The Future of Artificial Intelligence: 10 Companies, 10 Predictions
In this article, we discuss the future of artificial intelligence, including 10 predictions about 10 companies.
The future of artificial intelligence (AI) is a topic of much speculation and debate. Some experts believe that AI has the potential to revolutionize many aspects of society and industry, while others are more cautious about its potential impact. The artificial intelligence sector is thriving across the globe. AI-enabled tools, like smarter chat-bots for customer service and robots for self-service at banks, are gaining traction in the mainstream. AI applications are also present in home appliances, phones, hospitals, agriculture, and the military. Globally, AI has been rapidly integrated into corporate processes to improve business operations.
An increase in demand for smart homes and smart cities is expected to propel the artificial intelligence chip market growth going forward. Though 2022 was a rough year for businesses, the stock market tanked, interest rates spiked and many thousands of people lost their jobs, there was exponential growth in the AI industry in 2022 as projects like self-driving cars became immensely popular. By 2030, it is expected that artificial intelligence is projected to contribute $15.7 trillion to the global economy, representing 26% of the global GDP.
According to recent research, the global AI Chip market is expected to grow to $49.26 billion in 2026, expanding at a CAGR of 34.6% from 2021 onwards. Some of the top firms working in AI include Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Apple Inc. (NASDAQ:AAPL). Investors eager to jump on this growth bandwagon should consider carefully the predictions made by top market experts regarding the products of these firms and how they are expected to fare in the future.
For example, it is expected that content automation is going be a major theme in the AI market moving forward. AI-capable software has developed the coding required to produce a variety of original content, including images, video, music, audio, and language. Research firm Gartner expects that by 2025, 30% of outbound messages from major enterprises will be synthetically generated. It is also predicted that more firms will focus on building AI systems for mass production in the coming years.
Ricardo Michel Reyes, a top executive at research platform Erudit, believes that another exciting trend in AI is quantum computing, which has been around for around 7 years but will have applications in the next 25 years or so. Per the expert, quantum computers are even more powerful than supercomputers in solving complex problems. Compared to the progress that traditional computers have made in the past sixty years, it is expected that quantum computers will evolve at an even rapid scale.
There are also concerns about the potential negative impacts of AI, such as job displacement and ethical issues related to the use of intelligent systems. Some experts believe that it will be important for society to carefully consider the implications of AI and to establish guidelines for its responsible development and use.
There are many experts on artificial intelligence (AI) who come from a variety of backgrounds and fields of study. Some of the key figures in the field of AI include: French computer scientist Yann LeCun, Chinese-American computer scientist Andrew Ng, Canadian computer scientist Geoffrey Hinton, Chinese-American computer scientist Fei-Fei Li, and German-American computer scientist Sebastian Thrun. You can look for these people's published work to read more about the future of artificial intelligence.
Our Methodology
These were picked from a careful assessment of the artificial intelligence (AI) industry. The details of each AI company are mentioned alongside a discussion around top firms in the sector in order to provide readers with some context for their investment decisions. Hedge fund sentiment is also included for further clarity on the money being poured into these firms and the confidence that elite investors have in their success. Please check out our recent articles 15 Biggest AI Companies in the World and 13 Most Advanced Countries in AI on this topic.
The Future of Artificial Intelligence: 10 Companies, 10 Predictions
10. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 67
Related Prediction: Businesses Can Build a Much Brighter Future Where Humans Are Relieved of Menial Work Using AI Capabilities
Oracle Corporation (NYSE:ORCL) offers products and services that address enterprise information technology environments worldwide. Oracle masters in rapidly building, training, deploying, and managing machine learning models. Additionally, broadening access to business applications with chatbots and conversational AI interfaces are a few services offered by Oracle Corp. Andrew Ng, an American computer scientist and technology entrepreneur, has already underscored how businesses can build a much brighter future where humans are relieved of menial work using AI capabilities.
On December 14, BMO Capital analyst Keith Bachman maintained a Market Perform rating on Oracle Corporation (NYSE:ORCL) stock and raised the price target to $95 from $90, highlighting that the company maintained a forecast of greater than 30% y/y CC organic Cloud growth in FY23.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm First Eagle Investment Management is a leading shareholder of Oracle Corporation (NYSE:ORCL) with 25.9 million shares worth more than $1.6 billion.
