6 Best Artificial Intelligence Stocks to Watch

The world is now armed with algorithms, and data is the ammunition for the digital world.

Citizens around the globe don’t always get to opt in or out of this digital world – even when they are not actively participating in it, most people are still passively involved in the digital world. Data and the algorithms that feed upon the data are shaping our future and changing the way we look at and interact with the world. 

As a market participant, however, you are in a unique position where you could capitalise on the ongoing developments in Artificial Intelligence (“AI”).

What are AI Stocks?

AI stocks refer to the shares of companies that are involved in the development, integration, or use of artificial intelligence (AI) technologies. 

These companies might design algorithms, build AI-driven products, or use AI to enhance their services. As the AI space growings in importance and adoption, investors may view these stocks as an opportunity for future growth. Just like stocks in any other sector, the performance of AI stocks can vary based on factors like market demand and overall economic conditions.

AI State of Affairs 

AI, a field of study that seeks to teach computers by allowing them to learn from experience, has existed for over six decades. However, its day-to-day impact can only be felt in today’s society. 

According to a report by PWC, AI has the potential to boost the global economy by a staggering $15.7 trillion USD by 2030 ^[1]. This massive growth can be broken down into $6.6 trillion USD from heightened productivity and another $9.1 trillion USD from consumer-driven effects ^[2]. Although AI adoption varies across industries and regions, it’s predominantly in its infancy.

How Do Companies Use AI Technology?

Companies and businesses can utilise AI technology to help streamline workflow, and more. Here are some examples of AI technology usage:

1. Enhanced Customer Experience

Companies deploy AI-powered chatbots and virtual assistants to provide real-time responses to customer queries, thereby enhancing the user experience. These tools can handle a wide variety of tasks, from answering frequently asked questions to guiding users through complex processes.

For example, banks can use AI chatbots on their websites and mobile apps. When a customer has a question about their account or how to perform a particular transaction, the chatbot can provide instant answers, reducing the need for the customer to call customer support or make a trip to visit the bank branch to solve their problem.

2. Data Analysis and Decision Making

AI algorithms can be used to analyse large sets of data, identifying patterns and predicting future trends at a speed quicker than humans. By processing this information, businesses are able to understand their customers better and help to optimise their business operation while identifying new opportunities.

Business owners can use AI to analyse customer purchase data and customer behavior during their website visits to predict which products will be popular in the upcoming season. Based on this analysis, they can adjust their stock levels, marketing strategies, and promotions accordingly.

3. Automation and Efficiency

Companies implement AI-driven automation to handle repetitive tasks, streamline workflows, and reduce human error. This not only enhances efficiency but also allows employees to focus on more strategic, high-value tasks.

In manufacturing, companies use AI-powered robots to handle tasks such as product assembly, quality control, and packaging. These robots can work around the clock without fatigue, ensuring consistent product quality and faster production rates.

6 Best AI Stocks to Watch

Here are a few AI stocks to consider for your portfolio:

Nvidia Corporation (NASDAQ:NVDA)

The American tech powerhouse, Nvidia, is globally recognised for its pioneering work in graphics processing units (GPUs) and AI technologies. It has carved out a dominant position in the gaming industry and is rapidly expanding into the realms of data centers and automotive AI solutions. 

For Q3 of fiscal 2025, Nvidia showcased remarkable progress ^[3]: 

• Nvidia reported a record quarterly revenue of $35.1 billion, a 17% increase from Q2 and a 94% rise Y-o-Y. 

• Additionally, its data center segment recorded revenue of $30.8 billion, up 17% from Q2 and 112% from a year ago. 

DeepSeek ^[4,5] 

Although the China-based company DeepSeek is not yet listed on the stock exchange, it is already making significant waves in the AI industry, challenging established tech giants. This relatively unknown AI lab has developed a large-language model that outperforms leading models from Meta, OpenAI, and Anthropic, using less powerful and more cost-effective hardware. 

