Investment

Artificial Intelligence Stocks: The Top 9 AI Investment Opportunities

Published

2 years ago

November 13, 2022

Key Takeaways

Artificial intelligence impacts every aspect of our lives, from our search engine results to how our products get delivered, photo apps, face ID, and on, and on.
There are many opportunities for investing in AI right now as companies worldwide look to capitalize on this technology.
Some insurance companies are now fully backed by AI, and there are even AI investment apps available to the average investor now.

Conceptually, AI is to the 2020s what DNA was to the 1990s, what bandwidth was to the early aughts, and mRNA was to the pandemic. You can’t ignore the power of artificial intelligence because it’s part of everyday life now. AI is designed to perform typical tasks involving some degree of problem solving and decision making that humans would normally do. Those tasks now range from making decisions regarding an insurance claim all the way to creating images from scratch based on text prompts.

Many new uses of artificial intelligence, the technology, are still being discovered. Yet, if you think about the evolution of services like Siri or Alexa in our everyday lives, it’s here too.

For today, we’ll look at the best artificial intelligence stocks so you have some investment opportunities to consider if you’re a proponent of this space.

How can you invest in Artificial Intelligence?

While there are many different ways to invest in AI, it is typically a layer of a company’s tech stack, there’s still no clear AI company the way Google was the search engine or Tesla is electric. Here are the investable industries employing substantive AI right now.

Financial Services

Financial services rely on AI-powered technology for fraud detection, underwriting loans, customer service, algorithmic trading, and everyday banking services to simplify processes for customers.

Algorithmic trading is one area that fascinates us here because this technology is being used to minimize transaction costs, improve order execution, and minimize human errors involved in trading securities. As we all continue to look for risk reduction in a volatile stock market, it’s worth noting that the algorithmic trading industry will be worth up to $19 billion annually by 2024.

Actual AI investing, where the neural networks are assessing markets, not just running complex algorithms, is rarer still. Q.ai’s artificial intelligence scours the markets for the best investments for all manner of risk tolerances and economic situations. Then, it bundles them up in handy Investment Kits that execute specific investment strategies like shorts and pair trades.

Healthcare

AI is being used in healthcare in a number of ways, though most of the applications have to scale fully, from tools that can detect diseases and review images like xrays and scans to managing patient flow to recommending next best actions.

Since healthcare is such a data-driven field, AI’s role is growing rapidly. AI can also be used for recognizing medical images, streamlining workflow with physicians and hospital staff, and providing administrative assistance. The World Economic Forum even confirmed that AI could help detect tuberculosis, which would be a significant breakthrough for society.

Insurance

Insurance companies are starting to rely on the power of AI for help with many aspects of the business, from the administrative registration process to handling insurance claims. Lemonade is the first insurance company that’s entirely powered by AI.

Supply chain management

While we keep hearing about supply chain issues in the news, it’s worth mentioning that many companies rely on AI to power the entire supply chain and logistics process. Here are some of the common examples of how AI is impacting supply chain management:

Supply chain automation, from document processing to chatbots for customer service management
Transportation automation, with many companies investing in autonomous trucks
Predictive analysis for more accurate forecasting
Quality control
Supplier relationship management

Advertising and media

We recently looked at how AI-based tools like DALL-E 2 and DALL-E Mini can create images based on text prompts to generate AI art. Advertisers are using the power of AI to predict customer demands, provide suggestions for users, and handle the entire shopping experience.

It’s also worth mentioning that industries like cybersecurity, information technology, and even retail shopping will continue to see AI-powered advances. Any company in one of these fields could be worth investing in if you’re looking for AI investment opportunities.

While some companies focus on creating AI-based services, there are many other companies that are simply focused on investing in AI to improve business operations. Many tech giants are selling AI analytical services to enterprise clients for sizeable contracts. These services related to AI can range from cloud computing to client software tools.

What are the best AI companies to invest in right now?

Here are the best companies to invest in right now if you’re looking to get into the AI space.

Alphabet Inc. ($GOOGL)

Google’s parent company is one of the global leaders in AI research. You don’t have to look far to see the reach of Google’s AI technology as the search engine algorithm likely brought you to this article. AI is also used in every aspect of Alphabet’s business, from accurately organizing your photos to predicting where you want to travel with Google Maps.

