25 Best Artificial Intelligence Stocks to Buy Right Now | The Motley Fool (2024)

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$2,865B

Artificial intelligence (AI) has emerged as one of the most transformative technologies of our time, with applications spanning nearly every industry imaginable. From autonomous vehicles to drug discovery and content creation, AI is reshaping the way businesses operate and innovate.

This technological revolution presents a unique opportunity for investors looking to capitalize on the growth potential of AI-driven companies. Keeping with this theme, here are 25 of the best AI stocks to consider, listed alphabetically.

These companies include tech leaders with substantial AI initiatives and highly specialized companies focused solely on AI development and/or implementation. Read on to find out more about these leading innovators in the fields of machine learning and AI.

25 best artificial intelligence stocks

1. Adobe (ADBE -2.86%): The creative-software company is integrating AI into its products to enhance user capabilities and streamline workflows. Its Sensei AI platform powers features across its Creative Cloud suite.
2. Advanced Micro Devices (AMD -0.15%): AMD produces high-performance processors and graphics cards essential for AI applications. The company's data center GPUs are increasingly used for AI workloads.
3. AeroVironment (AVAV -9.68%): This defense technology company develops AI-powered autonomous drones and unmanned aircraft systems. Its products are used in military and commercial applications.
4. Alphabet (GOOGL 0.38%): Google's parent company is a leader in AI research and development. Its DeepMind division is at the forefront of AI innovation.
5. Amazon (AMZN -0.86%): The e-commerce leader uses AI extensively in its operations, including product recommendations and logistics optimization. Amazon Web Services (AWS) also offers AI and machine-learning services to clients.
6. Apple (AAPL -2.78%): Apple incorporates AI into many of its products and services, including the Siri voice assistant, Face ID, and camera features. It continues to invest heavily in AI research and development with the stated goal of being a leader in the space.
7. Broadcom (AVGO -2.19%): This semiconductor company produces chips used in AI applications, including data centers and networking equipment. Broadcom's products enable faster AI processing and improved connectivity.
8. CrowdStrike Holdings (CRWD 3.35%): CrowdStrike leverages AI in its cybersecurity platform to detect and prevent threats in real time. Its Falcon platform uses machine learning to analyze vast amounts of data for potential security risks.
9. IBM (IBM 1.10%): IBM has a long history in AI, with its Watson platform being one of the earliest high-profile AI systems. The company continues to develop AI for various industries, including healthcare and finance.
10. Lockheed Martin (LMT 0.53%): This aerospace and defense company uses AI in its military systems and spacecraft. It is developing AI-powered autonomous systems for various defense applications.
11. Meta Platforms (META 1.75%): Meta is investing heavily in AI for content moderation, targeted advertising, and its metaverse initiatives. Its AI research lab is a leader in natural language processing and computer vision.
12. Micron Technology (MU -4.43%): Micron produces memory and storage solutions crucial for AI applications. The company's high-bandwidth memory products are designed to meet the demanding requirements of AI workloads.
13. Microsoft (MSFT 0.17%): Microsoft integrates AI across its product line, from Office 365 to Azure cloud services. A partnership with OpenAI has led to the development of advanced language models like GPT-4.
14. Nvidia (NVDA -1.95%): Nvidia's GPUs are the gold standard for AI training and inference. The company's data center revenue has grown significantly due to increased demand for AI computing power.
15. Palantir Technologies (PLTR 2.02%): Palantir's data analytics platforms leverage AI to provide insights for government agencies and commercial clients. Its software is used in areas such as defense, healthcare, and finance.
16. Recursion Pharmaceuticals (RXRX 1.22%): This biotech uses AI to accelerate drug discovery and development. Recursion's platform combines biological and chemical data sets with machine learning to identify potential new therapies.
17. Rockwell Automation (ROK -0.32%): Rockwell integrates AI into its industrial automation to improve manufacturing efficiency and predictive maintenance. The company's FactoryTalk Analytics platform uses machine learning to optimize production.
18. Sanofi (SNY 0.35%): This pharmaceutical company is leveraging AI in drug discovery and development. Sanofi has partnered with AI leaders like OpenAI to accelerate the identification of potential new treatments.
19. Serve Robotics (SERV -9.00%): Its autonomous sidewalk delivery robots are powered by AI. They use machine learning to navigate urban environments safely and efficiently.
20. SoundHound AI (SOUN -1.86%): SoundHound specializes in voice AI technology for various applications, including automotive uses and Internet-of-Things devices. The company's voice-recognition and natural-language understanding capabilities are used by major brands worldwide.
21. Taiwan Semiconductor Manufacturing (TSM -1.98%): As the world's largest contract chipmaker, TSMC produces semiconductors essential for AI. Its advanced manufacturing processes enable the production of high-performance AI chips.
22. Tesla (TSLA -1.52%): Tesla is at the forefront of AI development in the automotive industry, with its autopilot and full self-driving systems. Elon Musk's company is also developing AI-powered humanoid robots for various applications.
23. Teradyne (TER -2.48%): Teradyne provides automated test equipment for semiconductors and other electronic systems. They're crucial for ensuring the quality and reliability of AI chips and components.
24. Zebra Technologies (ZBRA 1.87%): Zebra develops AI-powered asset-intelligence solutions for various industries. The company's products include mobile computers, scanners, and printers that use machine learning to optimize workflows.
25. C3.ai (AI 1.22%): C3.ai provides enterprise AI software for building and deploying large-scale AI applications. The company's platform enables organizations to develop and scale AI solutions across various industries.

The big picture

The AI market presents a diverse range of investment opportunities across multiple sectors and industries. Companies like Alphabet, Microsoft, and Nvidia are leading the charge in AI development, while smaller specialized companies are also making significant contributions to the field.

As a result, the best approach to gaining exposure to this megatrend might be to own a basket of AI-centric stocks that cover top players like Nvidia and Apple, as well as up-and-comers like Serve Robotics.

Alternatively, you could buy an AI-themed exchange-traded fund, although most of these specialized funds charge hefty fees, which can significantly dampen returns over the long term.