Key takeaways
- ChatGPT has shaken up the world of artificial intelligence, spurring companies like Google and Microsoft into action
- As major tech companies shake off a rough 2022, investing in AI could be the next big thing in 2023
- Several new AI-based products have launched or been announced since ChatGPT appeared on the scene
- Here are the AI stocks to watch as 2023 forges ahead
Tech companies took a beating in 2022 as inflation, supply chain issues and Russia’s invasion of Ukraine battered the market. The last quarter saw some of that volatility ease up, only for tech firms to initiate layoffs en masse.
But when ChatGPT entered the chat, the tech sector’s revitalization efforts gained new life. Since then, investors and consumers have flocked to AI to create art, answer questions or beef up their portfolios. AI-related leaders like Google, Nvidia and dark horse Microsoft have ridden the AI boom to new heights. The latter has invested $10 billion into ChatGPT, rolling its tech into the Office suite of products.
In other words, it’s time to put eyes on these AI stocks to watch in 2023 as the sector explodes.
Naturally, it’s no surprise that an AI-based investing app is interested in the latest artificial intelligence developments. If you’re ready to use your capital to capitalize on AI, Q.ai’s Emerging Tech Kit makes a great place to start.
Download Q.ai today for access to AI-powered investment strategies.
ChatGPT shaking up the industry
When OpenAI’s ChatGPT launched in November 2022, it’s fair to say that the artificial intelligence industry exploded.
Suddenly, AI could do more than create neat artwork or edit your prose in Grammarly. Now, it can answer complex questions with complex answers. Admittedly, it’s not perfect and there are kinks to unwind. But as the machine continues to learn, its prowess and prestige only grows.
It’s difficult to understate the scope and influence of ChatGPT’s success.
Within two months, OpenAI’s app registered 100 million users – equivalent to nearly one-third of the U.S. population. Surging population among consumers and techies has generated tons of excitement about AI’s expanding use cases.
Overnight, a single AI chatbot became a threat to some of the biggest tech players in the world. Since then, artificial intelligence has morphed from a niche – but growing – futurism into an investable industry all its own.
7 AI stocks to watch in 2023
While 2022 challenged tech, the rise of ChatGPT and AI investment have breathed new life into the recovering sector. Stocks like Microsoft, Google and Baidu have all dominated headlines – and charts – as they’ve helped fledgling AI projects take flight.
Let’s look at some of the top AI stocks to watch in the coming months.
Microsoft
Microsoft’s response to the ChatGPT threat was swift and neutralizing: it bought in.
Microsoft has invested $10 billion into OpenAI to provide essential funding and cloud computing power to amp up its models. The investment allows Microsoft to embed ChatGPT tech into its products, including the new Bing chatbot, Teams and the rest of the Office lineup.
By buying in early, Microsoft’s Bing gained an edge in its competition with Google’s search engine, but it’s not been smooth sailing for either company in implementing chatbot tech.
Alphabet Inc.
Google’s search engine has claimed the coveted position of top dog for years. But to keep up with the competition, it will have to hop on the AI train – fast.
Fortunately, it’s well on its way. Despite recently laying off 12,000 employees, Google has already released its ChatGPT rival, Bard. While full of hype, the initial launch of the competitor didn’t go well, with the chatbot making an error during its first demonstration.
The chatbot runs on Google’s LaMDA, or its Language Model for Dialogue Applications. LaMDA has officially been in the works since at least 2021 – but with ChatGPT and Bing, of all search engines, claiming headlines, it was now or never.
Google also plans to release its Generative Language API for developers soon, which will enhance the world of AI programming.
Of course, these are just Google’s latest AI innovations. The truth is, Google relies on artificial intelligence across much of its business, from filtering spam emails to enhancing its YouTube algorithms. Google also owns DeepMind, which plans to launch a ChatGPT rival sometime this year.
Baidu
Baidu is China’s domestic answer to Google, dominating over 75% of China’s search market. Aside from its exploding cloud business, Baidu has driven dollars power into AI-based autonomous driving research. In 2023, it hopes to deliver on plans to develop “the world’s largest autonomous ride-hailing service area.”
Baidu has also poured resources into a new chatbot service to rival ChatGPT, called Ernie. Much like Bard, the initial demonstration was pre-recorded, causing major disappointment in analysts and users across the world and causing Baidu stock to drop 10%. However, it roared back the next day when the company announced that 30,000 businesses had already signed up to trial the service.
C3.ai Inc.
C3.ai offers custom enterprise AI applications for clients spanning a range of industries from Fortune 500 giants to the U.S. DoD.
Its impressive AI suite can perform tasks like forecasting supply chain demand, detecting fraud and monitoring network health. This is made possible by an artificial intelligence that specializes in pattern recognition and predictive monitoring capabilities.
Already, major companies like Amazon and Google rely on C3.ai to enhance their cloud services. Shell has also hopped on the AI train, putting over 100 AI applications from C3.ai into production each year.
Nvidia Corporation
You likely know Nvidia as the high-end chipmaker that enables your computer and TV to stream Netflix and deliver investing news. But Nvidia’s chips are capable of so much more – namely, powering the future of artificial intelligence.
Nvidia’s specialized deep learning chips are already in use in industries like healthcare, finance, social media and more. Major tech firms like Meta and Google had adopted Nvidia’s GPUs to power internal and client-facing AI applications. And as more artificial intelligence hopefuls spring up, demand for specialized processors will only surge.
It’s often said that the ones who make the biggest fortunes in a gold rush are those that sell the picks and shovels. Well, Nvidia is in the shovel business.
Amazon.com, Inc.
Unsurprisingly, Amazon also stands to benefit from the latest AI revolution.
The company relies on machine learning and predictive models to enhance its product recommendations, Alexa devices and AWS cloud services. It’s even introduced artificial intelligence into the brick-and-mortar shopping experience with its Just Walk Out payment system.
Tesla
Let’s be honest: Tesla’s AI day and autonomous vehicles aren’t the only reason to watch the infamous carmaker. After all, who hasn’t been entertained – morbidly or otherwise – by CEO Elon Musk’s latest Twitter antics?
Still, Tesla’s advancements in artificial intelligence may make for investment-worthy news in the year to come. For instance, it hopes to capitalize on its road-worthy autonomous efforts with a robot taxi service. And if all goes well, Tesla may debut a functional, humanoid robot in the next year or two.
More practically, Tesla has also integrated AI into its quality control systems to automate and simplify the process.
Use AI to invest in AI
Each of these AI stocks to watch is just that – a stock to watch. While they’re investing on hype and expectations now, there’s no telling how their ambitions will actually pan out.
That brings us to an overarching concern for investors: the dangers of stock picking.
On one hand, choosing a winner is never guaranteed in the stock market. On the other, picking your own stocks introduces unnecessary risk into your portfolio.
Even if you spend tons of time researching the “right” companies, media headlines, personal preferences and emotions can all get in the way. And if you get past all that, the market can still throw you a curveball and tank your performance.
Instead, we propose an alternative: investing in AI with AI, courtesy of Q.ai.
With our Emerging Tech Kit, you can put your capital to work in companies on the cutting edge of AI, like Google, Microsoft and more. We’ll keep you ahead on next-generation tech while balancing your holdings for your desired risk level.
Better yet, you’ll enjoy all the benefits of investing like a hedge fund – without paying through the nose. (Or even leaving the couch.)
Using AI to invest in AI like one of The Big Guys?
How very meta of you.
Download Q.ai today for access to AI-powered investment strategies.
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