Which Tech Companies Will Break Out In 2023?

Key takeaways

• With the rise of ChatGPT, all eyes are on the artificial intelligence space as investors and analysts look for the best investment opportunities right now
• Even though major tech companies had a rough year in the stock market in 2022, there are plenty of opportunities to invest in AI in 2023, as some of these companies are starting to bounce back
• Major tech companies are racing to invest in AI as technological advancements are moving rapidly. We look at some of the moves that Microsoft and Alphabet are making to move forward

We all witnessed the decline of some of the largest companies in the world in 2022 as share prices plummeted due to macroeconomic factors and unique unprecedented circumstances like the Russian invasion of Ukraine and post-pandemic supply chain issues. With that said, there’s optimism that 2023 will be a better year for tech stocks and the field of artificial intelligence. We’re already seeing the revolutionary AI tools that hit the market in 2022 making an impact in 2023.

We’re going to look at artificial intelligence stocks worth investing in right now. These companies are poised to break out in 2023 after suffering some setbacks in 2022. Download Q.ai today to access to AI-powered investment strategies.

What happened to tech companies in 2022?

As we all witnessed in 2022, some of the biggest tech companies in the world saw stock prices tumble as there were many stock market sell-offs.

What exactly caused tech companies to lose so much market share in 2022?

• Soaring inflation. With the cost of goods and services increasing in 2022, many consumers started to think twice about spending money.
• Interest rate hikes. As the Fed raised rates, borrowing money became more expensive, which led to many tech companies slowing down their growth plans.
• Shifts in consumer spending. Consumers shifted their spending habits in response to prices going up and life returning to normal in a post-pandemic world.

We’ve looked at the struggles in the tech industry in previous posts, so this was just a quick reminder of why some of the biggest companies are trading at lower prices in 2023.

Can you invest directly in artificial intelligence?

ChatGPT and DALL-E 2 are two new AI-powered tools that have been considered revolutionary for consumer AI. These two launches are already impacting various industries in 2023, and we’re trying to figure out how to proceed with these innovations from a legal and business perspective.

If you’re looking to direct solely into artificial intelligence, that’s not possible as there isn’t one specific company that only focuses on this space. Most major companies harnesses the power of AI in some form, as it’s difficult to run a successful business these days without relying on this technology. Companies that rely on AI range from oil powerhouses to financial service firms. How you invest in AI will depend on which industry you choose. It’s clear that machine learning can’t be ignored in 2023, and further disruptions are expected.

What AI stocks are worth investing in?

While 2022 was a challenging year in the stock market due to soaring inflation, aggressive rate hikes, and unprecedented circumstances like the Russian invasion of Ukraine, there’s optimism that 2023 could be a better year for companies that utilize AI. Even though we’re not even an entire month into the year, many tech stocks have started to bounce back.

Here are some of the best artificial intelligence stocks to invest in. All of the prices are as of closing on January 23.

Microsoft (MSFT)

We recently looked at how Microsoft is considering investing $10 billion into ChatGPT as this tech giant continues to invest in the field of AI. This newest investment should help them compete with Google one day as the company hopes to improve its search engine capabilities using AI.

Microsoft’s Azure AI platform lets companies create innovative AI services for business purposes, and it’s the exclusive cloud provider for OpenAI. Microsoft also introduced AI-powered graphic design tools to Microsoft Designer that allow users to create images and social media posts from text prompts.

Microsoft shares are currently trading at $242.58, down about 18% for the year.

Nvidia Corporation (NVDA)

Nvidia is a high-end chip maker responsible for powering many popular AI applications. The company offers AI solutions to many industries, from healthcare to financial services. We saw Nvidia’s shares drop in 2022 due to various issues like the Ethereum Merge and the U.S. ban of chips to China.

However, it’s worth noting that major tech firms like Meta and Google are using Nvidia’s GPUs. With more tech giants looking to add AI to business operations, there will be a higher demand for specialized processors. Wall Street is higher on Nvidia with the rise of ChatGPT because as more people use this AI tool, there will be a higher demand for graphics chips.

Shares of NVDA are currently trading at $191.93, up about 7% for the year.

Amazon.com, Inc. (AMZN)

The power of AI is evident in all aspects of Amazon’s business. The company has been leveraging this technology to improve everything from the product recommendations that customers see to the Alexa device that many of us have in our living rooms.

Amazon also provides AI services to AWS cloud customers, where the company generates the majority of its revenue. On top of this, there are also Amazon Fresh and Amazon Go stores that have the Just Walk Out payment system.

Amazon shares are currently trading at $97.52, up about 13% for the year.

Salesforce (CRM)

Salesforces is known for offering a cloud-based relationship management platform that connects apps to bring companies and customers together. The company leverages AI to ensure the software smoothly manages customer relationships.

They also offer AI-powered information for sales, marketing, and service teams across every industry in which they operate. The revenue for Salesforce exploded to $26.5 billion for the fiscal year 2022, making this a stock worth investing in.

Salesforce shares are currently trading at $155.87, up about 15% for the year.

Alphabet Inc. (GOOG)

Alphabet, the parent company of Google, has been using the power of AI in virtually every aspect of the business, from filtering out spam emails to providing precise details on our photos.

Most of us know Google from the search engine feature, which could finally be challenged by Microsoft when ChatGPT services come to Bing. It was recently announced that Alphabet would be laying off 12,000 employees and doubling down on AI.

It’s also important to mention that Alphabet is the parent company of the AI subsidiary DeepMind, a firm planning on launching a ChatGPT rival in 2023 that can potentially be a more conservative option as an AI assistant. It has been reported that Google’s LaMDA chatbot system is so advanced that one of the engineers commented that it might even be irresponsible to make it available to regular users.

Shares of Alphabet are currently trading at $121.21, up about 12% for the year.

Tesla (TSLA)

While many don’t think of Tesla as an AI company since they focus so heavily on electric vehicles, the company has to be mentioned here since they host an annual AI Day to attract the brightest minds in the space. While the company has made many strides in AI, they also continue to promise a humanoid robot along with a robot taxi service that would work like a combination of Uber and Airbnb.

Recently, Tesla has started using AI systems for quality control to have an automated system that would simplify the entire process.

Tesla shares are currently trading at $143.75 and are up about 32% for the year.

Workday, Inc. (WDAY)

Workday uses AI to change the way that companies around the world utilize HR analytics. Companies use Workday’s services for analytics tools that will help them make data-based decisions and financial tools for budget planning when it comes to staffing. The AI services from Workday help with decision-making, insights for new opportunities, and improving employees’ experiences so they can unlock their full potential.

Workday shares are currently trading at $176.43, up about 4% for the year.

Those are some of the top AI stocks to keep an eye on in 2023 as the advancements in the field continue. As we’ve stated in the past, many other major companies are leveraging the power of AI to improve business operations, so this isn’t a comprehensive list.

How Q.ai uses artificial intelligence

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