Post your best artificial intelligence stock picks


#1

I want to shift my portfolio towards investing in AI…

Post your artificial intelligence stock picks…


Investing in robotics 2018 - what strategies should I use?
#2

If you are investing in AI, you need to approach it differently than everyone else…

There is a lot of hype around FAANG stocks at the moment. Personally, I would completely avoid them…

An interesting angle would be investing in the infrastructure needed to build and maintain ai.

One of these would be so-called Systems of intelligence

Toyato’s or Ford’s production line are automated processes which have been deeply integrated with other parts of the company to create incredibly strong competitive advantages, or “moats”.

A system of intelligence requires four components to be successful:

• Data
• Data-driven product design
• AI
• Domain expertise

I think interesting opportunities will arise when these elements are mixed together.

E.g. a piece of software which maintains automated data hygiene…

Finally, it’s worth remembering that ai isn’t this crazy, new, ephemeral thing. Very basic ai has been around for years in factory automation. Look at those factories and their processed. Then see if you can find an ai company in the twentieth century equivalent!


#3

There is no doubt that big money is looking at FAANG stocks and the Chinese equivalents:

If you are want to be successful with investing in ai, you need to turn over some rocks and uproot the less sexy companies…

One that comes to mind for me is NVidia.


#4

I agree on investing in infrastructure:

It was mentioned above but I think a great buy could be NVidia. NVD’s high performance computers are the technology used by Tesla for their self-driving cars.

NVidia definitely isn’t as sexy as Tesla, but if you look a little closer it has very interesting attributes:

• Provides the digital infrastructure for ai, vr, self-driving cars as well as graphic engines for video games

• 10,000 plus patents

• Positive cash flows since 2014

• $5bn. in cash

• Barely any debt

• Net income has ballooned since 2013 by 500%

NVidia is definitely a look!


#5

Another one I have come across is INSEEGO [NASDAQ: INSG]

Inseego works on vehicle analytics.

I could see Inseego growing as autonomous vehicle companies work to make their vehicles as safe as possible.

• Market cap: 82m

A word of warning though… their financials look a bit medium rare!


#6

Well, I can tell which stocks should not be on your list!

Stocks listed on pages like these:

http://www.nasdaq.com/article/birth-of-an-industry-early-investing-hot-spots-in-artificial-intelligence-cm807269


#7

I am not an expert on NVIDIA…but there is definitely hype out there for the stock…

NVIDIA’s recent success hinges on the crypto hype cycle and crypto mania.

Everyone and their granny is now investing in “AI”. In 2017, venture capital for companies in AI-related fields doubled, reaching a total of $12 billion. AI represented a tenth of total investment.

It is no secret that NVIDIA has ambitions in AI. I think NVD’s PE ratio of nearly 40 make it over-hyped personally.

On the Crypto Front, the crypto boom is over. In March, CEO Jensen Huang said crpyot was “here to stay”

Only five months later, NVIDIA completely rolled back on what they were saying. To quote their CFO, Collette Kress:

We believe we’ve reached a normal period as we’re looking forward to essentially no cryptocurrency as we move forward.