Just like Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Apple Inc. (NASDAQ:AAPL), Oracle Corporation (NYSE:ORCL) is one of the top AI stocks to buy now according to elite investors.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Oracle Corporation (NYSE:ORCL) was one of them. Here is what the fund said:
“The sell-off in the enterprise software sector, combined with the complexity related to the acquisition of Cerner, provided an opportunity for us to re-establish a position in Oracle (NASDAQ:ORCL). Oracle is one of the world’s largest and most profitable software companies-generating more than $42 billion in revenue and 40% operating margins. We have always admired the stability of Oracle’s business and the strength of its customer relationships. Now, the company’s organic growth is beginning to accelerate. Specifically, total revenue grew 7% in the fiscal year 2022 and 10% in the fourth fiscal quarter. In addition, management believes that Cerner’s growth and margins can be higher under Oracle’s ownership than they could on a standalone basis. Finally, we commend Oracle’s repurchase of roughly half its share base over the past decade, which has nearly doubled each remaining share’s interest in the business. Trading for only 12x calendar 2023 earnings ex-cash, we believe Oracle’s risk/reward is attractive.”
9. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 68
Related Prediction: AI Shows Tremendous Progress in a Very Short Time and Will Grow as The Demand for Hybrid Cloud Increases
Cisco Systems, Inc. (NASDAQ:CSCO) designs, manufactures and sells Internet Protocol-based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. Cisco has a range of cloud and network management tools based on AI technology, like Kube Flow and consistent AI. The Kube Flow project is dedicated to making deployments of ML workflows simple, portable, and scalable. The project has also partnered with tech giant Google for cloud services. Debo Dutta, a visiting scholar in Stanford University, has said that the project has made tremendous progress in a very short time and will grow as the demand for hybrid cloud life cycles increases.
On December 13, Morgan Stanley analyst Meta Marshall maintained an Equal Weight rating on Cisco Systems, Inc. (NASDAQ:CSCO) stock and raised the price target to $52 from $48, noting that estimate revisions are more likely to come late in the first half of 2023 as backlogs clear and the demand picture becomes clearer.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Two Sigma Advisors is a leading shareholder in Cisco Systems, Inc. (NASDAQ:CSCO) with 9.7 million shares worth more than $388 million.
In its Q1 2022 investor letter, Carillon Towers Advisers, an asset management firm, highlighted a few stocks and Cisco Systems, Inc. (NASDAQ:CSCO) was one of them. Here is what the fund said:
“Cisco Systems (NASDAQ:CSCO) traded lower as investors weighed how supply chain concerns would impact sales growth. The company has been upgrading its switching and routing offerings, which should lead to strong demand as on-site locations upgrade infrastructure.”
8. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 69
Related Prediction: Data is The New Oil
Intel Corporation (NASDAQ:INTC) engages in the design, manufacture, and sale of computer products and technologies worldwide. While Intel is not primarily an artificial intelligence (AI) company, it does have a significant presence in the AI market and has made significant investments in AI-related technologies.
Intel has developed a number of AI products and solutions, including hardware, software, and services that enable businesses and organizations to build, deploy, and manage AI applications. For example, Intel offers AI-optimized processors, such as its Intel Xeon Scalable processors, which are designed to provide high performance and efficiency for AI workloads. Intel also offers a range of AI software tools and platforms, such as its Intel Distribution of OpenVINO toolkit, which helps developers build and deploy AI applications on a variety of platforms.
One of the top AI-related products of the firm is BigDL 2.0, a tool that makes it easier for data scientists and data engineers to build end-to-end, distributed AI applications. Clive Humby, a British mathematician and entrepreneur in the field of data science, had predicted the use of big data on such a mass scale, even going as far as to say that data is the new oil.
On November 22, Mizuho analyst Vijay Rakesh resumed coverage of Intel Corporation (NASDAQ:INTC) stock with a Neutral rating and $32 price target, noting that the company has seen increased challenges in both the server and PC markets with server CPU ramps delayed to 2023 and softening PC demand.
At the end of the third quarter of 2022, 69 hedge funds in the database of Insider Monkey held stakes worth $1.9 billion in Intel Corporation (NASDAQ:INTC), compared to 65 in the preceding quarter worth $2.5 billion.
