Posted in  Blog, Crypto & NFTs  |  December 7, 2023  |  Steven Peterson

1. Microsoft (NASDAQ: MSFT)

  • Sector: Technology
  • Key AI Application: Azure cloud infrastructure for AI operations.
  • Market Cap: $2,744B
  • Recent Price: $370.29
  • Growth Drivers: Expansion of Azure, investments in AI through OpenAI and ChatGPT partnerships.
  • Potential Risks: Market competition in cloud services.

Chart:

Description: Microsoft's (MSFT 0.31%) Azure cloud infrastructure service is at the heart of the company's AI empire. Azure offers customers tools for building, launching, running, and scaling AI operations. As more AI software is launched and scaled, Microsoft stands to be one of the biggest beneficiaries.

2. Nvidia (NASDAQ: NVDA)

  • Sector: Semiconductor
  • Key AI Application: Graphics processing units (GPUs) for AI and data centers.
  • Market Cap: Approx. $1.15 trillion
  • Recent Price Trend: Up 220% YTD
  • Growth Drivers: Dominance in GPU market, growth in AI service offerings.
  • Potential Risks: Semiconductor market volatility, competition

Chart:

Description: Nvidia (NVDA 1.78%) has been one of 2023's hottest stocks. The semiconductor specialist's share price is up roughly 220% year to date -- a performance that has pushed the company's market capitalization to roughly $1.15 trillion and made it the world's sixth-largest public company.

3. Amazon (NASDAQ: AMZN)

  • Sector: E-commerce, Cloud Computing
  • Key AI Application: Amazon Web Services (AWS) for AI development.
  • Market Cap: $1,497B
  • Recent Price: $146.18
  • Growth Drivers: AWS demand, AI integration in e-commerce.
  • Potential Risks: E-commerce market fluctuations, cloud service competition

Chart:

Description: Amazon's (AMZN 0.93%) position as the market leader in cloud infrastructure service has the business on track to continue facilitating and benefiting from the rise of AI. Amazon Web Services (AWS) provides key tools that make it possible to develop, run, and scale AI software, and demand for these services is already driving strong performance for the segment.

4. Palantir Technologies (NYSE: PLTR)

  • Sector: Software and Data Analytics
  • Key AI Application: Data analytics services with AI integration for government and commercial sectors.
  • Market Cap: $39.538B
  • Recent Price: $18.17
  • Growth Drivers: Expansion of AI platform deployments, improved operating margins, 'land and expand' strategy success.
  • Potential Risks: Volatility in government contracts, competitive AI market, need for ongoing AI differentiation.

Chart:

Description: Palantir (PLTR -0.22%) is an analytics and AI specialist that helps customers generate actionable insights and make sense of data. The company has contracts with multiple organizations within the U.S. Department of Defense and other government agencies, but it's also been quickly building its base of private-sector customers.

5. Alphabet (NASDAQ: GOOGL, GOOG)

  • Sector: Technology, Digital Advertising
  • Key AI Application: Diverse, including Google Search and DeepMind.
  • Market Cap: $1,618B
  • Recent Price: $130.79
  • Growth Drivers: Broad AI applications, leadership in digital ads.
  • Potential Risks: Regulatory challenges, market competition

Chart:

Description: Alphabet (GOOGL 1.18%) (GOOG 1.13%) is the world's largest digital advertising company. Thanks to the strengths of its Google Search platform, Android mobile operating system, cloud infrastructure service, YouTube, Gmail, and other offerings, the company has an impressive ecosystem of products and services that stand to benefit from AI technologies.

6. Meta Platforms (NASDAQ: META)

  • Sector: Technology (Social Media and Internet Services)
  • Key AI Application: AI-driven algorithms for content personalization and targeted advertising, development of AI chatbots, virtual and augmented reality technologies.
  • Market Cap: $815.079B
  • Recent Price: $317.17
  • Growth Drivers: The company's growth is propelled by its investment in AI technologies for enhancing user experience on its platforms, its foray into VR and AR, and diversification of revenue streams beyond traditional advertising.
  • Potential Risks: Meta faces challenges like regulatory scrutiny, privacy concerns, and intense competition in the tech sector, particularly in social media and AI-driven services.

Chart:

Description: With more than 3 billion daily active users across Facebook, Instagram, WhatsApp, and other services, Meta Platforms (META 0.00%) stands as the world leader in social media. Like Alphabet, the company is a leader in the digital ads space, with access to massive troves of data.

7. CrowdStrike (NASDAQ: CRWD)

  • Sector: Cybersecurity
  • Key AI Application: AI and machine learning in cybersecurity, development of generative AI applications, including "Charlotte AI" for advanced threat detection and response.
  • Market Cap: $56.464B
  • Recent Price: $235.12
  • Growth Drivers: Revenue growth, expansion of AI capabilities, new AI cybersecurity initiatives, increasing adoption of advanced Falcon Platform features, strategic acquisitions.
  • Potential Risks: Rapidly evolving cybersecurity threats, intense market competition, challenges in adapting to advanced cyber threats.

Chart:

Description: CrowdStrike (CRWD -0.75%) is a cybersecurity company that uses AI and machine learning to protect hardware devices and networks from attacks. In an age of bad actors increasingly turning to generative AI and other advanced technologies to carry out cybercrimes, the company's Falcon platform offers adaptive protections capable of guarding large businesses and organizations.

8. IBM (NYSE: IBM)

  • Sector: Technology and Cloud Computing
  • Key AI Application: Business-focused generative AI, AI-powered cybersecurity solutions.
  • Market Cap: $148.062B
  • Recent Price: $162.15
  • Growth Drivers: Expansion in AI applications for businesses, demand for AI in cybersecurity.
  • Potential Risks: Competitive landscape in AI and cloud services, complexity of cybersecurity threats.

Chart:

Description: IBM, a long-standing leader in the technology sector, has shifted its focus towards integrating AI into its various business solutions. Key highlights from IBM's 2023 Think event showcased the company's emphasis on generative AI, specifically tailored for business applications. IBM unveiled WatsonX, combining foundation models, generative AI, governance tools, and more, designed to accelerate AI adoption in corporate settings. This aligns with IBM's strategy to provide narrow, industry-specific AI applications rather than broad consumer-focused tools.

9. Baidu (NASDAQ: BIDU)

  • Sector: Internet Services and AI
  • Key AI Application: AI chatbots, cloud-based AI services, AI-powered word processing tools.
  • Market Cap: $39.818B
  • Recent Price: $113.25
  • Growth Drivers: Expansion of AI product offerings, increased adoption of AI tools.
  • Potential Risks: Regulatory environment in China, competition in AI and internet services market.

Chart:

Description: Baidu, often referred to as the "Google of China," has been expanding its AI portfolio with several new products, including a word processing app and the AI chatbot "Ernie." The launch of Ernie and other AI products marks a significant step in Baidu's strategy to enhance its business model and increase advertising revenue. Baidu's AI applications are widely adopted, with thousands of businesses using its Qianfan cloud platform and millions of users engaging with its AI tools.

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About the Author

Steven Peterson is our staff writer and he has been interested in alternative investing strategies since 2016. He first started his research on gold, and real estate investment trusts which later expanded into wine, hedge funds, and lithium.

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