5 Promising AI Companies to Invest in Now: A Guide to Future Returns

Want to Invest in the Future? Check Out These 5 Promising AI Companies That Could Bring You Big Returns!

Image courtesy of Arnesh Yadram via Pexels

Artificial intelligence (AI) has come a long way in recent years, and its influence is only growing stronger. The investment potential in AI companies is huge, as organizations worldwide seek to leverage the power of machine learning and other AI technologies for business innovation.

Investing in AI companies can be a sensible way to target success in the market. However, with so many options to choose from, how do you know which companies are truly worth backing?

In this curated guide, we will be discussing and analyzing the top AI companies you need to watch in 2021. By the end of this article, you will have all the information you need to make informed decisions about AI-focused investments.

Criteria for Choosing AI Companies

Before we dive into the top five AI companies to invest in, here are some key factors we took into consideration when curating this list.

Financial Performance and Metrics

First and foremost, an AI company's financial performance plays a vital role in determining its potential for growth and profitability. We looked at each company's revenue performance, profitability margins, and stock prices over the last few years to factor in this financial aspect.

Key Partnerships and Collaborations

Creating partnerships and collaborations with other AI companies, government organizations, and the wider business world is a sure-fire way to boost an AI company's prospects. More significant collaborations often mean there are unique technologies and intellectual property shared that could expand growth potential and sustainability of a company.

Future Growth Potential and Plans

Lastly, we took into account each company's business models, future plans, and industry outlook to predict their growth potential over the next few years. Companies that seem to have a solid roadmap, innovative solutions in the pipeline, and a natural ability to adapt to the ever-changing landscape of AI were much more desirable to us.

Top 5 AI Companies to Invest In

Here are the five best AI companies to invest in right now – based on our comprehensive research detailed in the above criteria – and why you should have them on your radar.

Microsoft

Founded in 1975, Microsoft is hardly a new kid on the block; however, it is still a vital player in the AI industry. Some of the key reasons we feel it is worth investing in are:

• Microsoft has been engaged in AI technologies since the early 1990s, giving the company a formidable lead over many of its competitors
• The company is continually innovating within AI, with a particular focus on natural language processing (NLP), machine learning, and computer vision
• Microsoft has recently launched Azure Machine Learning, which simplifies and democratizes machine learning for a broader audience. It aims to make AI more accessible to everyday businesses that may not have the dedicated infrastructure to host machine learning models themselves

Alphabet (Google)

The fourth biggest public company by market capitalization, Alphabet (Google), continuously remains an enviable option for any investor in the tech industry. Here is why we believe Google is an excellent choice for AI investment:

• Google has an extensive and diverse footprint in the AI space which bodes well for them in this era of innovation in artificial intelligence
• Google has been developing hardware specifically designed to optimize AI and machine learning in recent years. Their new Tensor Processing Units (TPUs) can accelerate machine learning tasks by up to 30x more than traditional CPUs
• Google is now working to develop an AI infrastructure that will be utilized by other businesses. This program is called AutoML, which aims to make it easier for companies to build custom AI models that will help them push their businesses forward

IBM

IBM, a technology and consulting corporation, has been a significant player in the modern computing world since the 50s. IBM is a top AI company worth placing on your AI investment portfolio. Here's why:

• IBM is one of the most remarkable companies in AI. According to Fortune, IBM appeared as the most extensive AI patent holder in the United States in 2019, with approximately 1,600 patents in machine learning or deep learning technology
• IBM has been steadily investing in AI for years, resulting in great successes such as IBM's Watson, which has been used effectively in finance, healthcare, and retail. With demand in different sectors for Watson, IBM is poised to be one of the leading AI companies moving forward
• The company's most recent investment in AI has been on Quantum computing and a platform for the operation of this technology that has enormous potential to shape our future world

Nvidia

Nvidia Corporation is a corporation that has a strong focus on visual computing technologies, including computer graphics, virtual reality, and AI. Nvidia has great sustainability and growth potential in the future, with many reasons supporting that claim. These include:

• Nvidia holds an established foundation in the gaming and visual computing world, which puts them at an excellent starting position for AI, as the two worlds have a lot in common. Nvidia's unique hardware and AI-specific chips outperform companies such as Intel and AMD, making Nvidia an attractive choice for developing incredibly powerful, complex AI algorithms
• Nvidia is well-diversified and has been focusing on a wide variety of applications of its AI hardware, from self-driving cars and data centers to AI applications in gaming consoles
• Nvidia has an excellent track record of incorporating deep learning technologies and other AI advancements into its products. Its widely-used library of software tools can help developers incorporate elements such as parallel processing and deep learning neural networks into their applications quickly and easily

