Artificial intelligence (AI) is the new, innovative, technology that uses computers to perform tasks that normally require human intelligence. Also, AI includes deep learning and machine learning technology.
Machine learning involves training a system with huge amounts of data, then using that trained system to make inferences about new data.
Best AI Business to Invest in 2021 and Beyond
Companies are using artificial intelligence in two ways:
- Many companies use AI to benefit their existing operations. High-profile applications include robotics, self-driving cars, and smart voice assistants. But Google also uses AI to filter out the spam for Gmail users. Amazon uses AI to recommend products to customers. And Netflix uses AI to guide content creation and recommendations.
- Some companies profit directly from AI by selling the hardware, software, services, or expertise the technology needs.
Best AI Business to Invest in 2021
Machine learning’s training phase demands a lot of computing power. Graphics chips, used primarily for rendering video games. Leading graphics chip company NVIDIA has taken advantage of the AI boom, with its graphics cards becoming the standard in data centers around the world.
NVIDIA’s graphics cards are used to accelerate a wide variety of data center applications.
New Self-Driving Car and NVIDIA
A self-driving car must process massive amounts of data from multiple sensors and cameras in real-time, detect objects like pedestrians and other vehicles, and make complex decisions. They require a tremendous amount of computing power, and that’s exactly what NVIDIA’s platform delivers.
International Business Machines (IBM) has been around for over a century. Today, the tech giant is an integrated provider of hardware, software, and services to large enterprise customers. Its mainframe computer systems are still effective in certain industries.
IBM’s strategy with AI is to apply the technology where it can augment human intelligence, increase efficiency, or lower costs. In the healthcare industry, IBM’s AI tech is being used to create individualized care plans, accelerate the process of bringing new drugs to market, and improve the quality of care.
In the financial services industry, IBM is using AI to help clients with the daunting task of regulatory compliance.
IBM is a complicated company. But if you’re looking to invest in a company that will benefit from the AI boom, IBM is a good choice.
Micron Technology manufactures memory chips, including dynamic random-access memory (DRAM) and NAND flash memory. Most of what the company makes are commodity products, meaning that supply and demand dictate pricing.
This leads to sometimes brutal cycles in the semiconductor sector where an oversupply of chips pushes down prices. In 2021, that cycle appears to be on an upswing because the demand is high for mobile, 5G, cloud computing, and graphics.
In the long run, demand for memory chips will only grow. Self-driving cars are a good example. All the sensors and cameras produce a lot of data. Micron estimates it at around 1 GB per second.
Perhaps no company is using AI in a wider range of ways than Amazon. Founder and CEO Jeff Bezos loves AI and machine learning. Amazon started as an online retailer, but technology has always been at the company’s core.
Today, Amazon uses artificial intelligence for everything from its industry-leading voice-activated technology, Alexa, to its Amazon Go cashier-less grocery stores, to Amazon Web Services Sagemaker, the cloud infrastructure tool that deploys high-quality machine learning models for data scientists and developers.
Amazon’s dominant e-commerce business is also built on AI, as algorithms run recommendation engines for e-commerce as well as video and music streaming, and determine product rankings.
The new plan is Drone delivery. Probably it would be yet another successful AI application for the tech giant.
Last Tip – AI Will Keep Growing
IDC expects total spending on AI systems to reach $98 billion in 2023. IDC sees a compound annual growth rate of 28.7%.
With the market already large and growing quickly, there’s room for many companies to profit from AI. While picking stocks in a growth industry has a lot of uncertainty, but NVIDIA, IBM, Micron, and Amazon are all profitable AI stocks. They are now the 4 big players. The best AI business in 2021 and beyond.
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