Artificial intelligence is one of the most trending topics in the technology industry globally. Organizations have been pouring cash into their AI initiatives to advance their service offering and retain a competitive edge. Since last year, AI startups and initiatives have swarmed the technological industry. Many big firms internationally are adopting measures and strategies to roll out new AI-based products and services. The introduction of ChatGPT last year in November was a game-changing scenario for AI firms. The AI boom is also showing its effects in other industries.
The semiconductor industry is also seeing a wave of best artificial intelligence (AI) stocks as firms are developing new plans to launch AI-based products. Santa Clara, California-based Advanced Micro Devices, Inc. (Nasdaq:AMD) intends to create AI chips by the end of 2023 in response to rising competition from industry rival NVIDIA Corporation (Nasdaq:NVDA), Reuters said. AMD’s CEO Lisa Su also commented that the company was accelerating production of flagship MI300 artificial-intelligence chips in the fourth quarter of this year.
The biggest news perhaps so far in the semiconductor industry will be Intel Corporation (Nasdaq:INTC) which will be introducing an AI PC in December.
The International Data Corporation (IDC) has written that artificial intelligence (AI) stocks are the next boom in the technology sector. As companies are ramping up AI-based products and services offerings, the IDC believes that Salesforce Inc. (NYSE:CRM) will create 12 million jobs around the world through 2028 because of its AI-powered cloud solutions.
International Business Machines Corporation (NYSE:IBM) said on Sept. 18 that the Armonk, New York-based technology firm is planning to cut the global artificial intelligence skills gap and will train 2 million AI users by the end of 2028.
QUALCOMM Incorporated (Nasdaq:QCOM) is also stepping up the game in the AI world.
Warren Buffett has invested roughly $690 million in artificial intelligence (AI) stocks as AI is expected to contribute about $15.7 trillion to the world’s gross domestic product, or GDP, by 2030. One firm that may not have been in the news recently is NXP Semiconductors N.V. (Nasdaq:NXPI). The Dutch semiconductor company is one of the top five firms in the list of Buffett’s best artificial intelligence (AI) stocks. NXP Semiconductors N.V. (Nasdaq:NXPI) deep learning solutions provide benefits to Internet of Things applications and industrial sectors. The firm has a market capitalization of approximately $51.4 billion at the moment and has an average trading volume of about 2.2 million shares.
Artificial intelligence (AI) will be everywhere. It's just a matter of time before all firms will be rolling out AI services in the near future. The big technology and semiconductors firms have already started planning to launch AI-based products for the years to come. As the world grasps the waves of AI, organizations will be investing a huge amount into AI initiatives. A lot has been talked already about the fears of job elimination from machine learning and AI. But it is believed that AI may enhance the workflow, streamline the operations, and cut down unwanted tasks.
The best artificial intelligence (AI) stocks in the industry include, but not limited to, Apple Inc. (Nasdaq:AAPL), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Adobe Inc. (Nasdaq:ADBE), Amazon.com Inc. (Nasdaq:AMZN), and CrowdStrike Holdings Inc. (Nasdaq:CRWD). According to Nasdaq, these five companies are the best artificial intelligence (AI) stocks in the sector and although none of them has adopted 100% of AI yet, they are still the biggest players.
Best Artificial Intelligence (AI) Stocks To Buy According to Hedge Funds
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Methodology:
We first listed all holdings of the Global X Artificial Intelligence & Technology ETF and then sorted these stocks using the number of bullish hedge fund positions in each stock. Some of the holdings of the Global X Artificial Intelligence & Technology ETF are foreign companies which don't have hedge fund sentiment data, so we excluded these stocks from our rankings.
Best Artificial Intelligence (AI) Stocks To Buy According to Hedge Funds
Here are the 12 best artificial intelligence (AI) stocks among hedge funds:
ServiceNow, Inc. (NYSE:NOW) is a Santa Clara, California-based cloud computing solutions provider which offers workflow automation, artificial intelligence, machine learning, and other services through its Now platform.
Insider Monkey took a look at hedge fund portfolios for ServiceNow, Inc. (NYSE:NOW) second quarter of 2023 investments and found out that 93 had a stake in the company. GQG Partners was ServiceNow, Inc. (NYSE:NOW) largest shareholder which owns roughly 1.5 million for about $859.5 million of ServiceNow, Inc. (NYSE:NOW).
Adobe Inc. (Nasdaq:ADBE)
Number of Hedge Fund Investors In Q2 2023: 113
Adobe Inc. (Nasdaq:ADBE) is a San Jose, California-based diversified software firm that offers cloud-based document services under its Creative Cloud flagship product. The company rolled out Firefly, a group of AI models and web applications consolidated into Adobe Express, Adobe Creative Cloud, and Adobe Experience Cloud. Adobe Inc. (Nasdaq:ADBE) has also recently introduced Sensei GenAI for customized content and copy. The new offering integrates with Adobe Experience Cloud.
Insider Monkey took a look at hedge fund portfolios for Adobe Inc. (Nasdaq:ADBE) second quarter of 2023 investments and found out that 113 had a stake in the company. Citadel Investment Group was Adobe Inc. (Nasdaq:ADBE) largest shareholder which owns roughly 2 million shares for about $971.9 million of Adobe Inc. (Nasdaq:ADBE).
