Top 15 Artificial Intelligence (AI) Stocks to Buy in 2022

As artificial intelligence (AI) has progressed rapidly, many previously impossible experiences have become possible. How can investors invest in this advanced technology that is reshaping society as it continues to disrupt how we live and work?

The following guide is designed to help you become more familiar with artificial intelligence and how companies use it. Additionally, we've compiled a list of popular AI stocks in this fast-growing field.

What is AI?

Artificial intelligence attempts to simulate human intelligence in a machine or computer at an incredible speed and greater accuracy. In the past, humans solved problems, answered questions, and conducted some tasks by hand. 

Companies like Amazon and Google use the technology to program machines to perform these tasks.

AI is becoming more powerful as systems become more brilliant, and its uses and applications are reaching every industry and stock sector. 

For example, a big part of the global economy will change the way electric and self-driving cars work. 

AI is also used in banking to improve decision-making for high-speed trading, automate back-office processes, and cut costs in branch operations by using humanoid robots. 

What role does AI play in stock trading?

Now that artificial intelligence has been made, its features are perfect for trading in the financial sector. With artificial intelligence, numbers can be counted rapidly, and decisions can be based on massive data, which is extremely useful in the stock market. 

With the help of detailed analyses of how stock prices change and the unstructured processing of data, machine learning for trading gives financial firms a full picture of what's going on in the stock market. 

Also, it helps find complicated trading patterns and lets people decide whether to sell or buy in real-time.

Artificial intelligence stocks for 2022: What should you expect?

As AI technology improves, many companies will begin to use AI on a massive scale.

The Internet may become even more integral to our everyday lives by 2022. AI-powered tools and technologies are likely to be adopted by more companies. The growth of this industry will be accelerated. Stock market gains can reflect this.

AI stocks can be risky, as I'm the first to tell you. Their price movements are not steady like blue-chip stocks.

Artificial intelligence penny stocks carry even more significant risks. I enjoy the volatility of penny stocks. With the best risk management strategy, artificial intelligence penny stocks offer many trading opportunities.

Top 15 artificial intelligence (AI) stocks to invest in 2022

There are different types of artificial intelligence companies within the trade market. Each one targets a different sector and works on a different version of AI.

Few publicly traded companies are entirely paying attention to AI. Sometimes, picking AI stocks can be difficult. Although the industry is still in its early stages, it will become more mainstream as it becomes more ingrained in the economy.

These stocks are worth a look in 2022:

1. NVIDIA Corp. (NASDAQ: NVDA)

I believe NVDA will be the top AI stock in 2022. The company provides graphics cards for computer gaming and artificial intelligence systems. The chips it produces are deep-learning chips. Artificial intelligence depends on them.

Many companies use NVDA chips to analyze large data sets to train various models. These systems will determine the pattern to apply to newer data entering the system by analyzing the old data. 

As a whole, NVDA has a good position. Numerous companies rely on NVDA graphics cards.

2. Salesforce.com Inc. (NYSE: CRM)

CRM is already an impressive growth story per se, but its move into AI may allow it to continue growing for years to come.

CRM developed the Einstein tools to improve companies' sales predictions. A company's historical accounts are thoroughly examined by Einstein. This is done to predict which deals are most likely to close very soon.

It can better allocate its resources if it knows one deal is more likely to close than another.

3. Microsoft Corp. (NASDAQ: MSFT)

Founded in 1975, Microsoft is among the most dominant companies globally. The company has continued expanding since it survived the dot-com crash.

Microsoft purchased Canadian artificial intelligence company Maluuba in 2017. Two more AI companies were acquired in 2018. Microsoft's entry into this industry isn't to be taken lightly, given its dominance of the computer market.

4. Alphabet Inc. (NASDAQ: GOOG)

In the same way that Microsoft started its AI ventures by acquiring smaller, non-public AI companies, Alphabet (Google's parent company) has done the same. It has recently acquired a few companies of the same type and belongs to the same firm.

Search engines could be improved by artificial intelligence. GOOG owns several companies that could benefit from breakthroughs in AI.

5. Apple Inc. (NASDAQ: AAPL)

By market capitalization, Apple is known to be the world's largest company. The company's consumer products are primarily concerned with improving the user experience. Special chips power the AI engine in many of the company's new products.

With more than one billion iPhones sold so far, Apple has the potential to put AI in the hands of at least one billion people. This will impact the entire world.