Amazon

Amazon is one of the most dominant forces in the world of e-commerce, but how significant is their presence in the AI industry? Below are some reasons why Amazon is a fantastic choice for investment:

• The AI capabilities of Amazon Web Services (AWS) have been utilized by businesses worldwide to create best-of-breed applications and services. In 2020, Amazon spent a massive $35 billion on research and development (R&D), with a significant portion focusing on AI development
• Amazon's cloud computing service AWS can scale quickly, which puts the company in an excellent position to leverage the ever-growing demand for AI services worldwide
• Amazon has entered the healthcare industry through its partnership with Berkshire Hathaway and JP Morgan in 2018. It aims to improve on the healthcare system with its AI services

Up-and-Coming AI Companies to Watch

Here are four up-and-coming AI companies that we feel have the potential to be disruptive and innovative in the space, as well as being investment hotspots in the coming years.

UiPath

UiPath is an American software company that specializes in robotic process automation (RPA). It has grown significantly in the RPA industry, with 30% global RPA market share. This explains why UiPath could be an excellent company to look out for in the AI investment space. Other reasons to watch UiPath include:

• UiPath has been vastly sought out by business corporations worldwide, which is evident by the company's 70% revenue growth since 2018. UiPath has raised money from several investors and completed multiple funding rounds, with a valuation as $10.2 billion in 2020 according to Forbes
• UiPath has been rated an industry leader by Gartner and other industry analysts in the AI space
• UiPath has done well to focus on combining machine learning and RPA technology for uniquely customizable workflows

DataRobot

DataRobot is another American software company that focuses on machine learning and automated machine learning with an end-to-end platform. The company has already attracted over $800 million in funding and several notable partnerships, which make it an excellent AI investment candidate. Here is why we feel DataRobot is a promising option:

• DataRobot has an excellent track record in the growingly popular field of business intelligence and analytics, being configurable for different use cases and industries
• DataRobot collaborates with other best-in-class companies like Snowflake to integrate and use their cloud data platforms, and the OpenAI team to explore AI and automate processes for problem-solving
• DataRobot's user-friendly AI platform has enabled average person accessibility in creating custom, automated machine learning models without needing expert knowledge

C3.ai

C3.ai uses AI technology to improve enterprise solutions, such as predictive maintenance in oil and gas industries, improving yields in agriculture, and enhancing energy efficiency in manufacturing, among others. The company recently went public in late 2020, a significant milestone that makes it all-the-more attention-worthy. Here's why we believe in C3.ai for investing:

• C3.ai has notable partnerships across a range of different industries, including oil and gas, utilities, banking, and healthcare. C3.ai collaborates with customers and other tech corporations to test, develop, and design new AI applications that can provide solutions to problems effectively
• C3.ai has an easy to use and customizable platform for customers to develop their applications by building on top of frameworks provided by the company
• C3.ai has shown sustainable growth with a revenue increase of 71% in 2020, which is a promising sign for investors who look at financial performance as a key factor for investments

Zymergen

Zymergen, a company based in California, is looking to change the world through AI and synthetic biology technologies. Its vision is to create standardized, high-throughput ways to identify and engineer microbes that form the building blocks of a wide range of synthetic products. Here are a few reasons why Zymergen is an exciting and promising AI investment opportunity:

• Zymergen is a unique company as it operates within its industry. It uses machine learning algorithms and AI to create a closed feedback loop that creates the best microbial for a product and through precise engineering and automation efforts pushes these microbial to their utmost potential for an optimal performance of the synthetic product. The platform has improved the creation of consumer goods, resulting in unique and superior sustainable products
• Zymergen announced recently that the company intends to go public via an SPAC merger, which could lead to enhanced growth and innovation for the worthy cause it's working towards

Conclusion

AI investment is becoming more apparent by the day, and many of the most promising AI companies bring unique approaches to the table. Our top five companies to watch in the AI space – Microsoft, Alphabet (Google), IBM, Nvidia, and Amazon – have a proven track record of innovation and potential for long-term business success.

For up-and-coming AI companies, UiPath, DataRobot, C3.ai, and Zymergen are innovative and novel ways to approach AI investment. Although these companies lack the longevity of the previous companies, they are making big moves in the space and are excellent candidates for investment opportunities.

Knowing where to invest your money is a matter of understanding what you're looking for in a company and the potential gains. While there are no guarantees, the AI companies mentioned in this article offer compelling investment options to maximize your return.

Before you venture into the AI investment world, make sure you are armed with all the necessary information. Using an AI-based content generator like Texta.ai is a quick and efficient way to create investment content tailored to your specific requirements. Sign up for a free trial of Texta.ai today and start creating valuable investment content with ease.

‍