DeepSeek’s recent release of a reasoning model, DeepSeek-R1, which boasts 671 billion parameters and surpasses OpenAI’s latest offering in several benchmarks, has everyone talking. The model’s performance has not only shaken Silicon Valley but also caused a significant stir on Wall Street, with tech stocks reacting to the news – Nvidia lost nearly $600 billion in market value, Nasdaq down more than 3%, Dow falling near 300 points, and the S&P 500 tumbled almost 1.5%  

DeepSeek’s app even hit the top spot on the Apple App Store, pushing OpenAI’s ChatGPT into second place 

C3.ai Inc

C3.ai Inc is at the forefront of enterprise AI solutions, delivering scalable and customisable applications for a wide range of industries. Its strength lies in its cloud-based platform that facilitates rapid development of AI-driven applications, making it a go-to choice for businesses seeking digital transformation.

For Q2 of fiscal 2025, C3.ai Inc recorded a strong earnings report ^[6]: 

• Total revenue for the quarter was $94.3 million, an increase of 29% compared to $73.2 million one year ago. 

• Their subscription revenue was $81.2 million, constituting 86% of total revenue, an increase of 22% compared to $66.4 million last year. 

Symbotic Inc (NASDAQ:SYM)

Symbotic Inc is a frontrunner in the field of automation and robotics solutions. 

Recognised for its advanced warehouse automation systems which, the company provides a blend of proprietary software and hardware, making supply chains more efficient and sustainable. 

Its competitive edge lies in its innovative solutions which cater to a wide range of industries, from retail to manufacturing. The company is reinventing warehouse automation for increased efficiency, speed and flexibility.

For the fiscal year 2024, Symbotic Inc reported earnings as follows ^[7]: 

• Symbotic posted revenue of $577 million, net income of $28 million and adjusted EBITDA1 of $55 million for the fourth quarter of fiscal 2024. 

• For the full fiscal year 2024, Symbotic reported revenue of $1,822 million, reflecting 55% growth year over year, a net loss of $51 million, and adjusted EBITDA1 of $96 million. 

Alphabet (NASDAQ:GOOGL)

Alphabet is the company behind Google  — a top tech giant globally. Besides its main search engine, it offers many digital services, from cloud computing to artificial intelligence. 

Alphabet also owns Waymo, which is working on self-driving cars. Additionally, they have a subsidiary, Verily Life Science, which uses AI to study large amounts of medical data with a goal to find new treatments and cures for diseases.

Google parent Alphabet announced Q3 earnings for fiscal year 2024 as follows ^[8]: 

• The third quarter reported revenue of $88.27 billion, growing 15% year over year, which is stronger than the same quarter last year. 

• The company reported blowout cloud revenue at $11.35 billion, up nearly 35% from the $8.41 billion a year ago. 

IBM (NYSE:IBM)

IBM, or International Business Machines, has been a stalwart in the technology sector for over a century. Renowned for its enterprise solutions, cloud computing, and quantum computing endeavors, the company has consistently evolved to stay relevant in an ever-changing tech environment. 

The company’s breakthrough innovation, such as Watson, is a set of AI assistants that will help accelerate the impact of AI to businesses. Through its commitment to AI-first initiatives, IBM has been reinventing enterprise solutions to empower businesses with predictive insights, automation, and data-driven decision-making tools.  

IBM released Q3 earnings for fiscal year 2024 as follows ^[9]: 

• Revenue of $15.0 billion, up 1%, up 2% at constant currency. 

• Software revenue is up 10% compared to the previous quarter. 

Final Thoughts

In conclusion, investing in AI sectors comes with high risks, but there are macroeconomic factors that point to future upward price movement. You are encouraged to learn about the market, practise in the demo account, and develop a solid risk management approach, before making a commitment to invest or trade. Also, you should always do your own research and only invest in what you understand and are comfortable with.

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