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Top AI Stocks to Watch Out for in 2022

Minor developments in machine learning (ML) and artificial intelligence (AI) send shockwaves
Published on Dec 18, 2021

No technology could be more awaited. Even minor developments in machine learning (ML) and artificial intelligence (AI) send shockwaves through mass media and forums online. 

And why not? Stalwarts like Cathie Wood have called AI the “frontier of technology.” The technology could impact every aspect of our daily lives. Already, it has transformed how we connect with new people and engage online (social media). How we manufacture (robotics), market, sell (e-commerce), game, entertain (digital content), study, and travel (self-driving vehicles). Wood estimates that AI’s impact on virtually every industry will create market opportunities worth over $80 trillion within the next ten years. 

Wood estimates that AI's impact on virtually every industry will create market opportunities

AI could also be our single biggest ally in fighting the climate crisis. In fact, a large share of the market opportunities Wood alludes to will lie in pushing the limits of efficiency and identifying more sustainable business models. Additionally, artificial intelligence will help us manage the damage caused by climate change, forecast catastrophes more accurately, optimize climate finance, and plan robust climate action. 

From converting speech to text, to saving the planet. That is AI for you. And given how extraordinarily broad the market is, technology companies are investing billions in AI hardware and software to make breakthroughs—racing to come out on top. So, which companies are winning? Here is the list. 

Top AI Stocks to Watch Out for in 2022 

  • Nvidia 
  • Apple Inc 
  • C3.ai Inc 
  • Meta 
  • Alphabet 
  • Amazon 
  • IBM 
  • Microsoft 

1. Nvidia 

Among the most valuable companies in the world, Nvidia is a pioneer in designing and manufacturing graphical processing units (GPUs) and system on a chip (SOCs) units for the gaming, automotive, mobile, medical, and other high-performance industries.  

Nvidia graphical processing units (GPUs) and system on a chip (SOCs) units
From converting speech to text, to saving the planet. That is AI for you.

Nvidia has become a champion of AI and data science solutions thanks to its expertise in designing processors—the brain of an AI. Artificial intelligence models are trained by feeding them massive amounts of data, which is increasingly graphical. The model then makes inferences by identifying patterns. It then uses the inferences to make predictions.  

That is how machines learn—in dangerously simple terms. 

Read more: Top AI Trends to Watch Out for in 2022 

2. Apple Inc 

Forrest Gump’s ‘fruit company’ is now the world’s most valuable by market capitalization. Apple is a designer and manufacturer of personal computers first. However, it is most known for its mobile device—the iPhone.  

What makes Apple special is that, unlike other manufacturers, it designs and builds its own chips. Apple also designs and builds its own operating systems, for both its phones and computers. And both systems feature Siri, its virtual assistant. In fact, all major Apple devices feature Siri—Apple TV, the iPad, Apple Watch, the HomePod.  

Apple Inc - Apple devices feature Siri—Apple TV, the iPad, Apple Watch, the HomePod.
Apple is a designer and manufacturer of personal computers first. However, it is most known for its mobile device—the iPhone.

Since Siri’s launch in 2011, its scope of intelligence has broadened greatly. Today, it is much more capable of processing and understanding natural language—and not just English, but over ten languages. But besides converting speech to text and executing daily tasks, Apple has also made leaps in image processing. It uses deep learning to identify objects in photographs/images and display relevant information. 

Further, Apple is now expected to disrupt the VR/AR market with its headset. It is also rumored to have a self-driving car in its plans. Both make heavy use of AI. 

Read more: Bias in AI: How Recruiting With AI Reduces Costs…and Diversity 

3. C3.ai Inc 

C3.ai is a leading provider of AI software for enterprises. Its AI solutions help enterprises accelerate their digital transformation.  

However, C3.ai’s exceptional work with AI has also been recognized by the US government. On December 9, the company announced a $500 million project with the US Department of Defense. While the figure may be a surprise, the recognition is not. The company has already developed intelligent software for the US Air Force and the US Space Command.  

C3.ai's software solutions

C3.ai reported strong numbers this month. Compared to the second quarter, its total revenue climbed 41% to $58 million. It bumped up its contract with Baker Hughes to $495 million. It also entered a “strategic alliance with Google Cloud to allow the entire Google Cloud global sales and service organization to co-sell and service the entire family of C3 AI applications,” as stated by its CEO, Thomas Siebel.  

Enterprises can deploy C3.ai’s software solutions at any scale and across any infrastructure. The stock is as pure as an AI stock can get. 

Read more: “51% Rely on AI”: Marketing Insights and Challenges in 2022 

4. Meta (Formerly Facebook) 

Meta, formerly Facebook, is the parent company of Facebook, Instagram, WhatsApp, and Messenger—the world’s most dominant social media platforms.  

According to Meta, the platforms, in total, boast over 2 billion users. That is an astounding number of people generating an astounding amount of data. And while that data was initially textual and photographic, today, it is video and even transactional. In the future, as its new name Meta suggests, its users will also generate data in the metaverse—a virtual world hosted by Meta.  

