When we think of artificial intelligence and robotics, we typically consider robots from science-fiction novels and motion pictures. But AI and robotics can consist of so much more. Plus, they are all around us today, so we do not need to envision the future 30 years from now. That said, the technology industry remains in the infancy period of artificial intelligence and robotics, which means investors can still get in on the ground floor in this exciting field.
As you can tell by now, nearly every North American firm that has delved into this arena has witnessed a surge in share price. And it is unlikely to slow down as the world adopts the latest technological developments. We’ve already seen AI incorporated into every aspect of our lives, from AI chatbots to e-commerce artificial intelligence. For investors, of course, this presents an investment opportunity that could turn out to be lucrative. It might seem intimidating to buy a stock that has popped triple digits in a single year, but it might be better than seeing zero returns on your savings account.
While the first company that produces a real-life robot that does everything, from child care to folding the laundry to listening to your problems, will become a trillion-dollar company, a lot of the world’s most successful companies are making a lot of money today from the small things, like analytics and chips. Many of these businesses have seen their stock valuations skyrocket, but that does not mean is it too late to jump into these stocks.
Here are the seven best artificial intelligence stocks with promising returns:
1. Nvidia Corp Stocks (NVDA)
- 2020 Performance: 113 per cent
Nvidia Corp is considered one of the best artificial intelligence stocks in 2021. Chips are imperative to the success of artificial intelligence, so it makes sense that Nvidia is an enormous company that keeps expanding its repertoire by scooping up companies in this arena. The consensus is that Nvidia will accelerate operations in 2021, particularly with more certainty in the global economy and interest rates resting at an all-time low.
2. Alphabet Stocks (GOOGL, GOOG)
- 2020 Performance: 20 per cent
Alphabet (Google) has billions in its war chest, and the company is using its money to spend on AI technology. For the search engine giant, the focus will be on using AI in consumer products and services, particularly in digital advertising. But with more of the tech titans investing in voice-activated smart home devices, Alphabet could also be pouring its treasure into expanding Google Home, which is Amazon Alexa’s chief competitor.
3. iRobot Corporation Stocks (IRBT)
- 2020 Performance: 57 per cent
When nearly two-dozen hedge funds are bullish on a company, you start paying attention. Indeed, iRobot Corporation has seen its market capitalization explode to $2.4 billion, and its share price has soared 75 per cent in 2020. Hedge funds may have been beaten by armchair retail investors in 2020, but this play suggests that hedge funds still know what they are doing.
4. DocuSign Stocks (DOCU)
- 2020 Performance: 170 per cent
Is there such a thing as contract analytics? Yes, and DocuSign paid big bucks to acquire Seal Software ($188 million) to gain access to its AI for contract analytics. DocuSign is one of the more practical companies in this realm, particularly with more documents shifting online and in digital format.
5. Salesforce Stocks (CRM)
- 2020 Performance: 40 per cent
Salesforce.com has been a tremendous company became one of the richest companies in the United States under the radar. The business is making big investments in AI software in order to improve sales forecasts and enhance its account and lead data for better forecasting models.
6. Twilio Stocks (TWLO)
- 2020 Performance: 180 per cent
In 2018, Twilio, a cloud-based application programming interface, was worth about $4 billion. Today, it maintains a market cap of approximately $27 billion. That is not too shabby, and most analysts think it has the opportunity to grow its profits by 45 per cent over the next five years. How? By developing better voice, video and messaging features into applications. Some say the stock is too volatile, but The Street believes it is one of the top AI companies heading into 2021.
7. Global X Robotics & Artificial Intelligence ETF Stocks (BOTZ)
- 2020 Performance: 20 per cent
When some stocks seem too expensive or you are unsure what would be the best company to invest in, this exchange-traded fund (ETF) allows you gain exposure to the sector. Here are some of the fund’s primary holdings:
- Nvidia: 9.7 per cent
- Intuitive Surgical: 8.22 per cent
- ABB: 7.98 per cent
- Keyence Corp.: 7.61 per cent
- Fanuc Ltd.: 7.18 per cent
The cherry on top is that it pays a quarterly dividend of six cents. In an outrageous, egregious, and preposterous market, dividends have become more valuable than ever before. It instills confidence in your stock investment and might discourage you from hitting the panic button throughout the turmoil.
Imagine if you held on to the SPCE ETF throughout the coronavirus-induced financial crisis!