While we’ve all seen the power of AI in Google, it’s worth mentioning that Alphabet recently purchased the AI startup Alter for $100 million. Alter is an avatar startup that helps creators and brands express virtual identities. Many analysts believe that this move was made to help Google compete with TikTok. This comes on the heels of the recent acquisition of Mandiant as Alphabet increases its investment in AI and cloud security.

Microsoft ($MSFT)

Microsoft uses AI-powered technology for a variety of its services, but they just announced the introduction of an AI-powered graphic design tool. Microsoft Designer will be a graphic design app in Microsoft 365 that will use the same AI technology found in DALL·E.

Microsoft’s Azure AI platform allows companies to create innovative AI services.

Palantir Technologies Inc. ($PLTR)

Palantir is a data analytics company that uses AI tools to help people make decisions based on better data analysis. This smaller growth company uses AI to analyze data and recommend decisions to a variety of customers. The Palantir Apollo is used for improving delivery systems and automating configurations. Palantir has even been named a leader in the field of AI platforms as the company’s software is used across 50 different industries. The company recently announced that it expects to report between $503 million and $505 million in revenue for the 4th quarter of 2022 as they continue to build the digital infrastructure required for continuous industrial progress.

Lemonade ($LMND)

This is the first insurance company fully powered by AI. When you check out the website, you’ll directly deal with “Maya,” the AI bot that will help you with every step of the process, from signing up for an insurance policy to filing a claim. Many users have turned to Lemonade because you can file an insurance claim in seconds without ever speaking to anyone about it.

Tesla ($TSLA)

Tesla is so dedicated to AI that the company holds an annual AI Day that’s used as a recruitment tool to attract the brightest minds in the field. Tesla has been teasing a humanoid robot, self-driving cars, and the idea of a robot taxi service that would be a mix of Uber and Airbnb as the company continues to focus on improvements in AI.

Amazon ($AMZN)

The entire company uses AI technology in some fashion, from forecasting customer demand to the Alexa device that can be found in many homes. Amazon uses AI at some fulfillment centers as robots work with human beings. The company then uses AI for product forecasting as it would be difficult to maintain inventory levels with such a wide variety of items available online. Amazon also utilizes chatbots for customer service functions to help make the entire shopping process smoother.

Additionally, Amazon Fresh and Amazon Go stores use the Just Walk Out payment system where you don’t have to deal with a human to check out your purchases.

Workday, Inc. ($WDAY)

Workday believes that AI is changing the way companies use HR analytics. The company helps larger firms with AI-powered and cloud-based HR services. The companies that use Workday are given analytics tools to help with making data-driven decisions and financial tools for budget planning. The company mainly uses AI for informed decision-making regarding staffing, insights on unlocking opportunities, and improving experiences so that workers can realize their full potential.

International Business Machines Corp. ($IBM)

IBM was actually at the forefront of AI-based technology when the Deep Blue supercomputer defeated chess champion Garry Kasparov back in 1997. IBM’s Watson has recently made headlines for its AI efforts as it’s used to predict future occurrences, optimize tasks, and help folks with time management.

IBM recently announced that they are training customer service robots to sound more human for improved connections. IBM offers conversational chatbots to business clients who want to improve customer service and digital experiences.

How Q.ai uses Artificial Intelligence

If you’re looking to see the power of AI in action, you don’t have to look any further than Q.ai. Our company is built to leverage artificial intelligence to offer investment strategies for those who don’t want to be burdened with the stress of trying to pick individual stocks. Q.ai utilizes artificial intelligence in three key ways to help investors:

Creating Investment Kits. The power of AI is used to assess every investment every week and to bundle them into kits that users can use to invest with specific parameters. Investors can choose kits like Precious Metals, Tech Rally, Value Vault, and Short Squeeze. You don’t have to worry about deciding which individual securities to invest in or how they should be weighted within your portfolio — the AI does it for you.
Mitigating risk. AI weights the assets in each Investment Kit to reduce the risks for users, a truly unique and highly effective application for the everyday investor.
Handle volatility. Portfolio Protection helps you weather the ups and downs in the market due to the uncertainty in the world right now. This feature uses AI predictions to forecast possible risks and adjust portfolio allocations.