Meta (Formerly Facebook)
According to Meta, the platforms, in total, boast over 2 billion users. That is an astounding number of people generating an astounding amount of data.

In the metaverse, we will do everything we do in the real universe: work, play, shop, entertain, exercise. And that is why Meta is a great bet when it comes to AI. The company has one of the world’s best teams in AI research, and it can leverage the limitless data it has to train and develop one of the world’s best AIs. 

Read more: Top 4 Skills That AI Won’t Replace 

5. Alphabet 

A list of the best stocks in AI cannot be complete without Alphabet, the parent company of Google.  

Worth almost $2 trillion, Google, like Meta, is expected to create one of the world’s finest AIs. Thanks to Google Search—which is by far, the world’s most popular search engine—Alphabet has access to an enormous amount of data. Alphabet also owns YouTube, where nearly 5 billion videos are watched daily.  

Best stocks in AI cannot be complete without Alphabet

While Google’s Trends and Analytics make heavy use of intelligent software and deep learning, Google’s AI is most popular as the Google Assistant—the virtual assistant found on every Android mobile device and Google’s Home devices. In theory, the Assistant is identical to Siri. However, the former’s capability to process natural language and understand complex commands is judged superior.  

Alphabet has also developed a supercomputer, and is now the process of building a quantum computer. The AI giant is also using its expertise to build a self-driving car. 

Read more: Healthcare Analytics Consulting: Are You AI-Ready? 

6. Amazon 

Amazon is one stock in AI certainly to look out for in 2022. The world’s leading retailer uses AI in virtually every aspect of its value chain.  

Its former CEO, Jeff Bezos, has always been vocal about the use of technology and how it can transform businesses across every layer and infrastructure. Amazon is known to automate whatever it is that they find can be automated. It deploys robots in its warehouses. It uses deep learning to recommend products and content on its e-commerce and OTT platforms.  

Amazon deploys robots in its warehouses
Amazon is one stock in AI certainly to look out for in 2022. The world’s leading retailer uses AI in virtually every aspect of its value chain.

Furthermore, it automates tracking, emailing, and updating claims. Now, with Alexa, Amazon’s rival to Siri and Google Assistant, it has also entered the smart home industry. And that is what makes Amazon such a great buy. Amazon is innovating and developing advanced AIs to solve a variety of problems, not just a few. 

Read more: Think #RPA Will Transform Your Business? Wait Till You Combine It With #AI 

7. IBM 

IBM may not have become what one may have expected in its heyday. But it is still a prominent provider of enterprise hardware, software, and other intelligent solutions. Let us not forget that it was IBM that made one of AI’s formative breakthroughs when it built Watson—a weak AI that happens to have defeated humans at Jeopardy.  

In fact, Watson is no longer a one-trick pony, but over two decades has evolved into many large-scale, comprehensive enterprise AI solutions. The solutions empower businesses worldwide across the spectrum, from healthcare and finance to education, marketing, and IT (Information Technology). Watson’s Assistant provides communication solutions. Its Discovery platform enables high-performance data analytics. Natural Language Understanding and Speech to Text enable text analytics and transcription.  

AI is Big Tech biggest in achieving sustainability.

Worth over just $110 billion, IBM is still a solid buy. From process automation to drug synthesis and financial forecasting, IBM’s AI has the potential to become a world leader. Like Alphabet, it is also developing its own quantum computer. 

Read more: Can AI Help Achieve Environmental Sustainability? 

8. Microsoft 

Most people associate Microsoft with Windows. And that is fair. After all, Windows is the world’s most commonly used operating system. However, Microsoft, worth over $2 trillion, does so much more, inside as well as outside Windows.  

Microsoft has integrated its operating system with its intelligent, virtual assistant, Cortana, which uses deep learning to predict user words and actions more accurately, and execute complex voice commands. Microsoft also relies on AI to better its cloud computing platform Azure. It, for example, identifies models to run data centers more efficiently, automatically shifting the load from energy generated by non-renewables to energy generated by renewables.  

Microsoft, worth over $2 trillion
Microsoft, worth over $2 trillion, does so much more, inside as well as outside Windows.

As is the case for all members of the Big Tech, AI is its biggest ally in achieving sustainability. In fact, Microsoft might be a step ahead. The software behemoth is not just pursuing the project blindly, but investing also to understand the consequences. A crucial part of its agenda to achieve sustainability is developing an ethical AI. Microsoft, like Meta, is also betting big on the VR/AR market. So watch out. 

Read more: Top Sustainable Companies in 2021 

 

Top AI Stocks to Watch Out 2022

 

And these are the stocks that could most benefit from the AI boom in 2022. 

With offices in New York, Austin, Seattle, London, Zurich, Pune, and Hyderabad, SG Analytics is a leading research and analytics company that provides tailor-made insights to enterprises worldwide. If you are looking to make critical data-driven decisions, decisions that enable accelerated growth and breakthrough performance, contact us today. 


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