Investing in artificial intelligence (AI) can be a great way to diversify your portfolio and capitalize on the growing demand for AI-based products and services. But it’s not always easy to find the right stocks that will give you exposure to this rapidly evolving sector.
That’s why one investor, who has been investing in AI for more than 10 years, recently revealed his top stock pick as a way to play into the trend without taking too much risk. The investor is John Smith, founder of Smith Capital Management LLC, an investment firm specializing in technology investments with a focus on AI.
Smith believes that there are two key factors when it comes to investing in AI: understanding how companies are using AI and finding those companies that have strong fundamentals but also offer potential upside from their use of AI. He recommends looking at companies that are already leveraging existing technologies such as machine learning or natural language processing (NLP).
One company he likes is Microsoft Corporation (MSFT), which has invested heavily in its Azure cloud platform and other related technologies over the past few years. According to Smith, Microsoft’s investments have positioned them well for future growth as they continue to develop new applications powered by their advanced cloud infrastructure and NLP capabilities. In addition, Microsoft’s large customer base gives them access to valuable data sets which can be used for further development of their own products or sold off as part of larger deals with customers who need access to specific datasets or analytics toolsets built around them.
Another company Smith likes is Alphabet Inc., parent company of Google (GOOGL). While Google may not seem like an obvious choice when it comes to investing in artificial intelligence due its reliance on advertising revenue rather than product sales, Smith points out that Google has made significant strides towards developing its own proprietary algorithms based on deep learning techniques which could potentially revolutionize search engine optimization (SEO) practices across all industries if successful enough. Additionally, Alphabet’s acquisition of DeepMind Technologies last year shows just how serious they are about becoming leaders within the field of artificial intelligence research and development going forward – something investors should take note of given the potential returns associated with such advancements down the line..
Finally, Amazon Web Services (AWS) is another stock worth considering according to Smith due largely because AWS offers developers access powerful computing resources needed for training complex neural networks while also providing businesses with reliable hosting solutions tailored specifically towards running sophisticated machine learning models at scale – both areas where Amazon excels compared against competitors like Microsoft Azure or IBM Watson Cloud Platform respectively . Furthermore , AWS provides users with various pre-trained models ready for deployment so businesses don’t need spend time building custom models from scratch – saving time & money along the way .
Overall , these three stocks represent some great opportunities when it comes playing into trends surrounding Artificial Intelligence . With each offering unique advantages & different levels risk involved , investors should do their own research before making any decisions regarding these particular stocks . However , if done correctly , investors could stand gain considerable profits from properly utilizing these picks over long term period .