If you’re hoping to make money in the AI space, you can invest in one of our Investment Kits. AI-powered Investment Kits take the guesswork out of investing so you don’t have to worry about where your money’s going.

Bottom Line

It will be fascinating to see how the power of AI technology will be used in more aspects of our daily lives. But there are many different ways that you can invest in AI today. According to Zion Market Research, the global AI industry should grow to $422.37 billion by 2028, increasing from $59.67 billion in 2021. Because AI touches so many parts of business in multiple industries, the question is not whether to invest in AI, only where.

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Economy

S&P/TSX composite tops 24,000 points for first time, U.S. markets also rise Thursday

Published

1 day ago

September 26, 2024

Anne Joseph

TORONTO – Canada’s main stock index closed above 24,000 for the first time Thursday as strength in base metals and other sectors outweighed losses in energy, while U.S. markets also rose and the S&P 500 notched another record as well.

“Another day, another record,” said Angelo Kourkafas, senior investment strategist at Edward Jones.

“The path of least resistance continues to be higher.”

The S&P/TSX composite index closed up 127.95 points at 24,033.83.

In New York, the Dow Jones industrial average was up 260.36 points at 42,175.11. The S&P 500 index was up 23.11 points at 5,745.37, while the Nasdaq composite was up 108.09 points at 18,190.29.

Markets continue to be optimistic about an economic soft landing, said Kourkafas, after the U.S. Federal Reserve last week announced an outsized cut to its key interest rate following months of speculation about when it would start easing policy.

Economic data Thursday added to the story that the U.S. economy remains resilient despite higher rates, said Kourkafas.

The U.S. economy grew at a three-per-cent annual rate in the second quarter, one report said, picking up from the first quarter of the year. Another report showed fewer U.S. workers applied for unemployment benefits last week.

The data shows “the economy remains on strong footing while the Fed is pivoting now in a decisive way towards an easier policy,” said Kourkafas.

The Fed’s decisive move gave investors more reason to believe that a soft landing is still the “base case scenario,” he said, “and likely reduces the downside risks for a recession by having the Fed moving too late or falling behind the curve.”

North of the border, the TSX usually gets a boost from Wall St. strength, said Kourkafas, but on Thursday the index also reflected some optimism of its own as the Bank of Canada has already cut rates three times to address weakening in the economy.

“The Bank of Canada likely now will be emboldened by the Fed,” he said.

“They didn’t want to move too far ahead of the Fed, and now that the Fed moved in a bigger-than-expected way, that provides more room for the Bank of Canada to cut as aggressively as needed to support the economy, given that inflation is within the target range.”

The TSX has also been benefiting from strength in materials after China’s central bank announced several measures meant to support the company’s economy, said Kourkafas.

However, energy stocks dragged on the Canadian index as oil prices fell Thursday following a report that Saudi Arabia was preparing to abandon its unofficial US$100-per-barrel price target for crude as it prepares to increase its output.

The Canadian dollar traded for 74.22 cents US compared with 74.28 cents US on Wednesday.

The November crude oil contract was down US$2.02 at US$67.67 per barrel and the November natural gas contract was down seven cents at US$2.75 per mmBTU.

The December gold contract was up US$10.20 at US$2,694.90 an ounce and the December copper contract was up 15 cents at US$4.64 a pound.

— With files from The Associated Press

This report by The Canadian Press was first published Sept. 26, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX composite up more than 100 points, U.S. stocks also higher

Published

2 days ago

September 26, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in the base metal sector, while U.S. stock markets were also higher.

The S&P/TSX composite index was 143.00 points at 24,048.88.

In New York, the Dow Jones industrial average was up 174.22 points at 42,088.97. The S&P 500 index was up 10.23 points at 5,732.49, while the Nasdaq composite was up 30.02 points at 18,112.23.

The Canadian dollar traded for 74.23 cents US compared with 74.28 cents US on Wednesday.

The November crude oil contract was down US$1.68 at US$68.01 per barrel and the November natural gas contract was down six cents at US$2.75 per mmBTU.

The December gold contract was up US$4.40 at US$2,689.10 an ounce and the December copper contract was up 13 cents at US$4.62 a pound.