Alibaba Group Holding Limited (NYSE:BABA) is a Hangzhou, China-based e-commerce giant that offers products to retailers, wholesalers, and other large businesses through its platform. Alibaba Group Holding Limited (NYSE:BABA) Cloud division recently rolled out two open source large artificial intelligence (AI) models that understand images and text in both English and Chinese.
Insider Monkey took a look at hedge fund portfolios for Alibaba Group Holding Limited (NYSE:BABA) second quarter of 2023 investments and found out that 113 had a stake in the company. Citadel Investment Group was the firm’s largest shareholder which owns roughly 9.6 million shares for about $795.8 million of Alibaba Group Holding Limited (NYSE:BABA).
In addition to, Apple Inc. (Nasdaq:AAPL), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Adobe Inc. (Nasdaq: ADBE), Amazon.com, Inc. (Nasdaq: AMZN), and CrowdStrike Holdings, Inc. (Nasdaq:CRWD), Alibaba Group Holding Limited (NYSE:BABA) is one of the best artificial intelligence (AI) stocks in the industry too.
Netflix, Inc. (Nasdaq:NFLX), headquartered in Los Gatos, California, is an entertainment services provider through its mobile and TV-based subscription platform. Netflix, Inc. (Nasdaq:NFLX) utilized artificial intelligence (AI) to understand viewers’ preferences and then it recommended TV shows to them based on their likes.
Insider Monkey took a look at hedge fund portfolios for Netflix, Inc. (Nasdaq:NFLX) second quarter of 2023 investments and found out that 117 had a stake in the company. Citadel Investment Group was once again the firm’s largest shareholder which owns roughly 5 million shares for about $2.2 billion of Netflix, Inc. (Nasdaq:NFLX).
Salesforce, Inc.(NYSE:CRM)
Number of Hedge Fund Investors In Q2 2023: 126
Salesforce, Inc. (NYSE:CRM) offers customer relationship management technology and other enterprise resource planning systems to its global clients base. The firm is headquartered in San Francisco, California and is led by Chief Executive Marc Benioff. The software company utilizes artificial intelligence (AI) for tailored emails, conversations, and other real-time data.
Wedbush Securities mentioned Salesforce, Inc. (NYSE:CRM) on Aug. 31 and raised the price target to $255. Analysts including Daniel Ives wrote:
“CRM barometer a good sign for tech and a strong guide. Importantly, strong CRM numbers and outlook is a huge barometer for the overall IT spending environment with the Street coming away from this print/guide with a more bullish vibe than the last few quarters from the CRM stalwart,”
Insider Monkey took a look at hedge fund portfolios for Salesforce, Inc. (NYSE:CRM) second quarter of 2023 investments and found out that 126 had a stake in the company. Harris Associates was the firm’s largest shareholder which owns roughly 5.1 million shares for about $1.1 billion of Salesforce, Inc. (NYSE:CRM).
Apple Inc. (Nasdaq:AAPL)
Number of Hedge Fund Investors In Q2 2023: 138
Headquartered in Cupertino, California and valued at about $2.78 trillion, Apple Inc. (Nasdaq:AAPL) is one of the largest companies on the planet. The firm sells many flagship products including iPhone, iPads, and others. Stepping into artificial intelligence (AI), Apple Inc. (Nasdaq:AAPL) offers best services to global customers by utilizing machine learning as well.
The latest iPhone launch by Apple Inc. (Nasdaq:AAPL) will drive growth to the fullest. Coupled with a big focus on AI, Apple Inc. (Nasdaq:AAPL) is leading the race in technology. Its demand for products in Asia still remains very high with China as one of its largest markets. Wedbush Securities estimates approximately 85 million units to be sold in the Asian markets. Analysts wrote:
“Our Asia supply chain checks give us increased confidence that iPhone units should be roughly 85 million units out of the gates and could be close to 90 million as eyepopping carrier promotions already underway will be a major catalyst for upgrades into holiday season.”
Insider Monkey took a look at hedge fund portfolios for their second quarter of 2023 investments and found out that 138 had a stake in the company. Warren Buffett’s Berkshire Hathaway was the firm’s largest shareholder which owns about 915.5 million shares for approximately whopping $177.6 billion of Apple Inc. (Nasdaq:AAPL)
Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Investors In Q2 2023: 145
Uber is a San Francisco, California-based ride hailing firm led by CEO Dara Khosrowshahi. Uber Technologies, Inc. (NYSE:UBER) operates in the United States, Canada, South America, Europe, the Middle East, Africa, and Asia excluding China and Southeast Asia. With the use of artificial intelligence (AI) and machine learning, Uber Technologies, Inc. (NYSE:UBER) enhances its service though more informed decisions. These decisions enrich user experiences.
Insider Monkey took a look at hedge fund portfolios Uber Technologies, Inc. (NYSE:UBER) second quarter of 2023 investments and found out that 145 had a stake in the company. Altimeter Capital Management was the firm’s largest shareholder which owns about 13.3 million shares for approximately $575.7 million of Uber Technologies, Inc. (NYSE:UBER).
Like, Apple Inc. (Nasdaq:AAPL), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), Adobe Inc. (Nasdaq: ADBE), Amazon.com, Inc. (Nasdaq: AMZN), and CrowdStrike Holdings, Inc. (Nasdaq:CRWD), Uber Technologies, Inc. (NYSE:UBER) is one of the best artificial intelligence (AI) stocks in the industry too.
