By Maya Sasson
Artificial intelligence (AI) is making its way into almost every industry, and into many investors’ portfolios. AI refers to the use of data to simulate human intelligence processes including learning, reasoning and self-correction by machines. With IDC predicting that the amount of data being produced will reach 40 trillion gigabytes by 2020, the implications of this technology in terms of efficiency are massive.
This fact has not been ignored by Wall Street. Analysts say that plenty of compelling investments can be found within this space.
Let’s take a closer look at 3 AI stocks garnering praise from the Street.
Nuance Communications Inc. (NUAN)
Nuance wants to change the relationship between people and technology with its conversational AI. Its solutions can be utilized within the healthcare, automotive, financial services and several other sectors of the market. With shares up 28% year-to-date, some analysts say this AI stock is just getting started.
Investors have been impressed with the company’s shift in strategy. NUAN’s new approach focuses on its solutions geared towards healthcare and enterprise. As a part of these efforts, it agreed to sell Kofax its imaging business for $404 million and will split the automotive segment into a separate company in October. This will allow the company to put its resources towards expanding its AI Software-as-a–Service (SaaS) platform to capitalize on the growing need for digital medical records.
CrowdStrike Holdings Inc. (CRWD)
This newly public company believes AI can help fight off hackers in the battle against cyber threats. Gartner’s leader in the cybersecurity space is already up 52% since its June 12 IPO with a slowdown not expected anytime soon.
The company currently uses machine learning, one type of artificial intelligence, to find malware on devices operating on a corporate network. That being said, CRWD has remained committed to expanding its product offerings. On August 6, it announced the launch of the newest addition to its Falcon platform, CrowdScore. The metric allows customers to instantly see the real-time threats their organizations are facing so they can quickly respond.
The last AI stock on our list uses the technology to provide customer relationship management (CRM), marketing and sales software to simplify customer acquisition. It doesn’t hurt that shares are already up 60% year-to-date, with some analysts picking this stock based on its potential for even further long-term growth.
HubSpot’s existing AI-based solutions use data to help businesses gain valuable insights regarding what content drives the most traffic as well as make predictions on sales leads, with new products constantly being added.
By Maya Sasson for TipRanks
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.