cars. Nvidia creates systems, which include both hardware and software, that can enable both driver-assist features and completely autonomous driving.
A self-driving car must collect huge volumes of data in real time from various sensors and cameras, detect items like pedestrians and other vehicles, and make sophisticated judgments. They necessitate a massive amount of computational power, which Nvidia’s technology provides.
Its professional visualization division, which includes its omniverse, has significant AI potential.
Nvidia’s graphics cards may be overtaken by more specialized CPUs developed for AI in the future, but for the time being, the company is in an enviable position.