6. Facebook Inc. (NASDAQ: FB)

FB has been involved in several scandals. However, the stock maintains its high valuation. A cash-flow machine, the company's ad revenue shows no signs of slowing down.

By adding artificial intelligence to Facebook's algorithm, profitability could increase. It could help companies spend more on advertising by better targeting their ads.

7. Baidu Inc. (NASDAQ: BIDU)

A lot of people call BIDU the "Google of China." Both companies are internet search engines and offer internet navigation. This is because AI is improving BIDU's search engine. After all, the company is heavily investing in this incredible technology. 

Baidu believes AI can make its products competitive in China's competitive search engine market.

8. Cloudera Inc. (NYSE: CLDR)

I recommend keeping an eye on this lower-priced AI stock. Data management and analytics are provided across the globe by this company. 

Companies can run the analytical queries on the private cloud data centers using Cloudera Enterprise Data Hub. It is among the company's essential products. Cloudera's analytics tools use artificial intelligence (AI).

9. eGain Corp. (NASDAQ: EGAN)

Software-as-a-service provider EGAN is based in the US. Through machine learning and AI analytics, it automates customer engagement.

Companies can analyze their customers' data using EGAN's products. After a boom in October 2020, the stock has fallen back to around $10.

10. Duos Technologies Group Inc. (NASDAQ: DUOT)

The company is involved in developing artificial intelligence platforms. Rail cars are inspected while in motion using this technology. Bridges and tunnels are also secured using this technology.

11. Cheetah Mobile Inc. (NYSE: CMCM)

Verizon (NYSE: VZ) and AT&T (NYSE: T) dominate the telecommunications industry, where CMCM operates.

Cheetah Keyboard personalizes the smartphone experience through artificial intelligence.

12. LAIX Inc. (NYSE: LAX)

This company provides excellent services of artificial intelligence. Well, the company offers Internet-based educational resources. Students learn English through an AI teacher on the platform.

In February, the stock shot up. Former runners are likely to spike again if a catalyst for news and volume are available.

13. Artificial Intelligence Technology Solutions Inc. (OTCPK: AITX)

AIX is one of my favorite AI stocks at the lowest price. AITX provides security and monitoring solutions using artificial intelligence.

Recently, the company announced several new work contracts and deals, driving up prices. A total of $32,152.55 was earned from multiple trades of this stock in 2020 and 2021.

14. Innodata Inc. (NASDAQ: INOD)

Innodata is a global technology engineering company. Companies that implement AI technology may encounter data challenges. This software offers solutions to those challenges. Shares of the company have risen steadily since mid-2020.

15. Remark Holdings Inc. (NASDAQ: MARK)

MARK is a well-known company based in the United States. The company conducts its business worldwide. They develop AI-based technologies for businesses.

The stock has previously run multiday. My trading strategy always involves looking for that in penny stocks.

AI in trading: What are its essential benefits?

Software and tools equipped with artificial intelligence (AI) can analyze large volumes of data, count large sets of numbers and data, and compute them quickly.

These are a few reasons why artificial intelligence has the potential to become a powerful tool both for novice traders and expert market makers.

1. Improved Report representation

By using artificial intelligence, you'll be reducing paperwork. Using AI software, you can generate customizable charts and illustrative reports. 

You can implement various filters in those reports to quickly find the data you need. Thus, you can display your reports on other devices and update them in real-time.

2. Easy to automate

AI can perform routine and automated tasks such as buying and selling stocks. Please put it on automatic mode, integrate it, and go about your day. Your regular trades do not require constant supervision or coordination.

However, it is easy to set AI for regular trades, short sales, stop-limit sales, or other trading functions. 

3. Constantly evolving

Artificial Intelligence is constantly evolving. Neural Processing Units and Natural Language Processing are constantly updated to improve their effectiveness. To automate the process of forecasting and trading, stock trading algorithms are also being improved over time.

We can carry out technical and fundamental analyses with tools like Trade-Ideas. Trade Spider can handle 1-on-1 training. Equbot can analyze over 15,000 trades per day, and Tech Trader can operate without humans.

AI powers all of these tools, and we never know what other interesting AI-powered tools we'll discover in the financial sector with such drastic technological advancements.

4. The ability to forecast and detect patterns

A crucial part of trading is forecasting. Generally, we conduct technical and fundamental analysis before making a purchase. In technical analysis, historical data is studied to determine trading patterns, whereas fundamental analysis looks at the current state of market variables.

