According to Grand View Research, the global artificial intelligence (AI) market was worth an estimated $62 billion in 2020 but could grow 40% annually through 2028. If you don't yet have AI stocks in your long-term portfolio, it might be time to start thinking about it. The market's recent sell-off of technology and high-growth companies has created a great buying opportunity for bold and patient investors. Here are three top AI stocks building moats around their algorithms and whose stocks are attractively priced today. Technology can change at a blistering pace, and nobody can know for sure that the winners of today will still hold their crown tomorrow, a year from now, or a decade from now.
Throughout history, technology has never advanced as quickly as it is right now. It's becoming harder than ever for investors to track the sheer number of innovative tech companies in the public markets, each offering its own unique vision for the future. But perhaps no technology is more transformative than artificial intelligence (AI), which is already being deployed to complete highly complex tasks in a fraction of the time that humans can. According to one estimate, up to 70% of companies worldwide will have integrated some form of AI into their businesses by 2030, adding $13 trillion in additional output to the global economy. There will be no shortage of opportunities in the sector over the next decade, but these two stocks might be a great place to start given they're trading at hefty discounts to their all-time highs amid the broader tech sell-off.
The insurance and lending industries are centuries old and have evolved little despite their long histories. These three emerging companies are using artificial intelligence to disrupt these old industries and are trading off their 52-week highs; their stocks offer potential upside that makes these AI stocks worth considering in August. Banks have relied on the Fair Isaac, or FICO, credit score system for decades to determine whether a customer would be able to pay back a loan or not. It is a rigid system that makes it difficult for those with little or no credit history or to get approved for loans, even if they can pay them back. Upstart Holdings (NASDAQ:UPST) uses artificial intelligence to make lending decisions by utilizing many data points that a FICO score doesn't account for, giving lenders using Upstart's technology a more complete picture of a potential borrower's ability to pay.
The dawn of the internet changed the business world forever. It created an opportunity for the smallest of merchants to reach the furthest corners of the globe, and for large corporations, it redefined what it means to be multinational. Artificial intelligence offers an expansion of the digital revolution, with the capability to rapidly complete tasks once impossible without significant amounts of human input. Capturing this in your portfolio might be crucial to outsize returns over the next decade, and our Motley Fool contributors think Upstart Holdings (NASDAQ:UPST), CrowdStrike Holdings (NASDAQ:CRWD), and UiPath (NYSE:PATH) could be among the most explosive ways to do it. Anthony Di Pizio (Upstart): Most consumers are familiar with the FICO scoring system.
Artificial intelligence (AI) and its subsectors like machine learning are set to transform the way we do business. Some companies are already leveraging these advanced technologies to carry out complex tasks instantaneously, removing the need for countless hours of human input. AI offers predictive capabilities unlike any tools we've seen in the past, helping organizations anticipate critical failures in their equipment, software, and overall processes. The AI industry had an estimated addressable market of $93 billion in 2021, but that's expected to soar tenfold to $997 billion annually by 2028. These five stocks can help you ride that explosive AI industry growth and turn it into stock price growth. C3.ai ( AI -9.82%) is a first-of-its-kind enterprise AI company.