In its Q3 2022 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Intel Corporation (NASDAQ:INTC) was one of them. Here is what the fund said:
“Also on the detractor side, Intel Corporation (NASDAQ:INTC) delivered a disappointing revenue miss and lowered full-year revenue and earnings guidance as COVID-19-driven demand for PCs abated (where Intel enjoys half its sales) and a delay in its flagship Sapphire Rapids CPU hurt its data center business. Despite these issues, we still believe Intel is an economically sensitive turnaround story with substantial upside.”
7. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 74
Related Prediction: Cloud Computing Is Just a Better Way to Run Business
Micron Technology, Inc. (NASDAQ:MU) designs, manufactures and sells memory and storage products worldwide. A top AI product of the firm is the Micron 9300 NVMe SSD, a drive that meets the demands of performance-critical cloud and data center workloads with the speed, performance and capacity of flagship performers. Marc Benioff, the CEO of software giant Salesforce, has underlined how these devices are critical to businesses, saying recently that cloud computing is just a better way to run your business.
On December 7, Wells Fargo analyst Aaron Rakers maintained an Overweight rating on Micron Technology, Inc. (NASDAQ:MU) stock and lowered the price target to $70 from $75, noting that it would not be surprising to see shares trading lower ahead of the upcoming first-quarter earnings release.
At the end of the third quarter of 2022, 74 hedge funds in the database of Insider Monkey held stakes worth $2.5 billion in Micron Technology, Inc. (NASDAQ:MU), compared to 69 in the preceding quarter worth $2.2 billion.
In its Q2 2022 investor letter, Meridian Funds, an asset management firm, highlighted a few stocks and Micron Technology, Inc. (NASDAQ:MU) was one of them. Here is what the fund said:
“Micron Technology, Inc. (NASDAQ:MU) is a leader in DRAM and NAND memory production. We invested in the stock in the third quarter of 2019 during a cyclical downturn in the memory industry. Our rationale was that, while the memory industry is cyclical, we believed there are strong secular drivers in place that will lead to higher peaks and long-term growth. Our secular thesis is based on our conviction that the quest for ever-increasing compute speeds will increasingly rely on memory to solve bottlenecks and that increased memory content in nearly everything from mobile phones to automobiles will drive demand. Micron’s stock traded lower during the quarter due to macroeconomic concerns that led to lower earnings expectations. We increased our stake in the company, as we believe our secular thesis remains intact. We wanted to take advantage of what we view as temporary cyclical concerns that caused the stock to trade at less than 10x reasonable trough earnings per share (EPS) estimates and less than 7x recent peak EPS.”
6. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 89
Related Prediction: Machine Learning Will Increase Productivity Throughout the Supply Chain and Transform Automation
Advanced Micro Devices, Inc. (NASDAQ: AMD) operates as a semiconductor company worldwide. AMD offers AI-focused hardware, including graph inference engines that accelerate machine learning model inferences. The engines, AMD MIGraphX, can be used by installing binaries directly or building from source code. Dave Waters, a top petrological expert and renowned AI expert, had predicted the use of these AI-focused tools in business, saying that machine learning will increase productivity throughout the supply chain and transform automation.
On November 15, Credit Suisse analyst Chris Caso assumed coverage of Advanced Micro Devices, Inc. (NASDAQ:AMD) stock with an Outperform rating and $90 price target, noting that the advisory expected further server share gains and cloud market growth.
At the end of the third quarter of 2022, 89 hedge funds in the database of Insider Monkey held stakes worth $4.99 billion in Advanced Micro Devices, Inc. (NASDAQ: AMD), compared to 87 in the previous quarter worth $4.8 billion.
In addition to Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Apple Inc. (NASDAQ:AAPL), Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the top AI stocks to buy now according to elite investors.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Advanced Micro Devices, Inc. (NASDAQ: AMD) was one of them. Here is what the fund said:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global fabless semiconductor company focusing on high-performance computing technology, software, and products. AMD designs leading high-performance central and graphics processing units (known as CPUs and GPUs) and integrates them with hardware and software to build differentiated solutions for customers.
AMD has been gaining meaningful share in personal computing and server end markets over the past several years driven by the performance of its processors and technology and strong execution against its technology roadmap, and we believe share gains will continue over the coming years from a combination of AMD’s continued advancements and Intel’s stumbles in developing its leading-edge technology (…read more)
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Disclosure. None. The Future of Artificial Intelligence: 10 Companies, 10 Predictions is originally published on Insider Monkey.
