Top 10 Artificial Intelligence (AI) Stocks Company for Future-Proofing Your Portfolio

In today’s rapidly evolving technological landscape, virtually every industry is being disrupted by artificial intelligence, automation, and robotics in some way. Recent advancements in AI technology, such as OpenAI’s ChatGPT AI chatbot, Google’s Bard AI chatbot, and Microsoft’s Copilot AI assistant, have provided a firsthand look at the transformative power of AI. Whether it’s machine learning, large language models, smart applications, digital assistants, synthetic media software, or autonomous vehicles, companies that fail to invest in AI products and services risk falling behind. However, not all companies are created equal in the AI arena, and some stocks offer more significant potential for investors.

Here, we present the top 10 AI stocks to buy, as recommended by Bank of America, each with its unique strengths and growth potential:

1. Microsoft Corp. (MSFT)

Implied Upside: 29.2% Microsoft made a significant investment in OpenAI and integrated ChatGPT into its Bing search engine. With a multi-billion-dollar commitment to AI technology, Microsoft is poised for meaningful revenue and operating income growth.

2. Alphabet Inc. (GOOG, GOOGL)

Implied Upside: 10.2% Google’s parent company, Alphabet, utilizes AI in various aspects of its business, including ad pricing, content promotion, and spam filters. Its Bard AI chatbot and AI-driven tools have strong potential, making it a buy-rated stock.

3. Nvidia Corp. (NVDA)

Implied Upside: 49.4% Nvidia provides essential processing power for advanced AI applications and recently partnered with Google to advance AI computing. With dominance in AI training technology, Nvidia’s future earnings look promising.

4. Meta Platforms Inc. (META)

Implied Upside: 24.6% Meta Platforms, the owner of Facebook and Instagram, is focusing on AI integration across its platforms. The launch of AI Sandbox and ongoing AI development projects suggest potential growth in the AI sector.

5. Taiwan Semiconductor Manufacturing Co. Ltd. (TSM)

Implied Upside: 46.4% As the world’s largest semiconductor foundry, TSM manufactures AI chips for leading companies. It’s investing heavily in advanced packaging facilities to meet the increasing demand for AI chips, making it an attractive investment.

6. ASML Holding NV (ASML)

Implied Upside: 42% ASML produces critical equipment for semiconductor fabrication, including AI chip manufacturing. Despite underperformance in 2023, ASML’s long-term growth trends make it a compelling buy.

7. SAP SE (SAP) 

Implied Upside: 21.9% SAP, a global leader in enterprise resource planning software, offers AI-driven solutions for various business processes. Ongoing cloud momentum and generative AI monetization contribute to its growth potential.

8. RELX PLC (RELX)

Implied Upside: 16.5% RELX provides information and analytics services and has been incorporating AI and machine learning across its divisions. The launch of Lexis+ AI platform and AI-enabled products in the legal division suggest medium-term growth.

9. Arista Networks Inc. (ANET)

Implied Upside: 21.7% Arista Networks supplies cloud networking solutions, essential for AI workloads. Its cloud-based, AI-driven network identity service positions it well to capitalize on the growing demand for AI-related bandwidth.

10. Baidu Inc. (BIDU)

Implied Upside: 71.9% As the leading Chinese internet search provider, Baidu has made strides in AI, launching Ernie Bot and several AI-based applications. Its impressive initial traction in China and AI upside make it a promising investment.

Read More: Top 15 National Universities with Largest Endowments