Best AI Stocks

Artificial intelligence has been a scorching hot investment trend during this bull market run

And while some AI winners have slowed a bit this summer, investors and analysts remain bullish the long-term potential of this innovative nology

AI stocks have been volatile lately, but volatility can also present opportunities to get stocks at a reasonable price

If you’re interested in in AI, here are seven stocks to watch this summer

A core focus is Azure AI, viding cloud-based AI services for es

The company is also exploring natural language cessing, computer vision, and machine learning

Beyond innovative nology, Microsoft emphasizes responsible AI, ensuring its developments align with ethical guidelines

Notable jects in this area include AI for Good, which addresses global challenges climate change and hunger, and ject Alexandria, which creates a knowledge base for es using AI

From a nical standpoint, MSFT s are trading near all-time highs but still have a reasonable 38. 4 P/E ratio and a Relative Strength Index (RSI) reading of 51, well below the overbought level

NVIDIA Corp. (Nasdaq: NVDA)NVIDIA is one of the strongest AI stocks in the market, primarily thanks to its constantly in-demand GPUs

These GPUs have the cessing power required for the most complex machine and deep learning algorithms, making them necessary tools for AI development

The firm’s focus extends beyond hardware, offering software platforms and development kits to support AI reers

NVIDIA’s work spans various AI applications, including self-driving cars, medical imaging, natural language cessing, and games

The company’s re arm also explores the boundaries of AI, pushing the nology forward with jects in areas computer vision, robotics, and generative AI

For now, NVIDIA is the computational backbone for much of the world's AI advancements

The company’s stock has seen a transcendent rise over the last two years but has been rangebound since the 10-1 stock split announcement

However, the next earnings call is scheduled for Aug. 28, which could pel s out of the current range

Meta Platforms (Nasdaq: META)META has devoted significant resources to AI development in its social media platforms and the Metaverse

Their AI re focuses on natural language cessing, computer vision, and machine learning to enhance user experiences

This includes AI models for image recognition, content moderation, and personalized recommendations

Much of the company’s AI efforts are directed toward building the Metaverse, a virtual reality universe

This involves creating AI systems that understand and respond to human interactions within this digital environment

Additionally, META is exploring AI for augmented reality applications, such as virtual assistants and smart glasses

Other jects include the Llama 2 open-source large language model and Cicero, which claims to be the first AI to play the strategy game Diplomacy at a human level

ServiceNow Inc. (NYSE: NOW)ServiceNow is primarily known for its cloud-based platform that helps es manage workflows and IT operations

However, the company has also invested significantly in AI to enhance its platform and free up human clients for more complex tasks

ServiceNow's AI strategy centers around intelligent automation, which involves using AI to line and automate various cesses

Some areas where this focus is magnified include Natural Language cessing (NLP) to understand and respond to user queries, machine learning algorithms to analyze data and identify trends, and AI-powered virtual agents to handle routine (and mundane) tasks and inquiries

The company also has an upcoming catalyst when it reports earnings on July 24

Palo Alto Networks Inc. (NYSE: PANW)Palo Alto Networks is a cybersecurity sector champion that heavily leverages AI to tect organizations from evolving online threats

The company utilizes AI and machine learning algorithms to analyze vast amounts of security data, identifying malicious activity patterns

This enables them to detect and prevent zero-day attacks, ransomware, and other sophisticated threats

AI automates routine security tasks, such as incident response and threat hunting, freeing security teams to focus on more strategic initiatives

As attackers increasingly use AI themselves, Palo Alto Networks is defenses Precision AI to counter these complex AI threats with other forms of AI and create a more resilient security infrastructure

The stock’s P/E ratio is 48. 2, but the 57 RSI shows that s have yet to reach overbought territory

Taiwan Semiconductor Co. (NYSE: TSM)If you want to make money during a gold rush, why not sell shovels to spectors

That’s the idea surrounding an investment thesis in Taiwan Semiconductor Co. , which vides many of the other companies on this list with vital components needed for their AI cesses

AI models require immense computational power to train and operate

This magnitude of power is derived from specialized chips, which enable them to cess vast amounts of data rapidly

TSM is a key player in manufacturing these chips, and its advanced semiconductor fabrication operations allow for the duction of smaller, more powerful, and energy-efficient chips

In other words, TSM's ability to duce leading-edge chips is a cornerstone of the AI revolution

Without their advanced manufacturing capabilities, AI application development and deployment could be significantly hindered

The firm drives innovation in semiconductor nology, which in turn fuels advancements in AI

Celestica Inc. (NYSE: CLS)Not all AI innovation happens in large-cap firms

S of mid-cap electronics manufacturer Celestica Inc

Have more than doubled in the last year thanks to high demand for its components that underlie AI infrastructure

A significant portion of Celestica's AI-related work revolves around manufacturing network switches

These high-performance switches are critical components in data centers, where AI models are trained and deployed

The company's expertise in designing and ducing these switches is essential for building the infrastructure required for AI applications

Furthermore, Celestica is actively involved in cutting-edge networking solutions specifically designed for AI and machine learning applications

Their high-speed switches, for example, facilitate rapid data transfer within data centers, which is essential for training and deploying AI models

What Makes a Good AI Stock

Picking the best stocks in any particular sector or industry is challenging, especially in volatile and evolving ones AI

Here are four key factors to re when selecting the best AI stocks

Catalysts – A catalyst is some kind of news or event that gets a stock moving, an earnings release, duct launch, insider purchase, or upgrade/downgrade from a stock analyst

Ject Pipeline – What types of AI jects does the company have on its radar

Do they duce components TSM or CLS, or are they training new models META or PANW

Make sure your AI investments have a bright pipeline of future jects; otherwise, they could lag behind the ones that continue to expand and innovate

Management Team – While reing the company, don’t neglect to re the executives and managers either

Are they attracting top talent

Do they have a history of success in similar industries

Are there any skeletons in the closet that you should be aware of

Faulty leadership can sink even the most innovative companies

Nical Signals – Finally, if you’re looking for stocks that are to make a big upward move, you’ll want to pay attention to nical trading signals and analysis, as well as fundamental data earnings growth and price ratios

A breakout signal an RSI oversold reading or a cross over the 50-day moving average could trigger a move before any major news reaches the market

Choosing the Right Brokerage for AI StocksWhen in AI stocks, you’ll want to choose a broker that has access to s and suits your style and investment goals

Here’s a list of our favorite online brokerages and what type of investor they’re best suited for

Com ReviewBest For:Trading IdeasVIEW S & CONS:securely through public

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ComRobinhood ReviewBest For:BeginnersVIEW S & CONS:securely through Robinhood's websiteGet Started with RobinhoodTradeZero ReviewBest For:Global Broker for Short SellingVIEW S & CONS:securely through TradeZero's websiteGet Started with TradeZero Dan SchmidtDan Schmidt is a finance writer passionate helping readers understand how assets and work

He has over six years of writing experience, focused on stocks

His work has been published by Vanguard, Capital One, PenFed Credit Union, MarketBeat, and Fora Financial

Dan s in Bucks County, PA with his wife and enjoys summers at Citizens Bank Park cheering on the Phillies.