This report by The Canadian Press was first published Sept. 26, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Investment

Tempted to switch to an online-only bank? Know the perks and drawbacks

Published

2 days ago

September 26, 2024

Anne Joseph

Switching to an online-only bank more than a decade ago was just another way Jessica Morgan was trying to save money at the time as a new grad.

“Saving money was the main motivator,” Morgan, now a financial educator and founder of Canadianbudget.ca, recalled.

“After graduating, you no longer qualify for student rates where you might get free banking and I didn’t want to go back to paying fees for giving the bank my money to hold.”

Digital lenders have grown in popularity in recent years, with more players popping up in the sector and traditional banks beefing up their online offerings. But some Canadians may still be hesitant to bank with a financial firm that doesn’t have physical branches where you can talk to an employee face-to-face.

Natasha Macmillan, director of everyday banking at Ratehub.ca, says some of that hesitancy to switch to an online lender is loyalty.

“There’s a large portion of Canadians who have had the same bank account for many years … they’re just hesitant to switch because it’s what they know.”

Tedious paperwork to switch banks can also discourage many Canadians from making the move despite the ease of opening online-only bank accounts, Macmillan added.

“There’s that aspect of you still need to sit down, do your research and then pick that online-only bank,” she said.

Data security concerns have also sowed seeds of doubt among many who are contemplating the switch, and prefer to continue to work with traditional banks with long-established reputations, Macmillan said.

Morgan said she often hears concerns from her clients — “What if I need help? Is this bank safe to use?” or more logistical questions, such as having access to an ATM or getting certified cheques.

One of the only major snags she personally recalls running into with her online lender was when she was purchasing a home.

“I needed to get a certified cheque, like, right away if I was going to put in an offer,” Morgan said. “You can get a certified cheque but it takes three days or so. They courier it to you.” She ended up going to her husband’s traditional bank to get day-of service.

Most online-only banks tend to offer banking products, such as savings accounts, with higher interest rates compared with traditional banks. Many also offer access to cash through any bank ATM without charge.

“Digital banks have generally a lower cost structure than a traditional bank and those savings will be passed on to the customer,” said Mahima Poddar, group head of personal banking at EQ Bank. For example, EQ offers a high-interest chequing account with no fees on everyday banking and unlimited transactions.

But customers should be aware they can’t deposit cash into their account and they can only withdraw bills, not coins.

“We don’t offer depositing of cash, but all of our research has shown that the use of cash is really diminishing,” Poddar said. “There are very few reasons why you need to urgently deposit.”

Customers also have to get used to doing all their banking by phone or through the company’s website or app.

Poddar added she thinks Canadians are more open to change, especially after the COVID-19 pandemic, which accelerated the need for better online banking services.

While trust in traditional institutions plays a strong role in choosing a bank, Poddar said EQ has the same level of protection and is governed by the same regulators as the big six banks in the country.

Lisa Brandt, 61, switched to online-only Manulife Bank more than five years ago. She says she has benefited from the move and has saved a lot of money over time on various banking fees.

“It puts me in the driver’s seat,” she said.

However, she did run into an issue once with depositing a cheque after she sold her home.

“If you’re going to deposit a couple hundred thousand dollars from a house sale, you’ll have to courier (the cheque) to them,” she said.

“It’s not quite as simple as walking into a branch and saying, ‘Give me my money.'”

While many online-only banks have been growing their consumer banking product offerings, traditional banks tend to have more financial product options, not only for individuals but also for small businesses.

“What we have heard from some Canadians is while they might be moving their chequing, savings and GIC accounts to those (online-only) spaces, they’re still maintaining a mortgage with the big players,” Macmillan said.

It’s not about moving all assets to one bank but weighing options on an individual basis, such as picking a bank with the lowest fee on a chequing account but moving investments to another bank for a better return, she explained.

“We’re starting to see that flexibility where people are shopping around for the best opportunity that can give them the most bang for their buck,” Macmillan said.

She added it is important for people to identify why they’re thinking of switching and find an online-only bank that aligns with their goals.

“It’s finding that happy medium where you do feel trust and security, that lower cost and fees and also the convenience and accessibility,” Macmillan said.

This report by The Canadian Press was first published Sept. 26, 2024.

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