Did you know the AI technology industry is forecast to be valued at $97.9 billion by end of 2023?
If you have been looking to invest in the fast-growing AI technology market, then now is the perfect time to explore your options.
But how do you choose the best one to invest in?
In this article, we’ll explore the criteria for selection and highlight the top 10 AI technology companies to invest in 2023.
Criteria for selection
When selecting an AI technology company to invest in, it’s important to consider several factors.
Firstly, the company should have a confirmed and tangible exposure to AI technology or a material investment in the area.
Secondly, the company’s performance in the first quarter of 2023 should be 15% or greater.
And finally, the company should have a strong financial standing and a promising future outlook.
Top 10 AI Technology Companies to Invest in 2023
1.
NVIDIA (Founded 1993)
- Leading California technology company specialising in designing and manufacturing graphics processing units (GPUs) for gaming, professional visualisation, data center, automotive markets and high-performance computing.
- Made significant investments in AI research and development, with NVIDIA Deep Learning being widely used in various industries – healthcare, finance, and autonomous driving.
- Publicly traded on the NASDAQ stock exchange as NVDA.
Financials & Growth Forecast
- 2021 market capitalisation of over $400 billion, making it one of the largest semiconductor companies in the world.
- Stock prices have grown tremendously in the past decade by over 4,000%.
- Overall, experienced significant growth and financial success in recent years thanks to its focus on developing high-performance GPUs and AI technology.
Partners
Several partner companies across different industries, including:-
- Amazon Web Services (AWS)
- Microsoft
- Autonomous Vehicle Partnerships
- Healthcare Partnerships
- Gaming Partnerships
2.
C3.ai (Founded 2009)
- Leading enterprise AI software provider for accelerating digital transformation. Company founded by Tom Siebel, who also founded Siebel Systems.
- C3.ai’s suite of products enables organisations to build, deploy, and operate AI applications at scale, providing solutions for various industries, including healthcare, energy, manufacturing, and financial services.
Financials & Growth Forecast
- Significant growth in recent years, raising over $500 million in funding, with a valuation of over $3 billion.
- Went public December 2020.
- Revenue been growing at a compounded annual rate of 49% over the last four years.
Partners
- Microsoft
- Intel
- Amazon Web Services (AWS)
- Baker Hughes (Oil & Gas)
3.
ALPHABET INC./GOOGLE (Founded 2015)
- Alphabet Inc. is an American multinational conglomerate that was created as a parent company to Google and several other previously owned subsidiaries. The company’s primary business is in Internet-related services and products, including search engines, advertising technologies, cloud computing, software, and hardware.
- Alphabet Inc. has been investing heavily in AI technology, with products like Google Assistant, Google Translate, and Google Search, among others.
- The company acquired DeepMind, a top AI research lab in the UK.
Financials & Growth Forecast
- 2020 reported total revenue of $182.5 billion, net income of $40.3 billion.
- Steady growth in its stock price, market capitalisation of over $1 trillion.
- Overall, very successful in both its financial performance and its investments in cutting-edge AI technology.
Partners
Several across various industries, including:
- Nest Labs
- Waymo
4.
IBM (Founded 1911)
- IBM is a New York multinational technology company that has played a leading role in the development of artificial intelligence since the 1950s.
- Responsible for many significant advancements in AI technology, including Deep Blue and the AI system Watson.
- Continues to push the boundaries of AI research and development to make AI more accessible and useful to people and businesses around the world.
Financials & Growth Forecast
- IBM is one of the largest and most successful technology companies in the world, with a long history of growth and financial success.
- 2021 market capitalisation of over $143 billion, making it one of the most valuable companies in the world.
Partners
Many partner companies across various industries, including:
- Adobe
- Apple
- Salesforce
- Walmart
- Red Hat
5.
MICROSOFT (Founded 1975)
- Microsoft is a New Mexico technology company, most famous for its operating system Windows.
- Been working on a number of AI-based technologies such as speech recognition, machine learning, and natural language processing.
- Released several AI products, chatbot Xiaoice and the virtual assistant Cortana.
- Made significant investments in AI research and development and established several AI-focused initiatives such as the Microsoft AI & Research Group, an AI lab, and a partnership with OpenAI to create new AI technologies.
- Overall, Microsoft is a leader in the AI industry and continues to innovate and develop new AI technologies.
Financials & Growth Forecast
- 2020 Microsoft’s AI revenue was approximately $10 billion, and this is projected to reach $126 billion by 2025.
- Invested $1.4 billion in AI-focused startups.
- Numbers indicate that there is significant growth potential for Microsoft’s AI division in the coming years.
Partners
Many across various industries, including healthcare, finance, and retail.
- Adobe
- Accenture
- Johnson & Johnson
- BMW
6.
PALANTIR (Founded 2003)
- Palantir is a Colorado software company that specialises in data analysis. They offer a platform that allows organisations to integrate, manage, and analyse large amounts of data.
- Their AI technology, called Palantir Foundry, is designed to help organisations identify patterns and insights in their data, enabling them to make more informed decisions.
- Palantir’s AI is used by a range of organisations, including government agencies, financial institutions, and healthcare providers.
Financials & Growth Forecast
- Palantir is a private company and does not publicly disclose financial information beyond what is legally required.
- Palantir’s revenue has been steadily growing over the past few years. 2019, the company reported revenue of $742.6 million, up 25% from the previous year.
