AI Innovators: 3 Future Stock Leaders To Watch Now

| February 29, 2024

Applying artificial intelligence has unleashed the potential of these three stocks

  • The increasing complexity of artificial intelligence has taken it from chatbot to revolutionary technology for these three companies.
  • Nvidia (NVDA): The golden child keeps on winning, providing record returns quarter after quarter with its wide variety of successful AI applications.
  • CrowdStrike (CRWD): As more computer systems integrate AI, CrowdStrike’s approach to behavioral models and machine learning could lead to better security.
  • Arista Networks (ANET): With the intense network processing needs of AI, Arista’s expertise in internet computing provides a prime position for future profits.
Source: Pixaby

Recently, more and more companies are offering AI-powered solutions and products every day to ride the wave of AI stocks. Yet for investors, this can be confusing, as just because a company claims to incorporate AI, doesn’t necessarily mean profitability. Now, more than ever, understanding the value an AI brings to a technological product or service is critical for investing.

The projects investors should look out for tend to have two different identifiers for determining product value. The first is any application where AI provides a generative product, such as a chat answer or a visual image. This is the application most commonly thought of when discussing AI, but it’s far from the most lucrative. AI computing applications, like data interpretation and network processing, are the second and most impactful to the tech industry.

For investors looking to understand these applications, these three AI stocks provided insight into the long-term potential of artificial intelligence.

AI Stocks: Nvidia (NVDA)

Recently, Nvidia (NASDAQ:NVDA) seems to be at the center of the AI universe thanks to aggressive investing in the integration process. This is because the tech giant applies its expertise in graphics processing units to accelerate AI development. As such, there are three major projects currently driving Nvidia’s meteoric rise that investors should watch.

First, the Nvidia DGX Systems are custom supercomputers that specialize in data processing for AI learning and research. Second, the Nvidia Deep Learning Institute offers expert-level education to developers looking to apply AI to their projects. Third, and potentially most important, Nvidia’s new A100 Tensor Core GPU has a memory bandwidth of 2 terabytes per second. 

Therefore, the GPU can process data at never-before-possible speeds, exponentially accelerating the learning speed of current large language models. As Nvidia continues cementing its market dominance, innovation-driven investors cannot afford to pass up the best AI stocks.

CrowdStrike (CRWD)

With its 2023 revenue reaching over 2.24 billion dollars, CrowdStrike’s (NASDAQ:CRWD) rise to success has been astonishing. In an increasingly connected and computerized world, CrowdStrike’s focus on cybersecurity has led to a highly profitable business model. Continuing this success now hinges on using AI computing to protect networks as the industry booms.

To achieve this, CrowdStrike currently leverages AI and machine learning algorithms to scan networks in real-time and detect threats. Further increasing security, CrowdStrike also uses AI to recognize dangerous behavioral patterns that could lead to new cyber attack methods. Ultimately, CrowdStrike’s AI applications rely on high-speed data processing to decide how to keep a customer’s network safe.

Thanks to this innovative AI-driven cybersecurity approach, CrowdStrike maintains a strong buy rating. Moreover, as the future of computing moves towards the cloud, CrowdStrike profits could soar alongside AI stocks.

Arista (ANET)

With a 31% annual stock growth rate, Arista Networks (NYSE:ANET) now plans to use AI as rocket fuel to keep climbing. Arista specializes in telemetry and analytics using network switches to keep a finger on the pulse of internet traffic flows. The company also currently offers services in security and protection, as well as intent-based networking. 

To maximize profits using AI, Arista will likely use machine learning to take high-level business objectives and apply them to network policy. By doing so, Arista assures that policy compliance flows down thoroughly throughout network requirements.

Furthermore, Arista networks could continue to benefit from the expanding popularity of generative AI. That’s because it increases demand for network switches for training large language models, which directly influences Arista’s offerings. Savvy investors would be wise to jump on Arista’s transition into becoming one of the AI stocks of the future.

This post originally appeared at InvestorPlace.

On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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