Artificial intelligence can use historical data to detect recurring patterns within the stock market. Besides news articles, social media, and blog posts, it can also interpret stock price movements.

A user can use this data to formulate a better strategy and gain a pricing advantage. The user can easily see this data and decide by viewing it in a more accessible format.

5. Cost-savings

Most of your trading work will be automated if you use AI. The maintenance and upgrades of computer programs are expensive, but they significantly reduce the costs of brokers and analysts. They will even reduce the cost of research.

How to choose an AI trading platform? Guide for beginners

You can consider the below-mentioned aspects to get an idea of choosing an AI trading platform for your needs.

1. Requirements for the input

It is essential to figure out how much input you will require. Most algorithms in some tools and apps are pre-programmed for novices. This makes it easy for casual traders or beginners to get started on the game without diving into endless trading options or parameters.

You may want a more comprehensive AI solution if you're an experienced trader or if you want a more active role in your trades. For example, you could set trading conditions down to the micro-level. 

2. Assets supported

Find out if the asset type you wish to trade is supported. In some cases, programs are designed expressly for trading stocks and shares, while others are also suitable for trading forex, crypto, etc.

3. Support for marketplaces

Third, you need to ensure that it is compatible with the preferred marketplace. A third-party broker can still give you access to the market, and not all online brokers have AI platforms.

An AI bot that works well with MetaTrader 4 or 5 is best if you are in the forex market. 

4. Historical results

An AI bot's trading history is an excellent yardstick for gauging its performance, similar to established brokerage firms. You should be able to analyze the performance of a legitimate AI trading platform by examining its trading record.

5. Review of previous users

Finally, listen to user feedback. Think about the success rate versus the failure rate, the level of support, and how easy the software is to use. 

Consider reading reviews on the Appstore or Google Play Store if the AI is a mobile app. You can even search the Better Business Bureau or the software review sites to get an idea about the vendor's ratings. 

AI stocks: why should you trade them?

As a trader, you should never miss out on an opportunity. Artificial intelligence penny stocks are offering numerous trading opportunities. As AI technology advances, some new uses are being discovered.

Self-driving cars already exhibit many of these traits. Who knows what innovations will change our lives in the future?

AI stocks are not at all different from other sectors. They can go up or down. New information comes and goes.

It would help if you understood how to capitalize on a particular hype, trading news, and specific volume in AI stocks. Create a watchlist first and monitor the news for patterns or strategies that match.

Which is the best stock for AI?

It would help if you chose artificial intelligence stocks based on your trading style and strategy. Large-cap stocks might be the best choice for AI investors. Keep a closer look to see what is moving when trading with artificial intelligence penny stocks. Research first! 

Which AI stocks are the best for self-driving cars?

A few major auto manufacturers are developing AI for self-driving cars. In addition, they are also teaming up with some other companies such as Aptiv (NYSE: APTV) and Intel (NASDAQ: INTC). These companies are already working on developing smart chips and sensors for different automotive uses.

Is AI a good investment?

Your investment strategy, the market, and the stocks you choose will determine that. Artificial intelligence is a new technology. It has a lot of promise. Following and monitoring AI stocks can lead to successful trades.

FAQs

1. Is AI useful for trading?

However, many traders might wonder how AI can be used to trade stocks. This is a vast field. Traders and investors can use AI for price prediction, portfolio management, decision making, and many other tasks.

2. Does AI trading work well?

Stock picks generated by the AI system exceeded the market by 1042%, with 70% accuracy. Several stocks gained 1% or more from the moment they were picked until they were evaluated for accuracy. Prices cannot go lower than specified stops.

3. Is AI able to predict stocks accurately?

During the 2010 flash crash, traders found it hard for the machines to predict black swan events. Stock market prediction by AI is doomed to failure.

4. How much money is put into AI?

Globally, companies invested almost 68 billion dollars in artificial intelligence (AI) in 2020, a significant increase from the previous year.

Final thoughts 

This article aims to give a solid overview of some concepts and trends, explaining why artificial intelligence has promising investment potential. Investing in AI gives investors a lot of exciting possibilities for the future, but they should be careful. 

Always do your research to avoid losing money when investing. Virtually every industry is incorporating AI technology. Think about how your financial health will be affected by the investment decisions you make.