- Valued at over $20 billion, making it one of the most valuable private tech companies in the world.
Partners
Palantir AI has several partner companies across different industries:
- IBM
- Airbus
- Merck
- BP
7.
INTEL (Founded 1968)
- Intel is a California multinational technology company that is known for designing and manufacturing cutting-edge computer hardware and software.
- Been at the forefront of AI development for many years and is constantly innovating in this field.
- Offers a wide range of AI solutions that cater to different industries such as healthcare, finance, and transportation.
- Committed to advancing the field of AI through research and development.
- Collaborated with various academic institutions and research labs to drive innovation in AI.
- Overall, Intel is a leading player in the AI industry, and their solutions are helping to transform the way businesses operate across the globe.
Financials & Growth Forecast
- Intel AI is a division of Intel Corporation.
- 2021 market capitalisation of over $200 billion USD and reported revenue of approximately $77.9 billion USD in 2020.
- Intel AI has been investing heavily in AI and machine learning technology in recent years.
Partners
Intel AI has many partner companies that it works with to develop and deploy AI solutions in healthcare, finance, automotive, and more, including:
- Alibaba Cloud
- Audi
- Baidu
- BMW
- Dell EMC
- General Electric
- Google Cloud
- Microsoft Azure
- Siemens
8.
AMAZON (Founded 1994)
- Amazon is a leading Washington technology company that specialises in e-commerce, cloud computing, digital streaming, and artificial intelligence.
- One of the most notable AI products is Alexa, a virtual assistant that can perform tasks such as playing music, making calls, and controlling smart home devices.
- Also uses AI for its recommendation engine, which suggests products to customers based on their browsing and purchasing history.
- Additionally, Amazon uses AI in its logistics and fulfilment centres to optimise packaging and delivery.
Partners
Amazon AI has many partner companies, including:
- Accenture
- Deloitte
- Cognizant
Also partners with many technology startups to help them develop their products and services using the AWS platform.
9.
APPLIED MATERIALS (Founded 1967)
- Applied Materials is a leading California semiconductor manufacturing company that has been incorporating AI in its operations to improve quality control, yield, and productivity.
- Been using AI algorithms to analyse data from their manufacturing processes and identifying patterns, which can then be used to optimise production and reduce waste.
- Also been using AI for predictive maintenance, enabling them to anticipate equipment failures and perform maintenance in a timely manner, reducing downtime and increasing efficiency.
- Has been developing AI solutions for their customers, such as AI-enabled tools that can help their customers design more efficient and effective semiconductor chips.
- Overall, an innovative company that has recognised the potential of AI and has been leveraging its power to improve their own operations and help their customers succeed in the rapidly-evolving semiconductor industry.
Financials & Growth Forecast
- 2020 revenue of $17.2 billion, up from 2019’s $14.6 billion.
- Been investing heavily in AI and related technologies. Announced the launch of the Applied AI Research Lab in 2020, which is focused on developing new AI technologies and applications for the semiconductor industry.
- Has been acquiring smaller AI start-ups to enhance its capabilities in this area.
- Overall, Applied Materials Inc. has been experiencing steady growth in recent years.
Partners
Applied Materials has several partner companies, including other semiconductor manufacturers and technology companies:
- Samsung Electronics
- Intel
- IBM
- TEL
- Lam Research
10.
SALESFORCE (Founded 1999)
- Salesforce is a California cloud computing company best known for its customer relationship management (CRM) software, but also provides a wide range of enterprise solutions, including AI technology.
- Has been investing heavily in AI development in recent years, with a particular focus on machine learning and natural language processing.
- The company’s AI platform, Einstein, is designed to help businesses gain insights into customer behaviour, automate processes, and make more informed decisions.
- Einstein offers a range of AI-powered features, including predictive analytics, natural language processing, and image recognition. It can be integrated with other Salesforce products, such as Sales Cloud and Service Cloud, to provide a more comprehensive solution for businesses.
- Overall, committed to helping businesses harness the power of AI to drive growth, improve customer engagement, and streamline operations.
Financials & Growth Forecast
- 2021 market cap of approximately $200 billion.
- Revenue for the full fiscal year 2020 was $17.1 billion, representing a 29% year-over-year increase.
- Reported that AI-powered features, such as predictive analytics and natural language processing, are driving growth across its product portfolio.
Partners
Several companies to help drive innovation and enhance the capabilities of its AI platform, Einstein:
- IBM Watson
- Amazon Web Services (AWS)
- Google Cloud
- Accenture
Advantages & Disadvantages of Investing in AI Technology Companies
Investing in AI technology companies can provide significant advantages, such as:
- Potential for high returns
- Exposure to a fast-growing market
- Opportunity to support innovative companies that are driving change
However, there are also disadvantages, such as:
- High level of risk involved in investing in new technologies
- Uncertainty about the future of the market
- Continuing lack of regulation in the industry
Conclusion
Without doubt, investing in AI technology companies can be a smart move if you are willing to take on some risk for the potential of high returns.
Here at Investment Mastery, we always emphasise the importance of research.
It is essential to consider whether the company is fundamentally strong, has solid financial standing, and future growth potential.
We hope this overview will help you make informed decisions about where to put your money and potentially reap significant rewards.
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Please remember to do your own research, this is not financial advice.
